Adjournment Debate

Fiscal Policy

Deputy Kieran O’Donnell

I thank the Acting Chairman and welcome the Minister for Defence, Deputy Killeen, to the Chamber. The Minister is from County Clare and this issue is of specific relevance and importance to Shannon Airport and the wider mid-west region. The reason I raised this matter is Shannon Airport Authority launched its five-year plan today. It projects that it will increase its passenger numbers to 2.5 million by 2015. One factor that may be instrumental in achieving this target would be the removal of the punitive €10 travel tax. It made no sense at the time of its introduction and many other countries have removed similar measures. I heard the Minister for Tourism, Culture and Sport, Deputy Hanafin, mention this morning that the travel tax was up for discussion in the budget. I seek confirmation from the Minister, Deputy Killeen, that this €10 travel tax will be removed. As a Deputy for County Clare and a Minister from the mid-west region, I do not doubt that the Minister, Deputy Killeen, will do everything possible at Cabinet level to ensure the removal of the travel tax.

If one considers this issue from the perspective of Ryanair, its passenger numbers next year are projected to be approximately 400,000. In 2009, the equivalent figure was just short of 2 million passengers. Moreover, Michael O'Leary has stated that a major factor in the reduction in the number of flight routes, which have fallen from a peak of 35 to six, is the travel tax. There must be an element of common sense in government and it makes no sense to introduce a tax that brings in only approximately €100 million but that takes from an airport and a region by driving away tourist activity. This is short-sighted and a key feature of the Government has been that it has made decisions that are purely about short-term revenue collection but which have enormous consequences in the long term for employment and the number of flights arriving at Shannon in particular. The Minister is aware that passenger numbers are well down. The passenger numbers in 2010 are expected to fall by 800,000 from the equivalent figure of 2.8 million passengers last year to 2 million passengers this year.

One must ensure the measures in place do not discourage people from coming to Ireland. The Limerick and mid-west region have terrific amenities, a fantastic array of hotels and golf courses. Limerick city boasts such amenities as Thomond Park, the Hunt Museum, the city itself and the River Shannon. People should be encouraged to enter the region and the €10 tax constitutes a major impediment. The national plan produced by the Government today is 150 pages long. While I may have missed some of the small print, I did not see a reference to the removal of the aforementioned travel tax. The Minister should confirm either that this is mentioned somewhere in the document or, if it is not, that its abolition will be brought forward in the budget to enable Shannon Airport to increase its passenger numbers.

As the Minister is in the Chamber tonight, I will refer to another key element that will enable Shannon Airport and the region to drive forward, as the airport is a driver of tourism industry in the mid-west region and people in Limerick city are closely associated with it. Shannon Airport must be made independent, which always was the intention under the original legislation. The Minister should indicate when a review will get under way to ensure that Shannon Airport can be a stand-alone entity. However, on becoming independent to make decisions, it must be independent in a debt free way. It should not be laden down with debt and I have a number of views in this regard. First, one cannot compete with one's employer and Shannon Airport Authority competes with Dublin Airport Authority and terminal two. This simply is impossible and is akin to operating with both hands tied behind one's back. The airport must be allowed to operate independently and the Minister, Deputy Killeen, will be aware that Aer Rianta International was the brainchild of Shannon. It pulls in significant profits on an annual basis and I believe it should be allowed to return to the running of Shannon Airport. What is needed is an airport that is in command of its own destiny, that is not laden down with debt but is debt free and that can compete with the Dublin Airport Authority on an equal basis.

A key element in overall aviation policy is the immediate removal of the travel tax. The Minister should state tonight that this tax will be repealed in the budget, which would enable Shannon Airport to increase its passenger numbers to the benefit of the mid-west and the entire region.

Minister for Defence (Deputy Tony Killeen)

Tá mé ag freagairt thar ceann an Aire Airgeadais. I am pleased to have this opportunity to comment on the air travel tax. The Minister accepts that the airline industry and the tourism sector, along with other industries within the transport sector and beyond, continue to go through a difficult trading period. The air travel tax introduced on 30 March 2009 was one of a number of budgetary measures that were necessary in the context of an overall response to the fiscal challenges we face and represent a genuine effort to broaden the tax base in a fair and equitable manner.

Members may wish to note that both Germany and Austria have announced plans to introduce an air travel tax with effect from 1 January 2011 and the United Kingdom has increased its air passenger duty this month. It is worth informing the House that the UK's passenger tax for somebody travelling to locations such as New York and Boston is £60. This puts our modest tax in some context. Ironically, that level of tax serves to promote Irish airports as cost-effective entry points for long-haul travellers wishing to visit the UK.

The Minister has stated before that the impact of the tax on passenger numbers is being overstated. Analysis in the Department of Finance suggests that passenger numbers are influenced by a few key factors. These include relative income as measured by GNP, the numbers at work in the domestic economy and the sterling-euro exchange rate. This correlation stands up in the period before and after the introduction of the air tax, suggesting its impact on passenger numbers is minimal.

It is clear, therefore, that essentially domestic factors have driven down demand from Irish travellers who in the good times had utilised strong disposable incomes to travel frequently. Also, large numbers of non-national construction workers were frequent travellers between Ireland and their home countries. On the other side of the equation, it should be noted that traditionally 50% of passengers coming through Irish airports are from the UK but this cohort has been influenced significantly by the weakness in sterling. Sterling has fallen in value by around 25% relative to the euro over the last three years. UK data show that British holidaymakers responded to this currency movement through holidaying at home in large numbers last year.

Ireland is not unique in applying a tax on air travel. For example, as mentioned earlier, our nearest neighbour, the UK, has applied a similar tax for a number of years. Indeed, the UK recently revised its air passenger duty. The minimum rate, with effect from 1 November, is £12 or €14 for flights within the EU and rises to £85 or €100 for long-haul flights above 6,000 miles. Germany is in the process of introducing an air travel tax at a rate of €8 for journeys to EU destinations, €25 for medium haul destinations and €45 on long-haul destinations. The tax is to apply from 1 January 2011. Austria is introducing a tax on 1 January 2011 with a rate of €8 for flights within the EU and €40 for flights further afield. Similar taxes apply also in France, Australia and New Zealand. The rates for the Irish air travel tax are not unreasonable both for shorter and longer journeys, when compared to rates in other countries.

The Government acknowledges that low cost travel has been good for Ireland. The pioneers in this area deserve to be commended. However, in analysing the new tax, we must not overplay its impact. It should be recognised that visitors to Ireland are only subject to the tax on the return journey. The additional €10, or €2, in the context of a much larger purchasing decision involving travel, hotel expenditure etcetera should have only a limited effect on tourism numbers.

I would also point out that airlines benefit from an international tax exemption on jet fuel. The extent of this benefit is illustrated by the example that tax as a percentage of the price of one litre of petrol is currently in excess of 60%.

We have to bring a sense of balance to this debate. In the period up to 2008 we saw exceptional growth in air travel both to and from Ireland. At home strong disposable incomes and consumer confidence led people to take, in some cases, several air trips per year. However, it should come as no surprise that given uncertainties in the economy generally, consumers have shown some reluctance to take or plan trips abroad. An air trip abroad generally involves expenditure of several hundred euro. Therefore to blame the introduction of a modest air travel tax of €10, or €2, for the reduction in passenger numbers is stretching credibility. In addition, it does not stack up that an airline that complained vigorously about the €10 air tax on the basis of price sensitivity of customers, can then introduce a non-discretionary on-line check-in fee of €5 per flight, or €10 per return flight.

The introduction of a relatively modest air travel tax was an important revenue raising measure in the context of the significant financial challenges we now face. We in this House are subject to pleadings from various interest groups, some with more robust cases than others. In these times we need to apply sound and balanced judgment to such pleadings.

The Government today introduced the National Recovery Plan 2011-2014. It has prioritised the need for the burden to be shared among all. The Minister continues to widen the tax base to put us on a more sustainable footing. However, the Minister has stressed the importance of creating the right conditions for growth and jobs.

As in the case for all taxes, the options surrounding the air travel tax will be considered in the context of the forthcoming budget.

Funding for Spinal Surgery

Deputy James Bannon

I thank the Ceann Comhairle for allowing me to raise this matter in regard to an urgently needed spinal procedure on behalf of a patient in my constituency of Longford Westmeath. The procedure is not available, due to under-resourcing of this sector in the hospital in question and the patient is suffering and deteriorating due to the excessive delay.

This case relates to a young person who has just started college and suffers from a spinal condition which is extremely debilitating. It is particularly difficult for a young girl to cope with a new academic routine while in extreme pain. There is also the physical appearance of such a condition, which gets harder and harder to disguise with clothing as the condition worsens.

According to the consultant in charge of her case, the capacity to provide surgery for patients is curtailed by the lack of resources directed towards this problem. In recent correspondence he says that he spent three years abroad training in this specialised area and is very conscious of the need for timely surgical treatment. He goes on to say that there are currently no dedicated resources for this kind of surgery. Unfortunately this means that patients suffer extreme pain and deterioration while they are waiting. He says that he and his colleagues have made multiple representations to the Department of Health and Children at all levels to try to improve this situation. Currently there are 102 patients awaiting spinal surgery on his list, with 35 of these for spinal fusion. I believe that the hospital has now sourced an additional consultant to perform day procedures, which should go some way to clearing the backlog, although day treatment is not applicable to the patient in question.

When cutbacks caused by Government mismanagement of the economy are set against the alleviation of pain, and the cutbacks win, then people suffer unduly. It is this lack of consideration of the human element that is missing from our health services. The patient, who should be the prime focus of any health system, does not count.

The Minister recently admitted that 70% of the health budget goes into administrative salaries and just 30% is allotted for patient care. She then went on to say that the cutbacks in the forthcoming budget would be taken from that 30%. Then, to top off the disregard for the well-being of patients, a percentage of the health budget is returned unspent to the Exchequer each year. That is a farce.

I must ask the Minister to go back to the drawing board and work out who exactly is our health service for. As it stands, its primary function is to continue to pay for a top-heavy sector, with little money filtering down to the patient. The tales of horror, pain and sheer despair are mounting daily. This is morally and criminally wrong.

When patients in extreme pain and discomfort are given appointments with a waiting time of 18 months or more, the system is not meeting the needs of the sick and vulnerable. This is not acceptable, just as it is not acceptable to ask a young girl to wait for a year or more for essential surgery. What is particularly distressing is the hardening in attitudes towards the needs of patients, as civil servants take any measures necessary to make good the excesses of the Government, regardless of patient well-being.

When a country looks to its ill and vulnerable to make good its shortfall while the so-called elite continue to enjoy the good life, it is despicable. While he is apparently content to see patients die if necessary, I do not see the Taoiseach rushing to give up a half of his excessive salary. Why should the Taoiseach of a country in dire financial straits, for which he bears responsibility, be given the fourth highest salary of any prime minister or leader in the world? Is the IMF turning its attention to this necessary, indeed not negotiable, cutback?

In the meantime, while the fat cats are still lapping the cream, a young patient in my constituency of Longford Westmeath is suffering. I am asking the Minister to take this young patient out of pain and provide the surgery she so urgently needs.

Deputy Tony Killeen

I am responding on behalf of my colleague, Deputy Mary Harney, the Minister for Health and Children. While it would be inappropriate for me to comment on a particular case, the HSE has advised the Minister that the patient to whom the Deputy is referring in this instance attends Tallaght hospital. The patient is awaiting surgery under the care of one of the hospital's orthopaedic surgeons. Decisions on the clinical care of patients including appropriate surgery and the preferred timescales for such surgery are for the clinicians involved to make.

The HSE has written to the Deputy in regard to the waiting list of the surgeon involved in this case. The hospital has sourced another consultant to provide treatment for patients awaiting day surgery under this particular orthopaedic surgeon's care. The hospital intends to ensure that the day case list will be cleared by the end of the year. Tallaght hospital provides a trauma and elective orthopaedic service for a large catchment area with approximately 500,000 people. Some 70% of inpatients referred for elective orthopaedic surgery are referred from the hospital's outpatient clinics. A further 15% are referred from Naas General Hospital's outpatient clinics and another 15% from St. James's Hospital clinics. Tallaght has two theatres and 22 beds for the provision of the elective service.

In April 2010, the hospital's executive team approved a bed ring-fencing and waiting list initiative proposed by the hospital's peri-operative directorate. Since then, the number of patients waiting more than 12 months has been reduced by almost 70%. In addition, the number of patients waiting between six and 12 months has been reduced by 41%. The waiting list initiative includes a focus on improved efficiencies within the use of elective orthopaedic theatre and inpatient beds. There has been an increase in theatre utilisation of up to 49% and a similar increase in elective orthopaedic admissions. At present, almost one third of all surgery in the orthopaedic department is carried out on the day of admission. The length of stay of patients has been reduced by 8%. This initiative, along with other steps being taken by the hospital, will contribute to an increase in activity, a reduction in waiting times for treatment and improved outcomes for patients.

The recently published Tallaght hospital review, the Hayes report, identified difficulties in regard to orthopaedic services at Tallaght hospital and has made a number of recommendations in this regard. The HSE and the board of Tallaght hospital have undertaken to implement all the recommendations of the report. The Minister met Dr. Hayes on 8 November to discuss the implications of his report. She met the chairman of Tallaght hospital on 9 November and has also had discussions with the CEO of the HSE about the report. The main focus of these discussions is on what initiatives are needed both in the hospital and in the wider health system to provide sustained improvements in the services for patients. The Health Service Executive has assured the Minister that patients referred for treatment will be prioritised on the basis of clinical need.

The priority list is regularly updated. It is important that there be a co-ordinated approach to the management and treatment of patients in order that patients who require treatment can receive it as quickly as possible in the appropriate health care setting. The Minister has asked the Health Service Executive to address the issue as a matter of priority.

Bheinn sásta labhairt le mo chomhghleacaithe faoin mholadh atá déanta ag an Teachta go laghdófaí an tuarastal atá ar fáil do dhaoine laistigh den Teach go dtí leath den méid atá ann anois.

Irish Red Cross

Deputy Finian McGrath

I thank the Office of the Ceann Comhairle for the opportunity of raising this urgent matter regarding the management of the Irish Red Cross, particularly the dismissal case of Mr. Noel Wardick. Let us remember, before discussing the details of the case, that the Irish Red Cross is receiving over €1 million in taxpayers' money. I have raised this urgent matter on a number of occasions with the Minister for Defence. I welcome the fact that the Minister is present to participate in the debate. It is a question of openness, transparency and justice for Mr. Wardick, whom I totally support in his quest for fair play and the protection of his human and legal rights.

I am strongly in favour of urgent reform of the Irish Red Cross. I call on the Ministers for Defence and Foreign Affairs to make this a priority in the Dáil. Some people at the senior level in the organisation have got to wake up and return to their own principles of humanity, impartiality, neutrality, independence, voluntary service, unity and universality. The people and taxpayers of this country want their Red Cross to act in a caring and professional manner. This is not happening at present.

I have other concerns. The Minister should investigate the undeclared Tipperary bank account in respect of which €162,000 raised for flood victims was not spent. We need a new secretary general. Following these actions, we need a full general assembly of members, staff and volunteers. Then we need a full investigation into the affairs and operations of the Irish Red Cross. The status quo should end. Reform and change represent the only way forward for the Irish Red Cross.

I strongly support the case of Mr. Noel Wardick. He was formally dismissed from the Irish Red Cross on 10 November and removed from the payroll. He is still awaiting the result of the Irish Red Cross appeal and is unable to claim the jobseeker's allowance and other social welfare benefits. The Irish Red Cross fired him before any appeal was heard, in breach of its own policies. The Irish Red Cross refused a third party appeal, as per Mr. Wardick's entitlements under Irish Red Cross policy. The Irish Red Cross refused Mr. Wardick's appeal to an authority higher than that which heard the original case.

The Irish Red Cross is granting Mr. Wardick an appeal, but only to more board members — two, to be precise. The investigation hearing resulted in a finding of gross misconduct. Two additional board members issued the sanction of dismissal and no appeal, bringing the total number of board members involved in the disciplinary process to six.

Most of Mr. Wardick's accusations concern malpractice, negligence, cronyism, abuse of power and financial irregularities. As such, having board members investigate his case is in fundamental breach of the first principle of natural justice. The accused cannot investigate the accuser. I urge the Minister to heed this in the debate.

The Irish Red Cross has only allowed Mr. Wardick a written appeal to the two board members. There will be no oral questions or clarifications. Mr. Wardick submitted written appeal documents to the Irish Red Cross and awaits the outcome. The strong objections submitted by him regarding the process itself must be addressed. He will also apply for a hearing over employment dismissal. Mr. Wardick is currently unemployed as a result of his whistleblowing activities and because he lacks a P45, he is unable to claim benefits.

Transparency International Ireland, a global organisation that monitors corruption and abuse, calls for an independent investigation into the affairs and operations of the Irish Red Cross and asks that Mr. Wardick be reinstated immediately. Transparency International Ireland made this statement publicly in a formal letter to the chairman of the Irish Red Cross. The Minister should insist that the Irish Red Cross hold this independent investigation.

For 20 years the Irish Red Cross has been bedevilled with serious governance problems, industrial relations problems and financial irregularities. The common denominator during all this time has comprised the same two or three people.

The Minister appoints the chairman of Irish Red Cross, 16 members of the 40-member central council and has representation on the Irish Red Cross executive committee. He also gives the Irish Red Cross nearly €1 million annually. His claims that he cannot act and investigate are wrong. The 1939 Act establishing the Irish Red Cross specifically allows him to intervene in day-to-day affairs. Therefore, why is it that his official from the Department of Defence is the formal administrator in the disciplinary hearing into the activities of Mr. Wardick? There cannot be any more detailed day-to-day involvement than in the disciplinary process in question, bearing in mind the identity of those centrally involved in the dismissal of Noel Wardick, who in good faith has revealed matters of public interest and has been fired for his troubles. Why is an honest and genuine whistleblower not subject to the Government's legislation to protect whistleblowers?

I urge common sense in the making of radical changes to the Irish Red Cross. I support totally Mr. Wardick. Support is the least this House can offer.

Deputy Tony Killeen

The Irish Red Cross Society was established on 1 July 1939, pursuant to the Red Cross Act 1938. It is an independent, statute-based charitable organisation with full powers to manage and administer its affairs through its governing body, the central council. The Government has a responsibility to preserve the independence of the society.

The society has a duty to manage its affairs with due care and it is incumbent on it to manage within its budget while minimising the effects on service provision. The Minister for Defence enacts any necessary legislation in respect of the society. However, he does not have a policy role in respect of its activities. The Minister has no function in the day-to-day administration of the Irish Red Cross Society and does not involve himself in the day-to-day running of its affairs.

Ireland, as a party to the Geneva Conventions, is a member of the international Red Cross and Red Crescent movement. National societies carry out their humanitarian activities in conformity with their own statutes and national legislation. They must always maintain their autonomy so that they may be able, at all times, to act in accordance with the principles of the international Red Cross movement. The principles under which the society achieves its objectives are humanity, universality, unity, impartiality, independence, neutrality and voluntary service. While being a member of the International Federation of Red Cross and Red Crescent Societies, the society is legally separate and independent from this federation. The federation acts as a resource to the society rather than a monitoring body and does not have a policing role.

The central council of the Irish Red Cross Society consists of 30 members — one per local area — elected by the various society areas throughout the country and of members nominated by the Government who, in accordance with the Irish Red Cross Society Order 1939, must comprise not less than one third of the total membership of the council. There are currently 16 members nominated by the Government to serve on the central council until 30 April 2012. The executive committee of the society is elected by central council from within its own ranks. It meets monthly and runs the day-to-day affairs of the society on behalf of the council. The central council elects the members of the executive committee, apart from the chairman, on an annual basis.

The Red Cross Act 1944 provides that the President of Ireland shall, by virtue of her office, be president of the society. The chairman of the central council is appointed by the President on the nomination of the Government. The society is supported by a grant-in-aid from the Department of Defence. This grant assists towards the running costs of the Society. The total amount of the grant for 2010 is €951,000. From this, the society pays the Government's annual contribution — €131,000 — to the International Committee of the Red Cross. The latter amount has been contributed each year from 2002 to 2010.

The current governance proposals arise from a resolution passed in November 2007 by the council of delegates of the International Federation of Red Cross and Red Crescent Societies, IFRC, which urged all national societies, as requested by action 3 of the strategy of the movement, to examine and update their statutes — the rules of the national societies — and related legal texts by 2010 in accordance with the guidance for national society statutes and relevant international conference resolutions. This task is being undertaken by many Red Cross and Red Crescent societies throughout the world. The current proposals have the support of the IFRC.

A working group to propose changes in governance, including those recommended by the IFRC was established in 2008. The chairman of the temporary working group presented the findings to the central council of the Irish Red Cross Society at a meeting held in November 2009 and it was received in the Department of Defence in January of this year. In order to implement the recommendations, there will be a requirement for significant amendments to the Irish Red Cross Society Order 1939. Representatives of the society and officials from the Department have had a number of meetings to discuss the specific changes required and work is ongoing in that regard. A draft of the amended order has been prepared for examination by the Office of the Attorney General and the society. I have also asked my officials to clarify with the Office of the Attorney General my role vis-à-vis the Irish Red Cross Society.

The proposed changes address issues relating to higher level areas of corporate governance such as organisational structures, electoral arrangements and membership. The main areas for consideration are: the appointment of the chair; appointments to the central council; proposed changes to the terms of office, rotation and election to the executive committee; clarification of the role of the president; and the establishment of an external and independent appeals mechanism, as well as an arbitration and membership committee composed of volunteers to decide on all membership removal and applications. When the consultative process is concluded, Government approval for the change in structure will be sought and a change in legislation will ultimately be required.

In accordance with article 9 of the Irish Red Cross Society Order 1939, the chairman of the society must be a member of the central council. In nominating persons to central council, the Government considers that it is highly desirable that the society should have on its governing body people with a wide variety of knowledge and expertise gained through work experience in both the public and private sectors and-or volunteer experience.

The new chairman, Mr. David J. O'Callaghan, who has a great deal of experience in this area, was appointed recently. The post of secretary general of the society was advertised in recent months and applications are now being examined.

In respect of the matter of alleged irregularities in the handling of funds, it is my understanding that the issue of the bank account in question is being dealt with by the society. The society has put in place new and revised procedures so that such circumstances do not recur. The full report of the internal group appointed to inquire into the matter is due to be completed shortly.

A recent disciplinary matter involving a senior member of staff was dealt with by the executive committee of the society. This resulted in the person's dismissal from the post. As this matter is under appeal, it would not be appropriate for me to make any comment.

The Dáil adjourned at 9.05 p.m. until 10.30 a.m. on Thursday, 25 November 2010.

Dáil Éireann díospóireacht - Wednesday, 24 Nov 2010