We resume the debate on the Estimates for Public Services 1990. The Minister of State, Deputy Leyden, was in possession. I understand the Minister has 14 minutes remaining of the time allocated to him.
Estimates for Public Services 1990 and Public Capital Programme 1990: Motion (Resumed).
Debate resumed on the following motion:
That Dáil Éireann takes note of the 1990 Estimates for the Public Services (Abridged Version) and of the 1990 Summary Public Capital Programme.
—(Minister for Finance).
Before the debate was adjourned I had mentioned that the second of my Department's triennial reviews of industrial performance was being undertaken at present and is due to be published early next year. Detailed submissions have already been received from a number of organisations. A major employment study of the attitudes of Irish industrialists has been commissioned. In creating much needed employment in the next few years, I expect a major contribution to be made by the international services sector, in particular, in the financial services area which is a growing sector worldwide. A major factor in capitalising on this growth and translating it into jobs in this country, will be the development of the International Financial Services Centre here in Dublin.
The first phase of this development is now almost completed and already over 70 projects have been approved in principle to set up operation there. These companies, which will employ about 1,500 people, include major international institutions such as Citicorp and Chase Manhattan from the US, Lawson Mardon from Canada, Dresdner Bank and Nixdorf from West Germany, British and Commonwealth and Nat West from the UK, BBL and Kredietbank of Belgium and ABN of the Netherlands. Most recently we have had commitments in principle from a number of major Japanese institutions to set up there and these include names such as Daiwa, Sumitomo and Mitsubishi Bank. Negotiations are ongoing with a number of other institutions who are interested in the centre and the volume of inquiries is growing all the time.
The Estimate shows no increase for IDA's grants to industry. This is in line with Government requirements that the promotional agencies should adopt an approach of greater selectivity in the types of projects which are assisted, with reduced cost to the Exchequer.
It is relevant to point out, however, that while the Exchequer element has not been increased, the IDA will be permitted to retain an additional £4.1 million of own resources, as compared with 1989. This increase in net own resources is necessary to help cover the anticipated drawdown from some major recent projects, such as Intel and Motorola.
The IDA grant-in-aid for building operations has increased from £3.5 million in 1989 to £11.5 million in 1990. However, net own resources income has been reduced from £10 million in 1989 to £5.5 million in 1990. Of the total expenditure of £17 million, one third will go towards fixed overheads, while the remainder will go towards a long-term programme of developing selected sites, including advance factory space, at strategic locations on to which the private sector will be encouraged to build additional new factory space and the upgrading of existing vacant factories for new industries.
There is no increase in grant-in-aid in respect of SFADCo's grants to industry. Capital expenditure for industrial buildings in the SFADCo area shows an increase of £0.8 million over the 1989 outturn. This will be used to finance ongoing industrial building commitments, upgrading at Plassey Technological Park and the opening up of sites for private sector development. The bulk of SFADCo's budget is, however, accounted for by own resources, both capital and current, and when account is taken of a slight expected fall in current revenues there, the company's overall budget will be about the same as in 1989.
The Estimate provisions for both the IDA and SFADCo are in line with expenditure projections put forward for EC Structural Fund support. My Department have prepared a comprehensive programme for the development of Irish industry over the five year period 1989-93. This programme sets out in great detail all of the support measures being undertaken, the results expected and the level of resources to be expended. Details of this programme will be announced as soon as it has been agreed by the EC Commission.
In considering the 1990 Exchequer allocations for the State's marketing agencies, Córas Tráchtála and the Irish Goods Council, a major concern of the Government was the need to equip Irish industry to cope with the market changes and meet the increased competition which will come about with the advent of the Single European Market. Good marketing is the key to success in markets at home and abroad. Irish firms must be able to compete with the best in Europe on quality, price and delivery. This means knowing what the market demands and gearing our products and their delivery towards satisfying these requirements with a level of service that is second to none.
The 1990 Book of Estimates proposes to increase Córas Tráchtála's allocation from £20.8 million in 1989, to £24.637 million in 1990 — an 18 per cent increase.
This level of Exchequer support will enable CTT to maintain their current services to Irish exporters and to expand and initiate new measures specifically related to building the marketing strengths which will be needed to compete in the Single European Market. The specific objective of these measures is to increase the exports of Irish SMEs from £2.5 billion in 1988 to £4.5 billion by the mid-1990s.
At present CTT provide a range of services to 2,500 exporters of goods and services. These services include those which help firms to identify new opportunities in overseas markets and to take advantage of these opportunities by achieving increased sales. CTT provide, through their overseas office network, a range of in the field support services to exporters including introductions, interpreters and office facilities. CTT's market information centre in Dublin has an immense amount of market information of benefit to Irish exporters. It is a computerised system providing access to online data bases and the CTT international network which puts a world of valuable information at the exporter's fingertips. Through their participation in trade fairs, exhibitions and inward buyer airlifts, CTT's group promotion programme gives smaller firms a market profile which individually they could not achieve.
These programmes are providing a valuable support framework for industry in their efforts to achieve an increase in sales overseas. However, it is also recognised that the completion of the Single European Market will intensify the competition which Irish firms face in domestic, European and world markets. These increased competitive pressures call for new and aggressive marketing by Irish firms. In helping firms to achieve this, CTT will focus support on specific geographic areas which their research and analysis indicate provide significant new opportunities for Irish firms. CTT will provide critical support to Irish firms with a commitment to improving their marketing capabilities aimed at taking advantage of these opportunities. Extra funding provided for CTT in the 1990 Estimates will be devoted to the regional markets/international partnerships programme and the marketing consultancy programme.
Under the regional markets programme CTT have selected regions in Europe and other overseas markets which are showing above average economic performance with a view to identifying suitable opportunities and partnership arrangements for Irish SMEs. The support provided by CTT will cover the full range of business development from the sale of the Irish company's existing products through to product development and reciprocal distribution arrangements. The initial targeted areas in 1989 were Catalonia in Spain and Milan/Turin in Italy. The positive reaction from the Irish firms who participated in recent trade missions to these two regions suggests that significant new business opportunities will be generated under this programme. Linkages with these regions will be intensified in 1990 and work will commence in the Baden-Wurttemberg region of West Germany and Grenoble in France.
In order to help gain market share in overseas markets CTT are also developing a new approach which aims to establish linkages between Irish SMEs and firms in other countries with a view to developing opportunities in third markets. Denmark has been targeted as the first country in which these new partnership arrangements will be developed. A series of "Source Ireland" programmes directed at major industrial and commercial concerns in Europe, demonstrating the high quality and competitiveness of Irish goods, were also initiated in 1989 and will be developed further in 1990.
While these new and expanded programmes provide a more precise focus on areas of opportunity for Irish SMEs, if the new opportunities identified are to be availed of and translated into new investment and employment at home in Ireland it is vitally important that Irish firms bring their marketing capability up to European standards. In order to tackle the recognised deficiencies in marketing which exist in Irish industry, CTT will initiate in 1990 the marketing consultancy programme at a cost of some £2.5 million.
This programme will be confined to a limited number of firms which can demonstrate that they possess the requirements needed to be able to break into new markets. Each of the firms selected will undergo a thorough evaluation of their marketing capacity by objective consultants. The evaluation will identify the practical steps which need to be undertaken by the firm in order to develop their overseas marketing capability. Firms which make a significant commitment to pursuing the steps identified to upgrade their marketing capability will be eligible for substantial grant assistance. The exact format and criteria for participation in the programme are currently being worked out by my Department and CTT.
I would also like to bring the House's attention to the Government's decision to phase out CTT's market entry and development scheme. This scheme was introduced in 1985 to assist exporters with the initial marketing expenses associated with entry into and development of new markets. Because of the strict criteria applied to entry to the scheme and, in recent years, greater availability of funds to firms through lower interest rates, the unlisted securities market and NAD-CORP the take-up of this scheme has declined.
In the light of the Government's commitment to fund the marketing consultancy programme, it has been decided that no new extrants will be permitted to the market entry and development scheme. The 1990 allocation of £0.52 million reflects the need to meet commitments to existing participants in the scheme.
Ireland's export performance in recent years has been exceptional with double digit increases in overseas sales every year since 1986. No one would deny that much of this surge has come from the multi-national sector, but there is increasing evidence that indigenous small and medium-sized enterprises are also sharing in our expanded markets. It is on this latter group that the Government have directed CTT to concentrate their efforts and this is where the thrust of the new programmes will be concentrated. We must close the gap that exists between Irish firms and other Community firms in terms of marketing skills, information and organisation, but Government support alone cannot bring about the necessary changes.
The export promotion programmes of Government agencies are a recognition by the Government of the significant task to be undertaken. These, however, must be seen simply as the instigator and catalyst for action by firms to a level of marketing excellence so that the need for State financial support declines. Otherwise the programmes become self-defeating as their financing adds to the taxation burden which inhibits the growth and development of Irish industry. Industry must show an increased willingness to develop a market led approach to their business and to use their resources to meet the requirements of their most important source of support—their customers.
Before firms can expect to succeed in export markets, they have to be able to compete successfully in the domestic market. The Irish Goods Council allocation for 1990 is £1.8 million compared with £1.65 million in 1989, an increase of 9 per cent. This will enable the council to carry on the programmes which have been very successful over the last few years and which have resulted in hundreds of millions of pounds in new sales being generated. The council will also be in a position to expand its in-company marketing development programme which commenced in 1989. The programme is geared towards small and medium sized enterprises and is designed to build up their marketing strengths, win an increased share of Irish market sales and be ready to respond to growth opportunities created by the single market. Groups of companies, which have identifiable growth potential and commitment but which lack marketing expertise, are organised on a sectoral basis and participating firms are assisted to develop and implement their own marketing plan. Support under the programme will be given both individually and on a group basis.
In relation to science and technology, I hope my colleague, Deputy Michael Smith, will have an opportunity to outline the exciting developments taking place in his area of responsibility. I am sorry I have not an opportunity to outline these developments.
Fáiltím anois roimh an Teachta O'Shea.
Go raibh maith agat, a Leas-Cheann Comhairle. Gabhaim buíochas leat freisin as an chomhairle a thug tú dom níos luaithe sa ló.
Tá fáilte romhat.
I have some difficulty with the figures regarding the allocation to local authorities for the provision of houses, as outlined this morning by the Minister for the Environment. He stated in his speech that there was a reduction of £18 million in the 1990 estimates over that of 1989. The Book of Estimates shows that the Estimate for 1989 was £39 million and the Estimate for 1990 is £6 million. Therefore there is a difference of £33 million. I would question the Minister's figure there. It is to be welcomed that an extra £45 million is being provided from tenant purchase schemes but of course this is being provided from local authority funds. The Minister mentioned an increase of £27 million but I would dispute that. In 1990, £51 million will be available as against £39 million in 1989. I question this figure as presented by the Minister this morning.
The Minister also dealt with rate support grants for local authorities. He made a great virtue out of the fact that there is an increase this year but this must be taken against the background of a decrease of 9 per cent three years ago, 14 per cent the year before last and 5 per cent in the present year. This year £166 million will be paid to local authorities by way of rate support grants, an increase of 4 per cent over last year, but the Minister took no cognisance of the fact that £110 million had been denied to them in the past three years.
Going back to 1977 when rates on domestic dwellings were abolished, a number of points should be underlined. Indirect taxation, VAT and PRSI contributions were adjusted so that the money that was not being paid directly to local authorities by way of rates was being paid by way of indirect taxation. In 1983 there was a Supreme Court decision whereby agricultural rates were found to be unconstitutional, not on the basis that the agricultural community were not liable to pay but that the old PLV system was an unconstitutional method of assessing how much they should pay. The following year the Exchequer had to provide £110 million in rate support grants in lieu of agricultural rates and £120 million had to be provided the year after. This money was provided by the very same sector who are now, in a lot of cases, resisting the payment of charges against a background of local authorities being decimated.
There is one very important area which is a victim of the present cutbacks and that relates to the developmental role of local authorities. This country has a great deal of tourism potential in terms of its archaeological and historical remains. In the city of Waterford which I represent, thanks to some schemes that are available from the Department of the Environment, particularly the designated areas scheme for commercial redevelopment, a great deal is being done to make that city more attractive for visitors and tourists. A great deal of the development of our historical and archaeological remains falls to local authorities and if they do not have the resources, the work cannot be done. It is lamentable and also very shortsighted that local authorities are denied the money needed to promote our tourism assets. If these assets were developed more tourists would come here and more revenue by way of commercial rates would accrue to local authorities. At the end of the day, from the point of view of job creation and the income of local authorities, it is very sad that local authorities are being denied money for developing purposes.
Something that disappointed me bitterly this morning was the Minister's response regarding the decision of two of the major banks to introduce charges on local authority accounts. I raised this matter in the House two weeks ago with the Minister of State, Deputy Connolly. Obviously nothing of importance has happened in the interim. It would seem from the Minister's contribution this morning that no great effort is being made to push the banks in the direction of withdrawing from these charges. I would still put forward the suggestion I put forward to the Minister of State on the night concerned, that is that the Government put the banks on alert that, if they pursue these charges, the bank levy will be increased in the forthcoming budget in line with the charges and that subsequently the local authorities will be reimbursed. If these charges are introduced this year they will cost the local authority in Waterford £70,000. At present when local authorities are so badly strapped for money, this is a huge amount. For many years the banks have held lucrative local authority accounts. Another matter that should be taken into account is that local authorities and banks have a very special relationship in that the banks are the treasurers to the local authorities. I would ask the Minister to prevent the two major banks from introducing these charges.
During the campaign for the 1985 local elections, Fianna Fáil campaigned on the basis of abolishing local charges and providing the money from the Exchequer through enhanced rate support grants. The Government should face up to their responsibility and their moral obligation to provide that money. They completely about-faced on that promise. This has caused a great deal of anger among people, not least among some of their own supporters who in all honesty went out and campaigned on the basis that if Fianna Fáil were returned to power they would abolish the charges. In fact, the opposite has happened — local authorities have been decimated and charges which are highly contentious are rightly opposed by people on the basis that they are a double taxation.
I have already referred to the problem which arose because of agricultural rates. It is not good enough that the PAYE sector are being asked to carry the can all the time. The Minister gave an ebullient speech this morning in regard to local authorities but he took no cognisance of the real position of local authorities where many employees have left and the housing programme is virtually at a standstill. This is not good enough. Fianna Fáil have a long-standing obligation to do something about this problem. I call on the Minister and the Government to live up to their obligation in this regard.
I want to refer to education for which I have responsibility on behalf of the Labour Party. Looking through the Book of Estimates, questions arise regarding school transport and the accuracy of the Estimates in this context. The Estimates show that £26 million was provided for school transport in 1989 and that this will be increased to £31 million in 1990. I pursued this subject in the Seanad when the Minister reduced by some £5 million the allocation to Bus Éireann for school transport. My colleagues and I pointed out that there was no fat in the Bus Éireann system and that they were operating a very efficient service. In answer to a parliamentary question which I put to the Minister for Education a couple of weeks ago she indicated that she will be bringing in a Supplementary Estimate in order to give Bus Éireann the extra funds which were required to operate the school transport system in 1989. When we look at the Book of Estimates in the context of the Supplementary Estimate being introduced we find that the 20 per cent increase in the allocation for school transport does not stand up.
Another area which is causing much concern in the Labour Party is agri-business and specifically the financing of the Common Agricultural Policy expenses in connection with market intervention and the financing of other FEOGA guarantee measures. A 41 per cent reduction, from £67 million to £40 million is shown in the Estimates this year. We understand that the funds which come back to the agri-business do so on the basis of £10 for every £1 the State provides. On the basis of that analysis it would seem that the agri-business in 1990 will lose something of the order of £270 million. The question which must be asked in terms of the £2.86 billion in Structural Funds which the Minister for the Environment spoke about is: is there some kind of trade-off and will we have to take a reduced amount in the agri-business area, the area from which this country benefited most in terms of European funds? If these figures convey what they appear to convey — they indicate to me that there will be a £270 million reduction in what will come into the agri-business sector this year — it is an appalling move and puts in a different context altogether the money which will accrue to this country over the next three years in terms of the Structural Funds.
I should like to refer again to education in which I have a special interest. I note from the Estimates that there will be a reduction from £87 million to £50 million in terms of loans and grants to students of primary teaching training colleges. Surely this indicates that the number of places in teacher training colleges will be drastically reduced next year. It is appalling if this will be the case. One has only to look at the Sunday papers in recent weeks to see the advertisements from educational authorities in Britain who are offering inducements to Irish trained teachers to take up employment in the UK. It is one of the worst aspects of Thatcherism when people in the public service, whether they are teachers or public servants generally, lose the sense of their own worth. I hope we do not reach the point whereby we do not have sufficient teachers to implement the pupil-teacher ratio because as sure as night follows day that will be the outcome of the policy of reducing the number of places in teacher training colleges.
I was alarmed to see a reduction in the grants available for higher education. There is a 2 per cent decrease in these grants. I understand that 90 to 95 per cent of the funding of the regional colleges of technology in the VEC sector comes from the European Social Fund. A child in Waterford city or county has half the chance of a child from Cork city or county of obtaining a university degree. I believe the Clancy report underlines fully where things are at in third level education and how certain socio-economic groups are very seriously disadvantaged. However, there are also geographic factors which compound this problem.
This brings me to the question of the level of grants and the income limits which apply to third level grants. It is regrettable that children who are quite capable and qualified to take up places at universities are denied that opportunity because of the income of their parents. The income eligibility levels for third level grants are much too low. In an effort to improve the situation in terms of having equitable and equal access to third level education income limits should be based on net rather than on gross income. We are all aware that we are too heavily taxed and whereas a gross income can look quite good, when the various deductions are made it can be very bare indeed. The reduction of 2 per cent in the level of funding in the Estimates in this area suggests that there will not be any great initiatives taken this year in terms of improving the level of income limits to enable more parents to avail of grants for their children.
With regard to first level education I should like to point out that at the end of this school year there will be a one-pupil improvement in the pupil-teacher ratio in national schools. That is very welcome and I look forward to further improvements in the pupil-teacher ratio. However, there is another problem affecting our schools that we have to deal with and, in my view, it is a more fundamental one, particularly in urban areas. I am referring to the question of discipline. The Minister has not introduced an appropriate code of discipline. As a person who is not too long away from the classroom I am aware that we have a growing number of children in our schools who could be loosely described as being emotionally disturbed. Unfortunately, the system does not cater for them in any substantial way.
Children who are slow learners are catered for by remedial education but emotionally disturbed children who quite often are very intelligent have different problems and learning difficulties. I compliment the Minister for Education on her decision to introduce three pilot projects in that area but there is a great need for a more solid provision for a school psychological service. The service available from health boards was, sadly, reduced during the period of the health cutbacks. Children who are emotionally disturbed remain in a classroom taking up a great deal of the time of teachers. I welcome the improvements announced in the Book of Estimates but I am saddened that the fundamental problem in primary education has not been addressed.
At the outset I should like to advert to a statement by Deputy Shatter this morning about pollution and fish kills. It is important that I should convey to him what the position was this year. Members will be aware that there was a distinctive reason for the likelihood of fish kills as a result of the very warm summer. That resulted in a decrease of about 20 per cent in water levels. Agricultural pollution was responsible for fewer fish kills this year than last year. There were 25 such fish kills in the period January to September 1988 and 22 in the same period in 1989. I accept that even at 25 or 22 there were too many fish kills. I was anxious to put on the record of the House the specific reason for the possibility of fish kills this year lest what Deputy Shatter said this morning be taken as being factual.
I welcome the opportunity of speaking in this debate and propose to concentrate on the tourism and transport sectors of the economy. The tourism and transport sectors have a crucial role to play in strengthening the productive capacity of the economy. Because of their sheer size and scale, their pervasive nature and their importance to the national economy, they are key sectors for the attainment of the single market objectives.
Since assuming the Tourism and Transport portfolio in July 1989, the Minister, Deputy Séamus Brennan, like his predecessor, has been pursing the further liberalisation and development of air transport with the broad objective of securing the widest possible range of air services to and from Ireland at the lowest economic cost so as to maximise the opportunities for tourism and to meet the growing needs of industry and commerce for air services. While considerable progress had been made in these areas in recent years, there is still scope for significant further development. We are, therefore, continuing to press ahead in the international arena for further changes in the regulatory environment in which Irish airlines operate.
The EC Community is one arena where significant change is taking place. The proposals adopted by the EC Council of Transport Ministers in December 1987 represented the first phase in the liberalisation of the regulatory régime governing air transport in Europe. Irish airlines have been very successful in grasping the opportunities this has presented. Further opportunities will present themselves as a result of the ongoing discussions on the next phase of liberalisation by the Council of Ministers. This will be a top priority for the transport programme during the Irish Presidency in the first six months of next year. In particular, the Minister and I will be pressing for the introduction of a more liberal fares régime, more open access opportunities, a more open capacity régime and the liberalisation of freight operations.
It is widely accepted that the advent of competition, which the Government have actively encouraged, has been a major catalyst in the dynamic growth of air passenger traffic in recent years. Over 1,000 jobs have been created in Aer Lingus. New jobs have also been created in Ryanair, in Aer Rianta, at the regional airports and in the tourism industry generally. Estimates by the Central Statistics Office indicate that spending in Ireland by air passengers from the UK alone jumped from £103 million in 1985 to £215 million in 1988. The Government's policy is aimed at consolidating and building on these achievements.
In the financial year ended 31 March 1989 the Aer Lingus Group recorded a profit of IR£41.3 million, an increase of 9 per cent over the previous year. The air transportation results, which include airline related services, contributed to this improvement. Passenger growth in 1988-89 continued with a 32 per cent increase in passenger traffic and cargo tonnes up 12 per cent. Substantial growth is being maintained during the current season and I am confident that the company will achieve a satisfactory level of profits for the current financial year.
The Public Capital Programme provides for expenditure by Aer Lingus of £189 million compared with an expected outturn of £83 million for 1989. The bulk of the projected 1990 expenditure, £131 million, relates to aircraft acquisitions. During 1990 the airline will take delivery of eight new aircraft — two Boeing 737-400, four Boeing 737-500 and two Fokker 50s. In total, new aircraft acquired and ordered since 1987 amount to 18 units, and will be delivered by early 1991. The cost of these aircraft is in excess of US $450 million. This entire expenditure programme is being funded by Aer Lingus from commercial borrowing and from their own resources without seeking new equity investment from the Exchequer. While Aer Lingus capacity to do so testifies to the current financial strength of the airline, it is essential that the company maintain healthy profits to ensure that it will be able to finance fleet renewal and expansion through the nineties.
Apart from the creation of jobs in frontline areas of the airline the company are also making a significant contribution to the Programme for National Recovery through their investment in high technology airline related subsidiaries, the most notable of which is the proposal to establish a £35 million aircraft maintenance hangar at Dublin Airport. The start up of the facility is planned for early 1991 and it is expected that 560 new jobs will be created by the project by 1997.
The major capital investment programme which has been undertaken at the State airports in recent years will continue into the nineties. This investment is essential to relieve the pressures on existing facilities and to provide for the projected increases in passenger numbers over the next few years. It is evident that the traffic boom experienced in recent years is continuing with increases in passenger numbers for 1989 running at 15 per cent for Dublin Airport, 16 per cent for Cork and 8 per cent for Shannon.
The National Development Plan provides for total capital investment in the order of £100 million at the State airports up to 1993. Expenditure of up to £21 million has been authorised for 1990. In the case of Dublin Airport major investment projects include an extension of the passenger terminal facilities together with new and improved car parking facilities. In addition, a major extension of the apron area is planned.
At Cork Airport the main runway has been extended and work on a major extension to the terminal building to cater for the growing numbers of passengers using the airport will start early in the new year. Shannon Airport will also undergo upgrading of the passenger terminal and improvements to airside facilities.
The major development programme which commenced in 1988 involving total expenditure of up to £5 million to upgrade the regional airport network is nearing completion and will put these airports in a position to exploit fully the opportunities for traffic growth. Arising from this investment passenger traffic is now running at over 400,000 persons per annum. Development of these airports is an essential element in the creation of a complementary and properly integrated national transport network and is a crucial element in Ireland's access transport policy and the strategy to reduce the effects of our peripherality. The improvements are also regarded as essential for the stimulation of local investment and for the economic, industrial and tourism development of the regions. A further investment of £2.5 million has been included in the 1990 Public Capital Programme with matching local contributions. I put particular emphasis here on local contributions falling short in some areas.
In common with our counterparts throughout Europe the Department are heavily engaged in a major investment programme in air navigation facilities, costing approximately £30 million. This will see the renewal of all major radar communications, navigational aids and instrument landing systems in the country. At Cork Airport new instrument landing systems have been installed, together with a new Doppler VOR and distance measuring equipment. A new radar will be provided as part of the radar replacement programme. Equipment, however, is only half the picture. Manpower is another part. I am glad to say that 27 new staff have recently taken up duty in the Air Traffic Control Service and up to 30 more will be recruited in the new year.
Adequate freight links between Ireland and the Continent will be vital if the Irish economy is to maximise its export growth potential and capitalise on the opportunities being created by the completion of the single market. It is clear that such links should be cost-effective, fast, frequent and reliable. Good ferry links are the most likely answer to Ireland's problem of peripheral location.
I will now turn to CIE, which is the major expenditure item in the Department's Vote. The subvention for CIE for 1990 will be £110.8 million, compared to £109.8 million in 1989. This is in accordance with the Government policy of reducing the normal subvention in real terms annually over the years 1989-91. The sum provided is nevertheless a substantial amount, over £2 million per week, devoted to providing rail and road services for the community as a whole.
The overall performance of the CIE organisation is closely monitored by the Minister and the Department. It is clear that the board and its subsidiaries are endeavouring to reduce costs, rationalise services, market their products aggressively and be more responsive to customer demands. This is as it should be.
Progress has been made in relation to which CIE are to be congratulated, but there are still further advances to be achieved. While we are naturally conscious of the high level of subvention given to CIE, it should be recorded that in the period 1986-89 CIE's dependence on the Exchequer for normal subvention fell by 16 per cent in real terms. Further reductions are foreseen in the years ahead.
On the capital side the 1989 allocation to CIE is £26.9 million. As the House is aware this capital allocation is non-voted and must therefore be funded from the board's own resources. The 1990 allocation, which is significantly larger than the 1989 figure of £16 million, will allow the board to continue to invest in infrastructure, rolling stock and buses in the interest of their services.
The 1990 capital spending allocation would allow for work to commence in relation to rail developments in west Dublin. The House is already aware of the detailed proposals for an improved commuter rail service from Maynooth and a new commuter rail service from Clondalkin. It is estimated that these projects would cost about £28 million. Assistance from the EC Structural Fund will be essential for advancing consideration of these proposals.
The accelerating moves towards the completion of the internal market offer opportunities which the Irish haulage industry is already showing its ability to exploit. As an island State on the periphery of the Community, we will continue to press Ireland's special needs with our EC colleagues.
The increased level of confidence and activity in the Irish international haulage industry was shown by the use of all 940 EC multilateral haulage authorisations allocated to Ireland for 1989. This represents a considerable increase over previous years and proposals are now under discussion at EC Council level for further increases in the number of authorisations issued in each of the next three years, leading to complete liberalisation by 1 January 1993.
I am pleased to say that at a meeting last week of the European Conference of Ministers of Transport I succeeded in persuading my colleagues to increase Ireland's allocation of international road haulage licences for 1990. The additional allocation to Ireland was approved as a recognition of the special access problems that affect Irish hauliers in serving mainland Europe because of our geographical location.
In addition to the EC and ECMT multilateral licences, Irish hauliers can also take advantage of permits under a series of bilateral agreements signed with most EC and Nordic countries. This year the Government agreed to the terms of road transport agreements with Portugal and Czechoslovakia.
We have agreed with our counterparts in the UK and Belgium to abolish the need for hauliers from either country to use permits for haulage between our countries. By removing the need for permits for haulage with countries which represent over a third of our overseas trade, we are contributing to the common European goal of free movement of goods within the Community.
Growth is the key word when we talk about Irish tourism and its future. The past three years has seen a huge upturn in the fortunes of the industry. Visitor numbers for 1989 will, it is estimated, be in the region of 2.8 million — an increase of 15 per cent on last year. This represents an increase of over 900,000 visitors or 48 per cent compared with 1986, and is clear evidence of the growth potential of the sector.
In 1988 we saw 419,000 North American visitors come to Ireland. It is estimated this business was worth £165.5 million to the Irish economy. It represents a significant portion of our overall foreign visitor numbers and revenue. I am confident that in coming years we will do even better. In the recent Ireland/US talks we secured landing rights for Aer Lingus to serve Los Angeles. Aer Lingus services on this route will further encourage growth in tourism from the US, particularly that emanating from the West Coast.
On coming into Government in 1987 we realised the growth potential and the tremendous employment and wealth creation opportunities which tourism presents. Our economic strategy is designed to ensure that the Irish tourism industry is fully geared to compete successfully in the international tourism market.
I have already referred to the Government's access transport policy which is consistent with our tourism strategy and, indeed, has played a significant part in the much improved tourism performance over the past three years. This performance has, of course, been helped by the response of the industry to our promptings and encouragements, including in particular the business expansion scheme, and leadership.
As the House knows, the Programme for National Recovery set challenging growth targets for the tourism sector — doubling of visitor numbers, 25,000 new jobs and £500 million in additional revenue. At this stage, approximately halfway through the programme, the industry is firmly on course for meeting the targets, which to many at the time seemed over ambitious, but I said then that they were realisable.
Next year, however, will represent a crucial phase in the development of the industry and in the relentless pursuit of these targets. To compete effectively in the markerplace we must improve the quality of the existing product and develop a new range of products for which there is an identified market demand.
Various major tourism studies in recent years have all pointed to the need for increased investment in the development of tourist attractions and facilities particularly those based upon our natural, cultural and heritage resources. A radical overhaul of the Irish tourism product, backed up by a well focused marketing approach, will, therefore, represent the cornerstone of the Government's tourism development strategy over the next five years. Tourism has been selected by Government as a central axis for development in the Government's National Development Plan, 1989-1993 and will be a major beneficiary from increased EC Structural Funds over that period.
The plan provides for an investment programme of almost £300 million by the public and private sectors in a wide range of existing and new tourism attractions, and facilities. EC Structural Fund assistance for the tourism programme will total over £146 million over the five years — £28 million on training, £52 million on infrastructural projects by State and local authorities and £66 million to support private sector product development and marketing.
In the context of this programme, the 1990 public capital programme includes a provision of £21.4 million in EC Structural Funds on top of the £14.5 million already included in the 1989 public capital programme.
Caithfidh mé a chur in iúl duit go bhfuil tú ag tógaint ama do chara.
Tá brón orm go gcaithfidh mé críochnú. Tá roinnt leathanach eile agam.
Tá breis agus do chuid ama féin caite anois.
The contribution of the Minister for Finance this morning was very smug, giving little hope to the unemployed, the under-privileged or the many emigrants who have left our shores over the last number of years. I estimate that about 250,000 have left and pro rata to the size of this country that is far greater than the drift from the East Germany in recent times.
The Minister of State for Tourism referred to the growth in the tourist industry. A lot of the growth in recent times is due to the return of emigrants to see their families.
The allocation to CIE this year is a net reduction. As a user of the main line trains I can say that the service is overcrowded and that there is serious overloading of trains because of the shortage of rolling stock and the mainline system is dangerous because of the inability of CIE to upgrade the service due to recent cutbacks. I have full praise for the staff of CIE who work under trying circumstances due to the ongoing cutbacks in their allocation.
The Minister for Finance this morning spent some time talking about the Structural Funds. I protest at the manner in which the Government presented their national plan to the European Community in Brussels. There is no real regional development here and the whole question of the allocation of funds that will be granted when specific projects for the regions are agreed in a few months time will be left in the greedy hands of the Department of Finance and there will be no real change.
I await with interest the publication of the operation of programmes which have yet to be submitted to and agreed by Brussels. I will wait with interest to see how the regional plans submitted to Government will be implemented and how moneys will be allocated but I warn the Government that we will not tolerate the allocation of Structural Funds in the same manner in which lottery funds were allocated up to now, not in line with regional needs but on political considerations. I regret that the regional committees which will follow through on the regional plans will, as is evidenced by various replies by Ministers, be effectively controlled by civil servants, representatives of the Minister, and that there will be little input from the regions.
This year's allocation to the Department of the Environment and to local authorities is effectively cut back. Deputy O'Shea referred to the rates support grants. Even though they are up by 4 per cent, because of the cutbacks in recent years local authorities are in extremely difficult financial circumstances. The cutbacks in the rates support grants had to be offset by an increase in commercial rates and in service charges. That again is double taxation.
Cork Corporation have had their rates support grants cut by one half since 1986 from £7.7 million to about £3.85 million for next year. We are in crisis having lost 500 people. We are a classic example of what is happening throughout the country. This year we are faced with the choice of raising domestic or commercial rates again by 6 per cent, way above the rate of inflation and increasing the service charges by up to £6. These charges would apply to people who are already hard pressed. The business people in Cork, the Cork Chamber of Commerce, have made it clear that they cannot take an increase of that magnitude. We can either pass on the charges or refuse to strike a rate. Even though the majority of the members are in favour of charges, they will not tolerate an automatic annual increase. We will find ourselves in crisis at the meeting next Sunday night and we must come to hard decisions by midnight. I warn the Government that they cannot expect local authorities to continue to impose local taxation on business people and householders because of the failure of Government to face their responsibilities. As a result Cork Corporation may be dissolved and the Mayoralty may be removed for the sake of £875,000. I hope the Government will see sense and get us out of our difficulty.
The allocation of £51 million for local authority housing this year will not alleviate the crisis in the local authority housing programme. It is an increase of £12 million. The local authority in Cork, the second city of the Republic built eight houses last year for a quarter of a million people. This is a joke. This year there will be a slight marginal improvement on a very low base. Local authorities are being squeezed and there is very little left.
The environmental protection policy from being a Cinderella topic has become one of the burning issues because of the conflict between industrial development and the need to protect the environment. The statements of Government have not been backed by allocations to the local authorities to carry out their responsibilities in relation to environmental protection. There is much lip service but very little money.
The Minister for Industry and Commerce has been very vocal in recent times in regard to consumer affairs and rights. There has been a lot of hype about the Minister's efforts to protect the consumer, but the words conflict seriously with the actions. I must protest strongly at the failure of the Government to substantially improve consumer protection and at the manner in which offices in the regions, in Cork and Galway, had to be closed earlier this year because of inadequate financing of the Office of Consumer Affairs and Fair Trade.
The situation has become even more serious. I received a letter from the director of that office in reply to a letter I wrote about the closure of the offices in Cork and Galway. The director said that the situation had deteriorated in relation to investigations outside Dublin and that due to a shortage of funds for travel and subsistance no inspections, investigations or other activities are being undertaken if they involve a journey outside Dublin. This would be a joke if it were not so serious. It is the most blatant act on centralised thinking that I have come across in recent times and it leaves the laws in relation to consumer affairs and fair trade totally open to abuse outside Dublin.
The Merchandise Marks Acts, 1970 and 1987, the Restrictive Practices Acts, 1972 and 1987, the European Community Regulations regarding labelling and pricing of foodstuffs, the labelling and naming of textile products, the Industrial Research Act, 1961, the Hire Purchase Act, 1960, to which a lot of lip service has also been paid, and the Prices Acts, 1958 and 1972, are all open to abuse as the Office of Consumer Affairs cannot act effectively because of inadequate funding.
A Leas-Cheann Comhairle, I should have mentioned that I would like your permission to share my time with Deputy Cotter.
We should get the agreement of the House on that. I presume you propose admitting him before your time expires?
Yes.
Is that agreed? Agreed.
Thank you. In relation to the financial allocation to the Cork/Swansea ferry service I welcome the recent Government decision. I would like this opportunity to put on record my objection to the recent statements by my colleague, Deputy Dennehy, when he accused another colleague Senator Avril Doyle, of objecting to the allocation of that money. No such statement was made by Senator Doyle and Deputy Dennehy should retract his statement. It was incorrect and inaccurate.
There has been an increased allocation in the Health Estimate this year but it is like pouring water into a leaking bucket because the fundamental problems afflicting the health services have not been tackled. The report of the Commission on Health Funding was published. It is a lengthy document and contains important and far reaching recommendations. Now the Minister tells us he has to consult; the health services are in deep crisis and are going into deeper crises, and here we have a Minister fiddling and fumbling and putting off making difficult decision, a Minister who is afraid to face up to the vested interests in the service who do not want change. I wonder if it is because Minister is a doctor that he is afraid to take on the groups who are opposing change. If we do not face up to the fundamental problems of the health boards, the common contract, the efficiency controls there should be within our hospital services, whether we should have a national hospital committee dealing with the direct funding of hospitals, then we may as well be pouring water into a leaking bucket so far as this Estimate is concerned. All these issues have not been dealt with and, therefore, the allocation that has been made will not pull the health services out of crisis. The poor and under-privileged will continue to suffer because of the failure of the Gvernment.
I will conclude by referring to the protest outside the Dáil yesterday in relation to the cutbacks in overseas development aid. I fully support the group who made that protest. They did it in a very dignified way. I do not have time to go into the issues here this evening, but I would ask the Government, for God's sake, to do something substantial in relation to what is happening in Africa at present. The sum of £100,000 would not get the Jumbo jet that should be travelling to those areas with foodstuffs and technical aid off the ground. In three or four months time it will be too late. I am appealing to the Government to substantially increase the aid that is required there.
Because of time pressures, I will now give the remaining time to my colleague.
If the House would bear with me: Deputy Cotter, you would have four minutes now and three minutes when we would resume. Maybe the House would agree that you would have your seven minutes now. It would be better than having the Deputy come back tomorrow for three minutes. Is that agreed? Agreed.
You are very kind. Obviously with the time given to me, I will not be able to have a very wide ranging look at the content of the Minister's speech this morning or at the Book of Estimates. However, I must deal with the problems that I see in my own area which have not been addressed and which will not be addressed unless we bring pressure on the Minister.
I represent the Border constitutency of Cavan/Monaghan. Last weekend I had a meeting with representatives of the traders of Clones, a small town situated right on the Border. Because of its location the traders in Clones have, for years, felt the cold draught of unfavourable trade winds. This week, indeed, the draughts have got far cooler and are blowing far stronger.
Those who are involved in the delivery of goods and services in Clones are facing bankruptcy and devastation this week. Their customers have abandoned them and are travelling across to what is locally called the golden mile and buying their goods and services there because they are cheaper. While other towns are experiencing the happy bustle of pre-Christmas shopping, the traders of Clones will be standing alone in their shops. It will be as if they had been struck down by a disaster, and of course they have. The plight of the business people in that town is nothing short of disastrous. I put it to the Minister that if there was serious flooding in Clones, as we have seen in other parts of Ireland from time to time, or if there was some other natural disaster the Government would immediately move in and provide aid to the victims of the disaster.
There is, in fact, a disaster in Clones at the moment which is a little imperceptible in the sense that it is not a great physical phenomenon. It is almost certain that the punt will reach parity with sterling very shortly and I wonder if the Clones people have projected beyond that what will happen, for example, if it goes beyond parity. Is it not a possiblity that the punt could be valued at, say, £1.05 sterling sometime in the New Year?
I am now calling on the Government to respond to the disaster in the Clones area. The business community there must be given a lifeline. I am proposing that the Government put in place immediately a plan of action. The Minister for Finance should cancel VAT for the retail trade in Clones. If he were to do that the business community would be able to pitch their prices at a competitive level locally and the town would be able to return to something near normality. I will have to pursue that with the Minister next week and I have promised people who represent the traders in Clones that I will do that.
With regard to the Estimate for the Department of Social Welfare, I am extremely concerned at the attitude of the people who deal with the public in respect of payments that people apply for through the Department. They have no doubt been told by the Minister and the staff in the Department to be very careful about the way they make their payments to people looking for assistance. However, I think they have gone somewhat over the top. They are adopting a very stringent, harsh attitude and, of course, they are adopting it not selectively but right across the board. When you consider the people who have to, so to speak, go on their knees and approach an officer for assistance you can imagine they would not be the most argumentative in the world or the most confident group of people you would meet. In many of my clinics I find they are suffering great hardship as a result of the attitude of those who deliver the service. Of course, you must ask whether it is possible to apply a rigorous budget in an area like this.
Debate adjourned.