Dáil Éireann díospóireacht -
Tuesday, 10 Feb 2004

Vol. 579 No. 4

Adjournment Debate.

Disabled Drivers.

Mr. McCormack

Since the early 1990s many voluntary organisations have made representations to the Department of Finance regarding the Disabled Drivers (Taxation Concessions) Regulations 1989. The Minister for Finance established a review group in 1997 to take submissions and report to him on the matter instead of making a decision on these representations. The scandal is that seven years later the report has not been published.

I have tabled several parliamentary questions on this matter. The group reported to the Minister in October 2002, but a year and a half later he still has not published the report or made a decision on its recommendations. He has given no indication about what he will do in terms of the recommendations. I have raised this issue in letters to the Minister and through parliamentary questions on many occasions over the past five or six years. I received another useless reply from the Minister today, which stated:

I wish to acknowledge receipt of your recent letter regarding the disabled drivers' and disabled passengers' tax concessions scheme. I will be in contact with you again on the matter as soon as possible.

The report of the Commission on the Status of People with Disabilities, entitled A Strategy for Equality, was published in 1998 and was endorsed by all political parties. It welcomed the Finance Act 1996 amendment, which reduced the cost of motor vehicle adaptation from 20% to 10% of the motor vehicle for disabled persons. The commission further recommended that the percentage should be reduced to zero over the next three years and it acknowledged that a car was essential for many people with disabilities. Eight years later, nothing has happened in that regard.

I refer to adapting the car for a disabled driver or passenger. To qualify for the tax rebate the disabled car owner must spend at least 10% of the net cost of the car on adapting the vehicle. This amounts to approximately €1,600 for an average car. The regulation results in an unnecessary rip-off of disabled people. Practically all of them can enter or exit a motor vehicle with limited physical assistance through the use of a simple bridge board supplied by health boards, thus avoiding the necessity of installing a swivel seat. However, if they are to qualify for the remission of VRT and the repayment of VAT on the cost of the car, the cost of adaptation must be at least 10% of the base value of the motor vehicle and because of their limited income and circumstances, disabled people cannot afford this if they do not qualify for the tax rebate.

The criteria for qualification for the tax concession should be based on strict medical certification of an applicant's degree of disability and on disability alone. They then would not be required to incur the cost of adaptation, which is 10% of the base value of a motor vehicle. That bears no relationship to the disability nor is it of assistance to the disabled passenger. I appeal to the Minister of State to ask the Minister for Finance to publish the report and outline whether he will adopt the necessary recommendations in it.

The disabled passenger or his spouse, who might be a full-time carer, is issued with a free travel pass, courtesy of the Department of Social and Family Affairs, even though the Department knows a disabled passenger cannot avail of bus services because they are not wheelchair accessible, and they do not exist in some rural areas. They are entitled to the same privileges as able-bodied people but the only option they have is to convert a motor vehicle.

I appeal to the Minister to publish the report and acknowledge whether he will implement the recommendations and abolish this unnecessary and useless provision that 10% of the net cost of a car must be expended on adapting it for a disabled passenger or driver.

Minister of State at the Department of Health and Children (Mr. T. O'Malley)

This scheme, which originated in 1968, provides valuable tax concessions for disabled drivers and disabled passengers. Over time the benefits were extended and the scheme was put on a statutory basis. The scheme is open to persons, drivers and passengers, with disabilities who have obtained a primary medical certificate. To qualify for a medical certificate, the person must be severely and permanently disabled and meet one or more of a number of specific medical criteria relating to the use of upper and lower limbs.

Possession of a primary medical certificate entitles a person to benefit from the following reliefs: remission or repayment of vehicle registration tax, VRT, and a refund of value-added tax, VAT, on the purchase of a vehicle; a refund of VAT on the cost of adaptation of a vehicle up to a maximum of €9,523 for a disabled driver and €15,872 for a disabled passenger; repayment of excise duty on motor fuel used in the vehicle for the transport of the disabled person, subject to an annual maximum of 600 gallons — this works out at approximately €1,016 per annum at current excise rates; and exemption from the payment of annual road tax payable to local authorities. Annual ongoing relief also includes the possibility of changing a car every two years. The same tax reliefs are also available to qualifying organisations for qualifying activities, that is, the transport of those disabled who are covered by the scheme.

The cost of the scheme has increased significantly in recent years. It amounted to approximately €36 million in 2003, compared with just under €6.5 million in 1996. It is estimated that 8,750 people with disabilities participate in the scheme. The average claim for VRT and VAT relief amounts to approximately €5,250. This is what it is worth, on average, on an annualised basis to an individual beneficiary.

The Minister for Finance has been informed that up to 360,000 persons in Ireland could be regarded as disabled. These include persons with medical conditions other than those covered by the scheme and those with medical conditions covered by the scheme. The substantial tax benefits of the disabled drivers and disabled passengers scheme make for considerable interest in, and desire to be admitted to, the scheme.

The scheme was reviewed by an interdepartmental review group chaired by an official from the Department of Justice, Equality and Law Reform. In addition to representatives from that Department, the group comprised representatives of the Departments of Finance, Health and Children and Social and Family Affairs and the Office of the Revenue Commissioners. The group was convened to review the operation of the scheme following a meeting in April 1998 between the Ministers for Health and Children and Finance and the Minister of State to discuss problems with the operation of the scheme. The group examined all aspects of the scheme, including the qualifying medical criteria. A copy of the report of the group, containing recommendations for changes to the scheme, was received by the Department of Finance in September 2002.

The Deputy will appreciate that the report of the review group is complex. As part of its deliberations, the group heard oral submissions over a period of five and a half days. In addition, the group received more than 260 written submissions from interested parties. Many factors have been taken into account by the review group in the formulation of this report. The Minister for Finance is considering the issues raised in the context of the objectives to be met and the best use of resources. The issues are difficult and many different, and some conflicting, viewpoints have to be taken into account. It is envisaged the report will be published once the deliberative process is fully completed.

The great interest shown by various groups in seeking access to the scheme is understandable. The benefits are significant on an individual basis. Nevertheless, it is important we review how the scheme can be operated in a fair, focused and manageable manner within available resources for those whom it can most effectively assist. I trust that the House shares this goal.

Mr. McCormack

Why is it taking so long?

School Accommodation.

Mr. Stanton

I thank the Ceann Comhairle for giving me the opportunity to raise this matter. The purpose of this motion on the Adjournment is to ask the Minister for Education and Science to make funding available immediately to prevent sewage contaminated water flooding the grounds of Kilcredan national school in east Cork. This happened recently following heavy overnight rain and resulted in a major health hazard for the staff and students. Unless urgent action is taken, this may lead to the possible closure of the school. I also ask the Minister to prioritise the provision of two extra and badly needed classrooms and associated support rooms at the school.

I stand open to correction but the Minister of State opposite, Deputy Tim O'Malley, does not hold a portfolio at the Department of Education and Science and his job is merely to come to the Chamber and read a prepared statement. This highlights the need for urgent Dáil reform, as stated in the earlier debate. However, I hope the Minister of State will communicate my request to his colleagues in the Department of Education and Science. The standard reply one receives from that Department is that one should check its website. That is not good enough in cases where emergencies occur and where, as in this instance, an urgent need exists.

I reject the criticism that Deputies should not ask questions about schools in the Dáil because all the information is provided on the Department's website. That does not take into account the fact that emergencies occur and that we are obliged to use this mechanism to raise such issues. That is why I welcome the opportunity to raise this matter.

Kilcredan national school was built in 1972. It received almost no assistance or maintenance funding for 30 years. Last year, fortunately, following many representations, some new windows were installed. These were very welcome. There are 219 students in this excellent rural school. The area is growing, increasing numbers of people are moving there and there is a great demand for places at the school.

Last week there was heavy rain and flooding which gave rise to the problem to which I refer, which has occurred on more than one occasion. The problem is that the drainage system cannot take the excess water and the septic tanks fill up and overflow. This results in sewage contaminated water floating in the school yard and its environs. The Minister of State, who holds a portfolio in the Department of Health and Children, will agree that this situation should not be allowed to continue to obtain. I ask him to talk to the officials in the Department of Education and Science with a view to ensuring that action is taken as soon as possible in order to prevent a recurrence. I do not want to have to come before the House to discuss health scares. We want to prevent such events from happening.

The second part of my motion refers to the fact that the school requires additional classrooms. The school is so successful, thanks to its teaching and other staff, that it attracts many students. The rooms are inadequate and small. The authorities at the school have sought additional accommodation for some time. I understand that the last review took place at the school in the 1999-2000 school year. I urge that a further review take place with a view to moving it from stage three in the planning process. I am sure the Minister of State will indicate that it currently stands at this stage and should not move. Things have changed and the school has grown. The Department should review and revise its famous website on a regular basis to take account of changes that occur because of the success of schools.

I again thank the Ceann Comhairle's office for allowing me to raise this matter. I look forward to the Minister of State's reply and ask him to bring the matter to the attention of his colleagues at the Department of Education and Science and request that they take action as a matter of urgency.

Mr. T. O'Malley

I thank the Deputy for giving me the opportunity to outline to the House the Department of Education and Science's position regarding Kilcredan national school, Castlemartyr, County Cork, and the need to address the sewerage system at the school and the provision of additional accommodation.

At present, Kilcredan national school has a staffing level of a principal plus eight mainstream teachers, one resource teacher, one shared resource teacher and learning support. The school had an enrolment of 216 pupils on 30 September last.

The primary responsibility for health and safety issues relating to school buildings rests with the school managerial authorities. To assist school authorities fulfil their obligations, an annual grant is paid to schools under the grant scheme for minor works. This is also known as the devolved grant. The level of grant paid amounts to €3,809 per school plus €12.70 per pupil and was paid last December for the current school year. If the board of management of Kilcredan national school is unable to resolve the sewerage problem through the use of this grant, it should contact the Department of Education and Science to progress the matter.

I am pleased to inform the House that a full design team has been appointed and the architectural design of the major project to provide additional accommodation at the school is progressing. Kilcredan national school is listed in section 9 of the 2004 school building programme which is published on the Department's website. This proposed project is at stages four to five of architectural planning. It has been assigned a band three rating by the Department in accordance with the published criteria for prioritising large-scale projects.

The Department grant aids the rental of temporary accommodation in respect of primary schools requiring interim accommodation to cater for schools awaiting the provision of permanent accommodation. Formal application for such grant aid should be made to the school planning section of the Department on the appropriate form. This form has been forwarded to the management authority of Kilcredan national school for completion. I again take the opportunity to thank the Deputy for raising this issue.

Hospital Services.

Dr. Twomey

I have four specific questions and one general question to put in respect of this matter. If the Minister of State cannot answer the four specific questions, perhaps he would reply to me in respect of them at a later date. All my questions relate to Wexford General Hospital. Before posing them, I acknowledge that certain actions have been taken to aid the hospital, such as an increase in consultant numbers, the medical admissions unit working and doing an excellent job, approval being granted in respect of appointing an accident and emergency consultant and the Caredoc out of hours co-operative working very well in the primary care sector.

The first of my specific questions is when funding to staff the new geriatric day ward will be provided. The ward was built more than a year ago but, unfortunately, is not being staffed at present. The second question relates to the maternity unit, the number of births at which has increased from 1,400 to 1,800. When will funding to employ extra midwives be made available because the staff in the unit are overworked? My third question relates to the medical director, Dr. Paddy McKiernan, who resigned from an implementation committee for an extra 19 beds for Wexford General Hospital. Will these 19 beds ever materialise? My final specific question is whether the Minister will stress to the South Eastern Health Board the importance of appointing the accident and emergency consultant as soon as possible, especially in light of the seriousness of the situation for both doctors and patients in County Wexford.

On my general question, in trying to maintain standards, we must maintain progress. How can we possibly maintain standards at Wexford General Hospital and similar hospitals throughout the country when we continue to rely on the wholly inadequate Hanly report in respect of reform of the health services? This report does not deal with industrial relations issues, and the future of all hospital services, especially acute hospital services, are dependent on such issues.

We talk about transferring workloads from the acute hospitals to the primary care sector, but the primary care strategy has more or less stalled. It is unlikely that general practitioners already working in the primary care sector will be able to cope with the extra workload. The ambulance service will be inadequate in terms of coping with additional journey times if local acute units are closed in any of the 36 hospitals because most ambulance drivers are not trained emergency medical technicians.

They have basic first-aid training. If a drip-line fell out of a patient no one in the ambulance service would be legally covered to replace it. Considering the extra journey times that will result from the proposed reforms of the health service, this is an important issue.

The final issue, which is under discussion at present, is that of consultants' contract. Reform of the health service in terms of the EU working time directive cannot work unless the consultants' contract is changed. This issue is not being progressed.

The Hanly report is being sold to patients in areas such as the one I represent, where we have a general hospital which feeds into an excellent, if under-resourced, regional hospital. I hope the Minister of State will answer these four questions at a later date and comment on the final question.

Mr. T. O'Malley

I thank Deputy Twomey for his questions. Many of the difficulties and delays experienced in emergency medicine departments reflect a system-wide issue such as the demand experienced by each hospital, the resources available to it and the structure organisation and staffing profile of the hospital.

The Deputy will be aware that the provision of services at Wexford General Hospital is, in the first instance, a matter for the South Eastern Health Board. The Department of Health and Children has been informed by hospital management that the situation in the emergency department of the hospital has improved this week. On Monday no patients were waiting on trolleys for admission to hospital. Earlier this morning two patients were waiting for admission and both patients were subsequently admitted. Hospital management and medical and nursing staff are actively working together to deal with the current pressures. I fully understand the demands and pressures placed on staff in these circumstances and their tremendous work is very much valued.

In 2003 my colleague, the Minister for Health and Children, Deputy Martin, provided for the appointment of four additional consultants in emergency medicine for the South Eastern Health Board, one of whom will have responsibility for the accident and emergency department at Wexford General Hospital. The availability of senior medical staff in emergency medical departments should facilitate rapid clinical decision-making and enhanced management, diagnosis and treatment of patients.

The South Eastern Health Board acknowledges, in its 2004 service plan, that there has been an increase of 12% in the population of Wexford since the 1996 census. Based on data supplied by the board to the Department of Health and Children, there has been an increase of approximately 10% in attendances at the emergency medicine department of the hospital in the period January to November 2003 compared with the same period in 2002. Overall admissions to the hospital have also increased in recent years.

Increasing the bed capacity of the acute hospital system nationally is a key priority in improving access to acute services. More than 560 new beds have been provided in hospitals throughout the country under the acute hospital bed capacity initiative. Funding has been provided by the Department to the ERHA and the health boards to commission the remaining beds approved under the first phase of this initiative.

Wexford General Hospital opened ten new medical assessment beds with funding provided under this initiative. Increasing the acute bed capacity of Wexford General Hospital continues to be a priority for the South Eastern Health Board. In this regard, the board has plans for the provision of an additional 19 beds at the hospital. All new capital commitments for 2004 and beyond are being reviewed by the Department of Health and Children in light of the overall funding resources available. The provision of additional bed capacity for Wexford General Hospital will be considered in this regard.

The Deputy has raised the issue of casemix. Under the casemix budgeting system, which is part of the resource allocation process for the acute hospital sector, a positive adjustment of €409,000 has been applied to Wexford General Hospital for the 2004 allocation based on its activity performance and costs in 2002 relative to other hospitals which participate in the casemix system. Casemix contributes towards equity, efficiency and transparency by classifying and categorising hospital outputs. It also creates an incentive for better performance.

Since its inclusion in the casemix programme in 1998 Wexford General Hospital has consistently gained funding, with the exception of the year 2000.

The Department of Health and Children will continue to work with the South Eastern Health Board in identifying the capacity requirements of Wexford General Hospital and seeking solutions to the pressures being experienced at the hospital. I will try to ascertain the answers to the other questions Deputy Twomey has asked.

European Regional Development.

Ms F. O'Malley

The European Commission's ruling on Charleroi begs the question of whether there is coherence in EU policy. On the one hand, competition is a live and vibrant issue within the EU and the cornerstone of commercial viability. On the other is the all-important issue of subsidiarity. The recent judgment on Charleroi appears to place the two in conflict. Is there a lack of joined-up thinking on EU policy?

Subsidiarity came into our lexicon during the debate on the Amsterdam treaty when we became enthused by the notion that decisions would be made within the regions. I offer the arrangement made by the Walloon Government for Charleroi as the classic example of very good subsidiarity and working for a region. At the risk of offending any Walloons who may be listening, I offer a grim depiction of Charleroi before Ryanair's involvement with its airport: "Ryanair's arrival at Charleroi in 1997 and its decision to transform a small and disregarded airport into a European hub has proved a blessing for an industrial city hit by the gradual collapse of its traditional coal and steel activities."

This shows how bad things had got in the area. Local government there was required to solve a difficult situation on behalf of the people. It took the decision to enter into an agreement with Ryanair and has transformed the region. I am sure the Minister of State will agree that if one can get private enterprise to do local government's job one should let them at it, particularly if they are doing it successfully.

I offer the House a quote from a gentleman who moved to Charleroi after the collapse of Sabena in Brussels and who found a job in Charleroi airport after almost a year of unemployment: "Politicians keep producing new plans to create jobs but then they are punishing a company that has provided the lifeblood to Charleroi." These are the people for whom we need to see results.

What is the implication of the judgment? We need only look at our own airports and at regional development within Ireland to see what happens. Regional development has always been based on the fulcrum of accessibility, which is provided by the regional airports. If ever there was an example of how well regional development can be done, it is the involvement of Ryanair with the Walloon Government.

The Commission has ruled and we must look for a positive result of that ruling. The judgment may bring an element of clarity to the market figures for airport costs and the conditions which Ryanair have enjoyed in Charleroi may be endorsed by the Commissioner with responsibility for competition and provided to other operators.

Would any of us have heard of such numbers of people going through Charleroi ten years ago, prior to Ryanair's arrival? We would not because it was an area in decline. The effect of increasing air transport to that area has been phenomenal. The Minister may reflect on this when considering the future for Shannon and other regional airports.

Mr. T. O'Malley

As the Deputy is aware, the European Commission announced its decision on 3 February last on its investigation into a complaint lodged in 2001 concerning financial incentives received by Ryanair from the airport authorities at Charleroi, an airport owned by the local government in the Walloon region of Belgium. The full text of the Commission's decision is not yet available, but in a lengthy press statement of 3 February, the Commission summarised its main findings.

The Commission found that certain elements of the agreement between Ryanair and the airport authorities at Charleroi offended the prudent market investor principle, and therefore a portion of the incentives granted to the airline by Charleroi was deemed by the Commission to be illegal state aid. In general, the Commission objected to a number of elements of the package, including certain discounts on airport charges and reduced ground handling fees, one-off flat rate incentives paid when new routes were launched, and aid provided in respect of routes which cannot be regarded as new.

In its statement last week, the Commission made clear that it supports incentives for airlines to establish new routes provided such incentives are available to all carriers in an open, fair and transparent manner and provided that the duration of such incentives is limited to five years and the overall scale amounts to no more than 50% of the net start-up costs of a new route.

While the full text of the Commission's decision is not yet available, its statement of 3 February does not appear to set out more general ground rules for state-owned airports on an EU-wide basis. The particular conditions and restrictions referred to by the Commission apply only to the Charleroi case. Nevertheless, the basic principles set out in this decision will most likely set a precedent for other state-owned airports in Europe. I am aware that Ryanair is reported as stating that it will study the comprehensive decision when it is available but that it intends to appeal the Commission's decision on Charleroi to the European Court of Justice.

The position of the Minister for Transport on this matter has been, and remains, that the conditions and rules governing incentive schemes deriving either from this decision or from any future formalisation of rules on an EU-wide basis should endeavour to strike a balance between the avoidance of rules which are overly restrictive for airlines and which could have the unintentional affect of restricting or even preventing growth, especially in the low cost sector which has been very important for both Irish and European aviation; and the promotion of long-term airport development by State-owned regional gateway airports, such as Shannon and Cork, which are required to operate on a fully commercial basis and which must be able to grow and earn a commercial return on investment.

The Minister does not anticipate problems for growth and development at our State-owned airports, at Shannon and Cork in particular, arising out of the Commission's decision on Charleroi. By clarifying the parameters for assisting airlines to commence new routes at state-owned airports, this decision may further help both Shannon and Cork to attract new routes, new airlines and more passengers, and grow their business.

The full text of the Commission's decision will need to be carefully examined and reflected upon by the Minister and the other member states. The Minister is aware that, some years ago, the European Commission put forward a proposal for a directive on airport charges, but that proposal never matured. The Minister believes that the member states and the Commission should now take this opportunity to reflect on how the right balance can be achieved between the needs of low-cost airlines and the longer-term needs of airports in the context of balanced regional development. The Minister intends to use the Irish Presidency and the upcoming Transport Council meeting in March to discuss these important issues.

The Dáil adjourned at 10.05 p.m. until10.30 a.m. on Wednesday, 11 February 2004.