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Dáil Éireann díospóireacht -
Wednesday, 14 Dec 2005

Vol. 612 No. 3

Adjournment Debate.

Corrib Gas Pipeline.

I am grateful to be able to raise this matter on the Adjournment. There are two reports which are quite damning of the Corrib gas pipeline, namely, the recently published Advantica report and the report of the Centre for Public Inquiry, published by Mr. Richard Kuprewicz.

The latter report by the CPI revealed that the disputed pipeline carries a real and substantial risk of failure because of its potential to operate at extremely high pressures. The likelihood of system failure increased also because of the unknown gas compositions it is required to carry and the probability of internal corrosion. As a result of these findings the report concludes that the current proposed route is unacceptable because of its close proximity to people and dwellings.

The pipeline has a uniquely large rupture impact zone with potential for high fatalities. There are too many unknowns regarding the future operation of this pipeline, especially in the areas of gas pressure and gas composition that can lead to failure. The thick-walled pipe specified for use is not invincible to leak or rupture. The proposed pipeline will transport gas at high pressure in a raw state, containing metals and radioactive gases. There is compelling evidence to suggest that internal corrosion of the pipeline is likely. The maximum pipeline pressure has not been clearly demonstrated or documented and this is a grave deficiency. Difficulties with locating the gas processing plant offshore have been overstated, and routing analysis for the onshore system are seriously deficient.

The Advantica safety review also raises serious issues on the advisability of proceeding any further with the Corrib gas project as outlined. The value of Shell's qualified risk assessment, QRA, and other material relied upon by those who claim this unique and exotic pipeline is safe is called into question. This report also validates the position of the Rossport five who spent 94 days in Clover Hill Prison over their objections to this pipeline. The report admits to its limited terms of reference regarding its alternative project design options and alternative pipeline design. Yet, ostrich-like, it seems to be accepted by the Minister that the project can proceed if certain things are done.

The report failed to specify minimum safety distances from the pipeline, as clearly specified by Mr. Richard Kuprewicz of Accufacts and the report by the CPI. Instead, the draft report tries to accommodate the Corrib gas pipeline shortcomings by suggesting that the pressure be reduced to 144 bar from 345 bar. This is the equivalent of trying to get a square peg into a round hole. Even the report questions whether this is possible. If this were possible, I doubt if anyone would trust Shell or its partners to ensure a safe pipeline pressure over time. Shell's record in dealing with communities in Nigeria, Russia and elsewhere hardly engenders confidence in its ability to protect rights and the safety of local people. How can Shell be trusted when it illegally welded a 1.5 km section of pipeline?

I demand that the Government face up to its responsibilities. I ask the Minister for Communications, Marine and Natural Resources to honour his ministerial responsibility by insisting that the Corrib gas project not go ahead as planned until it can be brought to safety. We all knew what was coming with the Advantica report. We knew that the Government forbade Advantica to inquire into the real safety questions, such as the production concept used by Shell, the route of the pipeline, the design of the pipeline and the real consequence and human casualties of the pipeline exploding.

The Advantica report ridiculously assumes that pensioners, women and children escaping a gas fireball or explosion can run 100 metres in 40 seconds and that the fields around Rossport have 20% in-built shelter. It also assumes that 90% of people can get out of a house, which is ridiculous as infants, small children and many old age pensioners sleep for part of the day. To assess that the pipeline has been designed to meet or exceed best international standards is nonsensical.

The Advantica report was set up as part of the Government and Shell strategy of persuasion, but it has not worked. It has had quite the opposite effect and people are as determined as ever that this pipeline will not happen as planned. The key recommendation of Advantica — that the pipeline pressure be capped at 144 bar — is just not possible. It cannot be technically guaranteed. As the Accufacts report made clear, no pipeline is impervious to failure and no valve can be a failsafe design. It is obvious that the two reports do not allow the Minister to give consent. To give consent would be reckless when there is a real danger here. The Minister must insist that Shell returns to the drawing board and reconfigures the entire Corrib gas project.

I will take this debate on behalf of the Minister.

The Deputy asks if the Minister still intends to proceed with the Corrib gas pipeline. The Minister is not developing the Corrib project. Shell E&P Ireland is developing the project on behalf of the project partners. Whether or not the project proceeds is primarily a matter for Shell. The Minister has worked tirelessly to address the concerns of all, in particular the local community, with regard to this project. The Minister instructed that a comprehensive review of the health and safety aspects of the proposed Corrib gas onshore pipeline be undertaken in July 2005. Advantica was appointed in August and commenced work on 1 September 2005. Two days of oral hearings were held under the chairmanship of Mr. John Gallagher SC on 12 and 13 October 2005. The Department published the draft report of the safety review last Thursday. This report is now being studied by the developers and other concerned parties.

After 22 December, the authors, Advantica, will consider any comments received by that time and will proceed to prepare their final report. Following receipt of the final report, the Minister's technical advisory group will make recommendations on the project to the Minister and he will make his decision based on these recommendations.

The draft consultants' report makes a number of recommendations which Shell is considering. Only if Shell decides to implement those recommendations and any others which the Minister may impose on the company following advice from his technical advisory group is it conceivable that the project, as then configured rather than as currently proposed, could receive consent to proceed. The consultants' report in its current draft states that the pipeline as proposed has been designed to meet or exceed appropriate standards and to best national and international practice. Advantica also states that safety considerations were properly taken into account during the design stage. The draft report makes a number of very specific recommendations for the construction and operation phase of the pipeline.

There are other inaccuracies in the Deputy's statement. Advantica's report does not state that the design pressure cannot be tolerated; it states exactly the opposite. It then goes one step further by stating that limiting the operating pressure to 144 bar will greatly increase safety for local people above the design level which itself exceeded the international norms. The feasibility of the reduction to safer levels of pressure is not questioned in Advantica's report. Advantica does not detail how this should be done and it shall be for Shell to submit proposals for achieving this should the company decide to proceed with the project and for the Minister to have these evaluated. The Advantica report finds failings with the documentation dealing with valve control systems, and so it was not demonstrated to Advantica that satisfactory designs exist. Shell has to provide such satisfactory evidence. The absence of satisfactory documentation does not lead us to the conclusion that it is not feasible to achieve the appropriate pressure reduction. The Minister fails to understand why the Deputy has made a connection with the damaged facility in Hertfordshire in England. This was an oil products storage facility, not a refinery, as the Deputy stated. It was not a gas installation. Shell's only interest in it was that its products were stored there in the past. Does the Deputy seriously mean what he has implied in his wording "...considering the refinery explosion in Hemel Hempstead in which Shell was involved also"? Does he seriously mean to imply that Shell was somehow involved in the explosion? I will give him the benefit of the doubt on this occasion, but this is just another case where ridiculous efforts have been made to try to establish the most tenuous of links between various parties and Shell.

Shell owned some containers there.

There is more to be said on this matter and the time for that is when the final report of the consultants has been received. In the meantime I hope the Deputy will give serious consideration to the detail in the draft report and provide considered responses rather than alarmist and inaccurate "off the cuff" remarks.

The report merits time and study, and I commend it to Deputies and other interested parties for full consideration. It is extremely thorough work and has looked into matters in much greater detail than heretofore. The Minister welcomes the work, which has been carried out to investigate the relevant safety issues, and hopes that people can take a much more informed view about this project. The Minister, Deputy Dempsey, welcomes input from interested parties during the period of public consultation up to 22 December 2005.

The Minister of State should read the report.

Job Losses.

I thank the Ceann Comhairle for allowing this matter to be raised and I thank the Minister of State for being here.

The decision taken by the company, SP Wine Products Limited, to close its plant in Easkey, County Sligo, is a massive blow to that community. This will be felt in particular in the whole region of west Sligo. The north west has been dealt several severe blows in recent months. Tractech closed its plant in Sligo recently with the loss of 122 jobs and three months ago Hospira closed its plant in Donegal. The loss of so many jobs is a significant blow to the entire region. In Easkey, however, the SP Wine Products decision means that 31 people will lose their jobs, the equivalent of 300 jobs in the greater Dublin area.

This is a close-knit community where the company has operated since 1996. SP Wine Products makes bottle opening devices and tableware and is a subsidiary of Le Creuset, a successful company worldwide. It is never a good time for workers to hear that their employer is packing up and leaving the country, but it is particularly difficult at this time of the year. SP Wine Products is a very important employer for Easkey. I am not sure what the Minister of State can do, but perhaps Enterprise Ireland as well as the special task force for the enterprise boards might be able to encourage the company to reassess the opportunities on offer. I know it is looking at lower cost opportunities elsewhere. It is, perhaps, an indictment of the high cost of jobs in Ireland that companies are locating to lower cost countries. We cannot sit idly by, however, and watch jobs leave. This is a major loss.

This company is the biggest employer in west Sligo. The entire coastal community around Easkey very much welcomed this development in 1996 and it is regrettable that the company no longer finds it profitable to continue employing people in the region.

The high cost of doing business in Ireland is steadily increasing with added stealth taxes. The Government will have to look seriously at the sustainability of manufacturing jobs in the west. Quite a number of manufacturing jobs still exist there and there must be more incentives to encourage employers to remain. SP Wine Products is similar to Tractech, with its competitors moving to low cost manufacturing centres greatly influencing its decision.

I am confident that the Minister of State, Deputy Killeen, is aware of the difficulties of small companies since they form the backbone of the successful Irish economy. The loss of jobs in the north west has been quite startling in recent times. Figures released yesterday show that one in four people in the north west is living on the edge of poverty compared to a national average of 19%. The Government must work harder to keep companies in Ireland and we must do more to develop the north west. As regards Enterprise Ireland, the Western Development Commission and all the statutory authorities, hopefully some encouragement will be given as regards incentives towards retention of those jobs in this region.

There are difficulties when it comes to profitability and most companies are driven by the bottom line. The Government is in the business of giving incentives to companies to set up. The high cost base, however, and the competition elsewhere in the world tend to drive the marketplace in a different direction. I hope in light of the Tractech announcement and now SP Wine Products in Easkey, the Minister of State can offer some possibility of a reassessment of the situation. With the involvement of Enterprise Ireland and IDA Ireland, perhaps there could be a meeting with the management of the company so that it might be persuaded to reconsider its decision and hold on to those valuable jobs in Easkey.

I thank the Deputy for raising this matter. On 13 October 2005, the company in question wrote to the Minister for Enterprise, Trade and Employment saying that the plant in Easkey would close over the next three months. As a result of this, the company would make 31 people redundant on a phased basis with the first job losses occurring on 11 November 2005. I understand that the decision to close was taken with considerable regret by the company.

The decision was particularly difficult as the company felt it had established an excellent team of workers with a strong service ethic. The directors.were particularly impressed with the commitment and hard work of the employees and said that they would work with them to help them gain alternative employment. The full services of FÁS will be available to the workers if they wish to avail of them. Up to the end of last week, almost half of the workers had been interviewed by FÁS officers and the remainder are being interviewed this week.

The company has been involved in manufacturing in Sligo since 1996. However, it has experienced four years of difficult trading conditions. Unfortunately, the business is now uneconomic, leaving the directors with no alternative but to cease trading and close the company. The loss of 122 jobs at the second company was discussed on the Adjournment in the Dáil on 22 November 2005. The jobs losses in both Sligo companies are of concern and the Government is doing all in its power to create structures through its enterprise development and training agencies, which will facilitate those who have lost jobs to gain new ones, particularly ones that offer more opportunity in terms of skills and permanence.

Ireland has a predominantly modern manufacturing base which competes in a range of growth sectors. However, as with most other European countries, there are areas of activity in which Ireland's competitiveness is being seriously challenged. In the main, these are in areas where the availability of lower cost locations is making cost the primary driver behind business decision-making. Indeed, the company in Easkey has cited the movement of its competitors to low cost manufacturing centres as one of the main reasons for its decision to close. It is inevitable that the investment decisions of some companies will be influenced by the competitive attractions of alternative geographic locations.

Our focus is firmly concentrated on managing the current transition with the best possible blend of policies to strengthen both national and company level competitiveness. The industrial development agencies are making every effort to secure alternative employment for Sligo. IDA Ireland is promoting County Sligo to potential investors on an ongoing basis and every effort is being made to secure further industry by progressing the development of a knowledge economy in order that the region can compete both nationally and internationally for foreign direct investment. The agency is also working with its existing client base to expand its presence in the county.

To support the strategy of moving to a more knowledge based economy, IDA Ireland is working closely with educational institutions in the Sligo region to develop the skill sets necessary to attract high value added employment to the county. The agency is also working with FÁS to provide guidance in developing the skill sets needed by those in the workforce who are interested in upskilling. As part of the transition to repositioning the county to a more knowledge based economy, IDA Ireland is marketing Sligo as a key location for investment in the pharmaceuticals, chemicals, medical technologies, engineering, consumer product and financial services sectors.

Recent job announcements include Abbott Ireland, which is to add 350 new jobs to its existing diagnostics facility there, and the consumer telecommunications company IDT Toucan, which will create 300 new jobs at its customer service centre in Sligo. Since the beginning of 2002, Enterprise Ireland has approved over €3.4 million in support to its client companies in County Sligo and made payments of over €2.4 million. In the same period, Enterprise lreland has approved support of over €1.2 million for third level-industry partnerships with the Sligo Institute of Technology to encourage the adoption of new technologies by industry.

I assure the Deputy that the State development agencies, including the local county enterprise board, under the auspices of the Department of Enterprise, Trade and Employment, will continue to work closely together and with local interests in promoting Sligo for further job creation and investment.

Water and Sewerage Schemes.

I thank the Ceann Comhairle for allowing me the opportunity to raise this matter.

The delay in completion of a number of sewerage schemes in County Clare, among them the Scarriff, Feakle, Quilty-Mullagh, Labasheeda, Cooraclare and Carrigaholt schemes, is part of a trend in rural Ireland where development grinds to a halt, homebuilders are put in a limbo and everything remains at a planning stage because of the failure by the Government to instil a sense of urgency in such projects. I ask the Minister of State at the Department of the Environment, Heritage and Local Government, to give a firm date on when such projects will go out to contract. These schemes are but the tip of the iceberg of the need for proper 21st century wastewater treatment schemes to be installed in the towns and villages of County Clare.

According to Clare County Council, the €13.4 million Labasheeda, Cooraclare and Carrigaholt schemes are due to start next year, along with a number of other schemes in Ennistymon, Liscannor, Miltown Malbay, Spanish Point,O'Callaghan's Mills, Bodyke, O'Brien's Bridge, Flagmount, Cratloe and the Shannon town scheme. If this is the case then 2006 will be an auspicious year for wastewater treatment in County Clare.

I doubt if this will happen. I ask the Minister of State to give me some commitment on which schemes will commence in County Clare in 2006. Currently ten County Clare towns and villages, including the county town of Ennis, are behind schedule on various sewerage projects. The Scarriff, Feakle, Quilty and Mullagh schemes, costing approximately €12 million, were due to start last year. According to the same timetable, the Doolin, Ballyvaughan and Corofin sewerage schemes were due to start this year at a cost of €17 million, along with other schemes throughout the county.

I understand that with regard to the Scariff, Feakle, Quilty and Mullagh sewerage schemes, the preliminary report had been approved by the Department and consultants were to be appointed to prepare contract documents to allow the schemes proceed to construction. Have the contract documents been prepared and if so, when will construction commence on the Scarriff, Feakle and Quilty scheme?

The preliminary report for the Doolin, Ballyvaughan and Corofin sewerage scheme has been approved by the Department and consultants were to be appointed to prepare contract documents to facilitate their construction. Have the contract documents been prepared and when will the contract go to tender?

There is welcome news that the Lisdoonvarna and Ballyvaughan scheme is ready to go to tender. The Minister of State must be well aware of the net result of this chaotic situation which exists in large sections of County Clare. This stifles development, creates disproportionate investment in our already congested towns and makes a mockery of the national spatial strategy. The Minister of State may regard the expenditure on some of the smaller schemes such as those to which I have referred as representing a poor return on infrastructural investment. The Minister of State, Deputy Batt O'Keeffe, implied as much on a recent visit to the county when he compared the cost per unit of wastewater facilities in villages and in large towns and cities. This is an unfair and invalid comparison.

We either have a national policy on housing and rural development which includes a spatial strategy or we do not. I can assure the Minister of State that investment in our towns and communities will pay dividends in the long run. I am aware of the problems people encounter when trying to build houses in these areas. The county council will not give permission for these houses because the proper sewerage schemes are not in place. It is a hindrance to planning, for instance, in Labasheeda. This beautiful village on the estuary could be another Doolin if it had a proper sewerage scheme and the same can be said of Feakle, where a health problem exists.

We are told there is money available. I urge the Minister of State to fast track these schemes in 2006. There is a pollution problem in the Shannon estuary and there is a risk to the freshwater lakes and streams which will affect the blue flag status of many of the county's beaches. This sends the wrong message to tourists at a time when the west in general is struggling to attract tourists.

In the flurry of paperwork between the county council and the Department, there seems to be an unyielding attitude at Government level that takes a great deal of time to eventually wear down. Statistics show that 283 private houses in County Clare had no piped water supply and 461 do not have the benefit of sewerage facilities. The policy relating to these projects must be overhauled as they are essential for balanced regional development.

I thank the Deputy for raising this matter. The Scarriff, Feakle and Quilty sewerage scheme, which includes Mullagh and the Carrigaholt, Labasheeda and Cooraclare scheme are being procured as two separate group projects. They are approved for construction in my Department's Water Services Investment Programme 2004-2006 and are part of a package of more than 20 water and sewerage schemes, serving almost 40 different areas in the programme for County Clare with a combined value of nearly €194 million. Clare County Council's contracts documents for the Feakle, Scariff, Quilty scheme are with my Department for examination. The council has also submitted an updated preliminary report for the Carrigaholt, Labasheeda and Cooraclare scheme to the Department.

To allow the contract documents for the Scarriff, Feakle and Quilty scheme to be fully examined, my Department asked the council in February 2005 to submit a revised water services pricing policy report. The importance of this report was pointed out to the council since it plays a critical role in determining the overall economics of all water services schemes being funded by the Exchequer.

The water services pricing policy report sets out the proportion of the cost of a scheme that has to be funded by contributions from the non-domestic sector in accordance with "the polluter pays" policy. Broadly speaking, that policy provides for the capital costs associated with the provision of services to meet the requirements of the existing domestic population being funded by my Department, with an allowance for organic growth. The additional marginal capital cost of servicing non-domestic consumers, and providing for future development, is recovered by the local authority from all non-domestic consumers in its functional area through a combination of water charges on commercial consumers and planning levies on future development.

A preliminary assessment by my Department at that time indicated the likelihood of excessively high costs of servicing individual dwellings in the three locations. The cost per house in Feakle would have been €33,134; in Scarriff, €18,587; and Quilty, €56,410. On that basis it seemed unlikely that the scheme would be economically sustainable, unless a significant proportion of costs were appropriately attributable to the non-domestic sector with a resulting significant reduction in the cost of the domestic share of the scheme. In this context it is worth noting that a householder can provide a proprietary single house treatment system at only a fraction of these figures and this is the yardstick by which the installation of sewerage facilities from the public purse has to be assessed. In disbursing Exchequer funding, my Department has to be conscious of value for money principles. It cannot approve a scheme where the costs simply cannot be justified by comparison with other potential solutions.

Clare County Council responded to the Department in June when a revised water services pricing policy report and economic assessment were received. These have been examined in the Department but the revised unit cost per existing house to the Exchequer, after deducting the amounts estimated by the council to be due from the non-domestic sector, is €19,725 in Feakle; in Scarriff €12,307; and in Quilty €27,549. In the case of the Carrigaholt, Labasheeda and Cooraclare scheme, following examination of the preliminary report, the Department wrote to the council in November 2004 outlining a number of issues that needed to be reviewed. Of particular concern again was the high average cost of serving each house to be connected to the scheme. The cost per house in Labasheeda would have exceeded €83,000 with equivalent costs in Cooraclare and Carragaholt of €53,000 and €74,000, respectively.

Clare County Council responded with a revised preliminary report and water services pricing policy, polluter pays, report in May. In view of the figures emerging from the proposals put forward to my Department, a new more innovative approach will have to be adopted by the council to come up with schemes that can be provided at more acceptable costs to the public purse. Both my Department and I are anxious for an economical solution to be found. Against that background the Department wrote to the council about both schemes last week. The Department pointed out that the schemes, as currently designed, were not economically sustainable but emphasised that it was keen for the council to come up with alternative, financially viable proposals.

Social and Affordable Housing.

I thank the Ceann Comhairle for the opportunity to raise this issue and I thank the Minister of State for coming into the House to reply to it and for his courtesy in bringing me up to date on this important project.

In 2003, Teagasc made available 15 hectares of land, approximately 38 acres, to Cork County Council to allow it build a housing scheme for the benefit of people in the affordable housing category. People in the west Cork area, in particular in the Clonakilty region, were very happy with this because they saw the opportunity of being able to afford a house of their own. Commercial housing in west Cork is prohibitively expensive. A site, for example, costs anything up to €250,000 and an ordinary three or four-bedroomed house costs from €500,000 to €750,000. If a house overlooks the sea, it costs in the region of €1 million. Young people cannot afford this kind of money. Even two people with relatively good public service jobs could not afford that kind of mortgage.

One might well ask what has happened with this gift to the council. Two years later, it seems that relatively little has happened. People, including myself, are extremely frustrated with the lack of progress. Clonakilty is a thriving town which has a superb business and technology park that employs approximately 450 people and is projected to employ 1,000. However, there is a shortage of affordable houses in the area.

Will the Minister inform me of the position on this scheme? The affordable housing scheme is attractive and inspired and I laud it. I am delighted all the social partners support it. Why is there lethargy in regard to this extremely laudable project and why is there such procrastination in its regard? I want the Minister of State to inculcate a sense of urgency with regard to this project. Will he take a personal interest in the matter?

With regard to the actual housing scheme, I ask that some flair and creativity be put into the project. We want a nice rural village in this location, a place called Darrara out by Ring village and about three miles from Clonakilty town. It would be nice to have some green areas and some playing pitches etc. We do not want intensive housing or high density old Ballymun-type development in the heart of what is a beautiful rural area. There is already a school and a church in the village, so it lends itself to a suitable village type proposal.

Will the Minister of State provide an update on this project and a timescale for the commencement and completion of work so that young people eligible for this category of housing can aspire to have their own homes, at least some time before the end of this decade. Judging by the rate of progress so far, we do not know when we will see the development of the project. I look forward to hearing the Minister of State's up to date report on the matter.

I thank Deputy Walsh for raising this matter. As he knows, the affordable housing initiative was one of the ten special initiatives in Sustaining Progress. The Government is committed to delivery of affordable housing under this initiative. No doubt, the House is aware that progress is being made on the initiative and Part V affordable units are an important contribution to it. Approximately 70 projects on State or local authority lands are planned. It is projected that these projects, together with some 2,500 affordable units under Part V, will deliver 10,000 units.

As Deputy Walsh said, in December 2003 a site at Darrara agricultural college in Clonakilty was proposed by him as Minister for Agriculture and Food and agreed by Government for inclusion in the initiative. As Minister of State with responsibility for housing I acknowledge this and the other sites put forward by him as Minister. The number of housing units to be provided on this site, which is approximately 15 hectares, will be dependent on feasibility and other studies and the planning process.

As the Deputy is aware, the State lands made available for the initiative are transferred to the relevant local authority which is responsible for developing and progressing the projects. This is how matters are dealt with outside of Dublin. Within Dublin, the affordable homes partnership has responsibility. In this case, it is up to Cork County Council to plan and develop the project in a sustainable manner. The council has established an in-house technical group to progress the project.

There has been some progress on the site since it was released to the initiative. A comprehensive feasibility assessment on the site was carried out in the context of strategic land use planning, financial viability, affordability and suitable infrastructural solutions. The feasibility study was approved by Cork County Council on 30 September 2005. Following this, public consultation took place in October 2005, culminating in a council decision to initiate the process to amend the local area plan in order to facilitate the construction of the affordable housing units.

I understand the consultant planners engaged by Cork County Council have been preparing the necessary documentation to advertise the amendment of the local area plan. This will now be examined by Cork County Council and the intention is to advertise the amendment of the local area plan after Christmas. Commencement of construction on this site now depends on the outcome of the planning process.

I understand and share Deputy Walsh's frustrations with the delay. I get complaints in this regard about all the sites offered under this initiative. Developers constantly remind us that from the time they put their eye on a site, it can take up to four years before work can commence. The planning process is frustratingly slow and detailed. I understand that while this site is a couple of miles outside of Clonakilty, the county council has gone about the issue in a professional way, although this may appear slow. I hope when the amendment to the plan is advertised early in the new year rapid progress will result and the changes to the plan will go through without local objections.

The Dáil adjourned at 11.10 p.m. until 10.30 a.m. on Thursday, 15 December 2005.
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