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Dáil Éireann díospóireacht -
Wednesday, 14 Oct 2009

Vol. 691 No. 4

Bank Lending Policy.

I wish to share my time with Deputy John O'Mahony.

Is that agreed? Agreed.

We are at a crisis in this situation. The banks have got a guarantee of being bailed out by the Irish taxpayer, but they are not doing enough to bail out businesses, farmers and home owners. I have heard farmers complaining that they do not have enough money to feed cattle, but the banks do not even answer their phone calls. Sometimes cheques to the value of €50 are being returned, while the banks are charging up to €15 for dealing with a bounced cheque. That is happening to tens of thousands of people around the country, but the banks are not showing enough flexibility to secure jobs. I have given the banks a hard time over the years, as well as in more recent times. The banks have been bailed out by the taxpayer, so the Government should ensure that they give support to small and medium enterprises, the farming community and home owners. These are very difficult times, but we will get out of this recession by keeping jobs. It begins and ends with jobs, but not enough is being done because we are in denial.

The elephant in the room concerns the six banks which have been guaranteed by the taxpayer. Three of those banks, including Anglo Irish Bank, are getting in huge deposits because they are giving priority rates, but they are not lending one cent to any business or farmer around the country. I would like to highlight other banks not covered by the Government guarantee scheme, which are also offering rates. I do not mind what is happening but people who deposit money in these banks may not get it back because they are taking money out of the economy. As a country, we have protected banks. Individuals and companies, including major insurance companies, should put their deposits in the three main banks because that is the only way to get money back into the system, although I acknowledge they will also be recapitalised.

I thank Deputy Feighan for sharing time and I commend him on the work he has done and the commitment he made to highlight the necessity of funding for small businesses. Small businesses in my area are under pressure from both sides. They cannot access money from the banks while, at the same time, they are being put under pressure by their suppliers because of the difficult times they are experiencing. Deputy Feighan has continually raised the cheque clearance issue. It is taking longer for cheques to clear nowadays and I know of business people whose cheques have bounced even though they had lodged money in their accounts. That is not good enough.

I met a shopkeeper recently who two years ago applied to the bank for money to upgrade his business and, thus, generate employment. He asked for €50,000 and he was offered €300,000. He was cautious at the time as he wanted to establish whether his figures would hold up and he did not take money. Last week he went back to the bank seeking €50,000 because the figures he presented two years ago had held up but his application was refused. That is also not good enough. Whatever has to be done to free up money for such individuals must be done. We regularly hear reports of companies closing with job losses of between 200 and 500 and so on but we never hear about the loss of one or two jobs in businesses. The individual to whom I refer would have created two new jobs if he had secured his loan of €50,000 because he hoped to provide a new service in his shop.

I was also approached by a farmer who applied to the bank for funds to restock his farm. He had been granted larger loans in the past and he could not keep the money back from the bank but it would not give him the money to restock the farm. I commend Deputy Feighan.

I thank Deputies Feighan and O'Mahony for raising the issue.

The covered institutions financial support scheme, which guarantees the liabilities of the covered institutions, was put in place in September 2008 to maintain the stability of the financial system in Ireland. Without it the covered institutions would not have been in a position to lend to the real economy. However, the scheme did not impose any lending requirements on covered institutions. Both Allied Irish Banks and Bank of Ireland have made explicit commitments on lending in the context of the recapitalisation package announced on 11 February this year. The banks reconfirmed their December commitment to increase lending capacity to small and medium enterprises, SMEs, by 10% and to provide an additional 30% capacity for lending to first-time buyers in 2009. If the mortgage lending is not taken up, the additional capacity will be available to SMEs. AIB and Bank of Ireland have also committed to public campaigns to actively promote small business lending at competitive rates with increased transparency on the criteria to be met.

Building on the banks' commitment to the indigenous venture capital sector, both banks have further committed in excess of €15 million each to new or existing seed capital funds in collaboration with Enterprise Ireland's seed and venture capital programme to further create and develop indigenous enterprise. The banks' funding will be matched as appropriate by funding under Enterprise Ireland's programme and-or by funding from other national or international investors. The supplementary documentation on the National Asset Management Agency issued in September gives details of SME lending by AIB and Bank of Ireland.

Prompt payment is important to underpin cashflow, particularly for small businesses. The recapitalised banks have committed to prompt payment arrangements in future customer contracts, which will involve payment within 30 days and a late payment interest charge on any payments made after 30 days. The Financial Regulator has been monitoring compliance with the above commitments and no issues have arisen requiring attention. The Government has introduced arrangements to reduce the payment period by Departments to business from 30 to 15 days.

In addition, my colleague, the Tánaiste and Minister for Enterprise, Trade and Employment has set up a clearing group, including representatives from the main banks, business interests and state agencies, which is chaired by her Department. The purpose of the group is to identify specific patterns of events or cases where the flow of credit to viable businesses appears to be blocked and to seek to identify credit supply solutions. Businesses have been invited to send details of such credit refusals to a dedicated e-mail contact point at the Department. Although the group cannot act as an appeal mechanism for individual cases of credit refusal, it is charged with seeking to identify credit supply solutions relating to any patterns identified. Information provided by businesses will inform and assist this work.

There was some controversy about the perception of credit availability in the economy. The Government, therefore, investigated the issue through a comprehensive independent review of SME lending from both the demand and supply perspective. This was undertaken in the context of the recapitalisation and was published in July. The review showed that demand had fallen sharply, with the value of new applications for credit down by 42%. Stock of credit remained static, indicating that new credits matched repayments. I understand that in a normal year between 15% and 20% of outstanding credit might be repaid and, therefore, significant lending must take place, even to keep the figure constant. The review, conducted by Mazars, found that refusal rates vary markedly by sector from 6% to 48%, according to the SMEs surveyed. This finding clearly contradicts the allegation of a blanket refusal to lend. Mazars also examined a sample of files where credit was refused and found that, in general, "refusal seemed reasonable in the context of normal commercial and business criteria".

A follow-up review covering the period to September is under way. The institutions covered by the guarantee are monitored by the Financial Regulator on a regular basis and monthly figures for SME lending indicate that substantial flows of credit are taking place, even though activity is down on previous years.

Suicide Incidence.

I thank the Ceann Comhairle for allowing me to raise this issue. I commend the Irish Examiner on its contribution to the debate on this subject and for its advance over the past days. I am drawing from information received at the 13th annual conference of the Irish Association of Suicidology held on 1 October, the theme of which was, Surviving Recession: Promoting Mental Health and Preventing Suicide. The Minister of State was very kind to attend and officially open the conference and to launch guidelines.

Research going back to the 1890s demonstrates suicide and mental illness increase at times of recession. The World Health Organisation, WHO, stated earlier this year: "It should not come as a surprise that we continue to see more stresses, suicides and mental disorders." The director of the WHO also stated: "There is clear evidence that suicide is linked to financial disasters. I am not talking about the millionaire jumping out of the window but about poor people." The potential psychological impact of economic recession on public health is severe. Job loss, job insecurity, job uncertainty, economic strain, loss of income, home repossession and restricted access to credit lead to a reduction in mental well-being, an increase in mental health problems and mental ill-health, increased substance misuse, especially alcohol and drugs, and intimate relationship breakdown and divorce. There is a loss of perceived social worth. There is a loss of purpose and daily structure, reduced social contacts and an increase in social isolation. An increased risk of suicidal behaviour occurs, both non-fatal self-harm and completed suicides.

People who are unemployed are two to three times more likely to die of suicide than those in employment. This high rate is partly because people with psychiatric illness are at a greater risk of losing their jobs. There is an association between unemployment and suicide. However, even among people with no record of serious mental illness, unemployment is associated with a 70% greater suicide risk. Prospective individual level studies show that unemployment has a causal influence on depression and suicidal thinking.

Job insecurity is associated with a 33% greater risk of common mental disorders, mainly anxiety and depression. People with mental disorder are more likely to be in debt than those who have no mental disorder. A United States research document indicates that a loss of income rather than low income was associated with suicidal ideation. In Hong Kong, 24% of all suicides in 2004 concerned people in debt.

Alcohol consumption rises during recessions, and this correlates with suicide. The figure for the 1990s in this country was a 44% increase in alcohol consumption and a 41% increase in suicide.

Analysis of suicide rates in Latvia during a period of massive economic and social change showed that the sudden decline in GDP was associated with a rapid increase in suicide. In Russia, mortality, especially suicide, increased substantially after the economic crisis in 1989.

I put it to the Minister that in times of recession there is a need for the State to respond to this problem. A little over €3 million has been given to the National Office for Suicide Prevention. I put it to the Minister of State that a modest €10 million to meet this crisis is not too much to ask.

I do not want to respond by way of the prepared reply. I acknowledge the major contribution of Deputy Dan Neville to this area. I attended the conference in Limerick to which the Deputy referred and I saw at first hand the huge amount of respect shown to him for his involvement. I want to say that again publicly, and will continue to say it.

Rather than just read out the reply it is important to tell the House that at long last a director has been appointed to drive forward reform on mental health. I am pleased to tell the House that the person concerned is Martin Rogan. I wish him well. Since coming into this Department I have always believed that a director should be in place. It is also important to say that we cannot hang everything on the director's shoulders in terms of driving the reform programme. All of the issues raised by Deputy Neville are relevant also.

The next process is for the director to sit down with the 14 regional clinical directors throughout the State and drive forward the commitments and the recommendations in A Vision for Change. It has been made clear to me in the Department in recent months that people are not satisfied with the pace of reform, and I want to recognise that also.

The next part of the process must be to put together the capital programme to deliver what is contained in A Vision for Change. It is also important to be proactive, and in January I will be coming forward with a national programme on the issue of stigma. I had intended doing that in December.

I will not give a full account tonight but I am pleased to tell the House that I took up many of the points raised by Deputy Neville when I chaired the health committee, which did a review of the high incidence of suicide levels, the subject of this Adjournment matter.

I accept the point that when we compare the investment in the reduction of suicide levels, and this point has been made by Deputy Neville and many others, to the funding allocated to the road traffic area, for instance, it is obvious that the level of funding is not the same. I have put a proposal before Government for the forthcoming budget on the issue of trying to determine how we can best use the funding of €4.5 million that is currently available; an additional €1 million was dedicated. It is also important to tell the House that on Monday last I was in Trinity College dealing with young people who brought forward their proposals on being more aware of their mental health and mental well-being. I intend involving all of the local radio stations and local print media in a direct localised campaign to deal with the issue of stigma.

I acknowledge the points raised by Deputy Neville. There is no doubt that the recession is putting greater stress on individuals, families and communities. I meet individuals and representative groups every day, and many people have expressed particular concerns and fears about the impact the recession is having on their lives. I welcome the opportunity to debate the issue and to confirm that at the conference organised by Deputy Neville's group, the professor from the United Kingdom who was the first speaker and whose name I forget——

Professor Platt.

——went on to show specific and clear evidence of the effect of a downturn in the economy, not just in this country but throughout the world. The figures were obvious. Unemployment and high stress levels unfortunately lead to serious mental health issues.

We are here to discuss the impact a recession and unemployment may have on suicide rates. I will not contradict anything that has been said. Our financial difficulties do not in any way dilute the Government's commitment in the area of mental health reform. Deputies will be aware of the greatly increased funding base for mental health services that has been built up over recent years. Overall spending on mental health services in 2007 and 2008 amounted to an estimated €1 billion annually. I do not intend simply to go through figures in the House because that can be more annoying than anything else but I want to be able to show in the coming two to three months that regarding the Government's commitment to delivering the mental health reform programme, A Vision for Change, I intend doing a public appraisal some time in January.

By way of acknowledging what has been done I will be writing to all the people who had an input into A Vision for Change to ask them to make me aware of the barriers they have encountered in delivering the reform programme. I look forward to giving more information on that in more detail in a future debate.

Bee Mortality Rate.

I wish to raise the serious increase in bee mortality rates in this country and across the European Union, given the role bees play in the pollination of commercial crops, and the findings the Minister for Agriculture, Fisheries and Food and his Department have presented to the European Food Safety Authority on the current survey of member states on this issue.

We know there are many complex challenges facing the country and the global economy but the important fact of bee pollination of our crops must rate as one of the greatest. There is climate change but there is also the serious problem which is becoming evident from a decline in the world bee population.

Research into this issue, otherwise known as colony collapse disorder, has shown staggering declines in bee populations. In North America, one third of the bee population is said to be lost. In France it is somewhere between 10% and 25%. Japan and South America have seen dramatic falls, and in the Middle East there is said to be a fall of somewhere between 20% and 80%.

I have kept bees for many years in County Carlow, underneath the Blackstairs Mountains. My own bee colonies died from varroa, which affects their immune system. It is a horrible disease and one hates to see that happening but if what is happening with small bee keepers is replicated across the world and the devastating impact this could have on our crops, it deserves a serious response from the Department of Agriculture, Fisheries and Food.

I welcome the fact the European Food Safety Authority has commissioned a survey of member states on bee population levels and what might be causing their decline. I am aware An Taisce has said that among the important factors which can help sustain our bee populations are the avoidance of pesticides, the protection of our hedgerows, increasing our biodiversity and creating buffer zones between hedges and woodlands. We must realise that the way we treat our environment is linked to the way we treat our society, and in turn our economy. The country must protect its natural environment. I want to know what analysis the Department has done on this environmental problem and the measures it is adopting to protect the 100 or so species of bees in this country, almost 30% of which are apparently under threat.

This is an economic issue. The role bees play in the pollination of commercial crops is worth €85 million a year to the economy. A third of the Western world's diet requires the pollination of plants by bees, particularly fruit and vegetables. We must protect these colonies.

This problem is another reminder of the threat of climate change. The declining migration of bees because of climate change is a grim reminder of what global warming is doing to our biodiversity. Our world without bees would be a devastating place to live. Albert Einstein once said that if the bee disappeared from the surface of the Earth, man would have only four years of life left. We may have more than four years but we must address the issue now for the future of mankind.

Ba mhaith liom buíochas a ghabháil leis an gCeann Comhairle as an ceist seo a ligint anocht. Ba mhaith liom buíochas a ghabháil leis an Teachta Mary White as an ceist tábhactach a ordú chomh maith.

My Department offers support to bee keepers through a number of initiatives. We administer the national apiculture research programme 2007-10, which provides some €267,000 in funding over the three years. The European Union co-funds €245,000 of this amount and the main element in the current Irish programme is a research project led by Professor John Breen and Dr. Mary Coffey at the University of Limerick. The current programme aims to develop integrated methods to control varroa mites in Ireland, to which Deputy White referred. The Department also works closely with the Federation of Irish Beekeeping Associations, FIBKA, on many issues of relevance to Irish beekeepers.

The main cause of significant bee losses across Europe at present is colony collapse disorder, which has been mentioned. This phenomenon has been responsible for the loss of large numbers of colonies in America since late 2003. I have read research indicating that if the current rates of loss in the USA are not turned around, there will be no honey bees there by 2035, which would be devastating not just for American but world agriculture. Similar large scale losses also began to be reported in continental Europe around 2003. The causes of colony collapse disorder are not yet certain although various factors are thought to be responsible, including starvation, viruses, mites, nicotine-based pesticide exposure, genetically-modified crops and climate change. Even sub-lethal doses of a chemical can damage a hive if the navigational abilities of bees are compromised.

FIBKA currently represents over 1,700 bee keepers nationally. I am glad to be able to inform the House that to date FIBKA reports no significant evidence of colony collapse disorder in Ireland. The weather in Ireland over the last three summers, and especially this summer, has however been very difficult for bees. Often queen bees failed to mate properly due to the poor weather and a number of colony losses last spring have been attributed to poor mating conditions in summer 2008. FIBKA sees good bee husbandry and bee keepers' practices as the key to successful bee keeping. For this reason all beekeepers should register with the Federation of Irish Beekeeping Associations. It is important that people know its website, which is www.irishbeekeeping.ie, and I urge people to register with the organisation if they are thinking of beekeeping or have already begun doing so.

In January 2009 the European Food Safety Authority was awarded funding to conduct a project aimed at identifying the factors which may contribute to colony collapse disorder and highlighting gaps in scientific knowledge in order to guide future research in this area. Ireland was approached to participate in a recent survey as part of the EFSA project. Although we do not operate a planned bee surveillance network, we supplied detailed information in respect of our sector. In summary, we indicated that we have approximately 2,200 bee keepers, almost all of whom are non-professional. Most but unfortunately not all are registered with the federation.

We estimate that each bee keeper has an average of ten hives and they produce honey for their own personal use and direct local sale in farmers' markets, for example. My Department has registered some 620 beekeepers as primary producers of honey and we believe this figure includes all those operations which are obliged to register under the EU food hygiene regulations. My Department also maintains a database to record details of registered beekeepers, bee importers and exporters, disease outbreaks and the findings of apiary inspections. My Department also monitors imports of bees and takes samples of bee exports as required.

Dr. Mary Coffey, the principal researcher working on Ireland's national apiculture programme, is also participating in the international COLOSS network which is investigating bee colony losses globally. Dr. Coffey will survey Irish beekeepers on colony losses over this autumn through to next spring as part of her role in this network. Irish participation in this worldwide integrated approach to colony losses is most welcome and will help mitigate the detrimental impact of honey bee colony losses for beekeepers, agriculture and natural biodiversity.

In regard to disease control, beekeepers are obliged to notify outbreaks of American and European foul brood disease to my Department. There have been no cases of small hive beetle or tropilaelaps mite detected to date and positive cases of American and European foul brood are routinely followed up and all infected hives are destroyed. Adjacent hives are also sampled for foul brood disease.

This issue goes beyond the needs of beekeepers, as Deputy White mentioned. Pollination by honey bees has been estimated to deliver €85 million of services to Irish agriculture in general, especially in my own area of responsibility in horticulture but also in clover, which affects dairy and meat production. This is one of the many reasons I take a keen personal interest in biodiversity and beekeeping. Apart from keeping abreast of the international research in apiculture, I expect to take delivery of my own hive in February in an orchard in Balbriggan, near Bremore where St. Molaga, the early Christian beekeeping monk, lived.

Site Acquisitions.

Ba mhaith liom cúpla nóiméad a ghabháil don rud uafásach. I wish to raise the matter of a site for Gaelscoil Chluain Meala in my home town in Tipperary. It is an important matter but it has proven very difficult, as there has been a long gestation period in the search for a new school for the community. This perilous position has persisted for almost 15 years. There is a wonderful school community, which includes the board of management, the parents' council and an excellent principal in Treasa Nic Diarmada agus na múinteoirí eile. It also includes pupils, caretakers and others.

There is a long history to the efforts to gain a site for this school. I have correspondence from as recently as 20 September 2007, when the then Minister for Education and Science, Deputy Mary Hanafin, indicated: "I absolutely appreciate how long the school (Gaelscoil Chluain Meala) has been in its current accommodation. I assure you that the Department will do all that we can to have a site for the school by the end of 2007". It is now October 2009 and we have seen no progress on this important issue for Clonmel and the surrounding area. A site has yet to be located and purchased. When the school was established it was initially given temporary status, and I thank South Tipperary County Council because it used an old county council building in Irishtown in Clonmel. That was over 14 years ago and the year after establishment, it was recognised as a viable establishment, even though it was in temporary accommodation, a position that has not changed since.

Teachers and pupils are in cramped and unsuitable conditions by any standard and in recent years, parents have been forced to fund-raise just to keep the doors open and look after the present school building in Irishtown, keeping it maintained and in a habitable condition. They also contribute to the rent to the county council. With a site still to be identified and negotiations yet to begin on getting it developed, teachers, parents and the public are extremely frustrated and disillusioned with the lack of advancement of this project to date. While I was a member of South Tipperary County Council I remember being party to a motion in 2006 relating to tract of land in Ballingarane. It is a great site overlooking Clonmel and incorporating Balingarane House. The management, however, refused to allow a national school to be built on that campus because it was of the view that it would not be proper for it to be co-located there with a third level institution.

We then considered every site available north and south of the River Suir. I compliment the board of management, Mr. Seán Carey and the principal of the school on their efforts to obtain a site. I also pay tribute to Professor Drumm and Mr. Brian Gilroy of the HSE who came up trumps in late 2007 by offering a three-acre site on the N24 outside Clonmel. Unfortunately, the waters were again muddied when the county manager decided to purchase the relevant lands from the HSE. However, that proposed sale did not, in fact, proceed. The site was held in abeyance in the intervening period and I have informed the county manager — who, I am sure, will not mind me taking his name in vain — of that fact.

I am extremely unhappy about this matter. In frustration, the board of management, the teaching staff and the parents' council came up with the idea of trying to retain the school at its current premises and to extend it into the old machinery yard that is located adjacent to it. I took a deputation to meet the Minister — I thank him for receiving us — and his officials to discuss this proposal. We thought it had met with a good reception. Unfortunately, however, bureaucracy has again got in the way. We are awaiting the arrival of an official to value the site in order that the Department can purchase it from the county council. It appears the latter is now intent on housing an arts centre for Clonmel on the same campus. I am in favour of such a centre being put in place but I do not want the resolution of the problem delayed any further. I appeal to the Minister and his officials to use their good offices to ensure the valuation is carried out in order that a deal might be struck with the county council. The site can then be purchased and we can move to proceeding with the various stages of the building process.

What has happened is extremely frustrating. I recall a line from the poem, Cill Chais, which runs "Cad a dhéanfaimid feasta gan adhmaid?". The new line and motto we might use is, "Cá bhfuil ár nGaelscoil Chluain Meala?"

Gabhaim buíochas leis an Teachta Mattie McGrath as ucht na ceiste seo a ardú agus mo leithscéal leis as ucht go bhfuil orm mo dhroim á thaispeáint dó.

I am replying to this matter on behalf of the Minister for Education and Science, Deputy Batt O'Keeffe, who regrets that he cannot be present. I thank the Deputy for raising it because it provides me with the opportunity to outline to the House the Government's strategy for capital investment in education projects and also to outline the current position in respect of the future plans for Gaelscoil Chluain Meala, Cluain Meala, Contae Thiobraid Árann.

Modernising facilities in our existing building stock, as well as the need to respond to emerging needs in areas of rapid population growth, is a significant challenge. The Minister intends that it will be one of his priorities. The Government has dramatically increased capital investment in the school building programme to an unprecedented level. This reflects its commitment to continue its programme of sustained investment in primary and post-primary schools. It will underpin a particular emphasis on the delivery of additional school places in rapidly developing areas, while continuing to develop the Government's commitment to delivering improvements in the quality of existing primary and post-primary accommodation throughout the country.

As the Deputy will be aware, the Office of Public Works, OPW, which acts on behalf of the Department in respect of site acquisitions generally, was requested to source a greenfield site for this gaelscoil. The OPW advised the Department that the Health Service Executive had formally conveyed its approval to dispose of a site for the gaelscoil. Officials from the Department met representatives of the local authority and the school authority in June of this year. On foot of those meetings, the Department is examining a number of options regarding the proposed site for the school. The further progression of the acquisition of this site and the accompanying building project will be considered in the context of the capital budget available to the Department for school buildings in general.

I again thank the Deputy for affording me the opportunity to outline to the House the current position in respect of to the future plans for Gaelscoil Chluain Meala, Cluain Meala, Contae Thiobraid Árann.

The Dáil adjourned at 9.45 p.m. until 10.30 a.m. on Thursday, 15 October 2009.
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