Topical Issue Debate

Overseas Development Aid

Deputy Olivia Mitchell

I am grateful to have this topical issue chosen today and I thank the Minister for coming into the Chamber to participate personally in the short debate. I have just come from Dublin Castle, where the European Year of Development was launched at the Dóchas conference by the President. I tabled this matter today to coincide with that event because I am conscious that often, when one has European years of this or that to highlight a particular issue, they are announced with a great splurge of publicity but then sink without trace and in many cases, that is the last one hears of them. I am anxious, as I am sure is the Minister, that this would not be the fate of the European Year of Development but that the potential benefits of the designation would be maximised to enhance and promote the development agenda and to spread the word about development co-operation.

What the EU Foreign Affairs Council had in mind in designating this European Year of Development was that we would communicate to European citizenry what is happening in the area of development co-operation and identify needs and what has been achieved. This is the first year a European Year has been designated to the celebration of something that goes beyond the borders of Europe. We have always been a little bit more inward looking. We now have an opportunity to highlight Europe's role as a global player. It certainly is a global player when it comes to development co-operation in that 50% of all world development aid comes from Europe. Ireland has played its part and has been always a generous contributor in direct aid, through its NGOs and multilateral aid through the EU and UN. If the generosity of the Irish people, through their support for development aid which has persisted even in the face of the very deepest domestic recession, is to continue it is important the they understand this generosity is not wasted and that money is being well spent and to good effect in the developing world. Feedback is vital.

I raise this issue today in part to highlight the importance of development aid but also to inquire of the Minister if there are plans this year to use this event to communicate to the Irish people the beneficial outcomes of their generosity, both as taxpayers and as direct contributors to our NGOs. Like me, many people, including, I am sure, the Minister, have donated money to development aid, which when we were children was known as aid for the black babies. There may be a perception that because this has been going on for so long it is a case of putting money into a black hole and nothing ever seems to get better. That is far from being the case. There is a good news story to tell and we should tell it.

This year of development is chosen, as the Minister will be aware, to coincide with the deadline for the achievement of the millennium development goals. One of the advantages of having goals, targets and indicators is that we can measure the progress that has been made, as well as identify what needs to be done. Progress has been made. There are now fewer people hungry in the world, the number of people now living in extreme poverty, as compared with the number in the 1990s has halved, more children, particularly girls, go to school and fewer women die in childbirth. There is more to do. It is important we use this opportunity to communicate the positive message that with a good plan, backed by funding, we can succeed. In this way, we can engage public support for the achievement of the millennium development goals.

Minister for Foreign Affairs and Trade (Deputy Charles Flanagan)

I thank Deputy Mitchell for raising this issue and allowing me to put on the record of the House the Government's welcome of the designation of 2015 by the EU Foreign Affairs Council as European Year of Development.

This year is a hugely important year for development as it coincides with important intergovernmental negotiations on development and climate change which will take place during the course of 2015. Negotiations will conclude in September on a set of sustainable development goals, SDGs, to be adopted by a summit of world leaders at the UN in New York in the autumn. The goals will be negotiated and agreed by the world's 193 countries and cover every area relevant to human well-being and development, including poverty and hunger, health and education, employment and environmental degradation. Ireland is at the heart of this process, following its appointment as co-facilitator with Kenya on the intergovernmental negotiations to agree these goals. This is testament to Ireland's standing internationally, to our proud record of development, our promotion of human rights, our long-standing participation in peacekeeping across the world and our diplomacy. Our appointment reflects just how integral development is to our foreign policy. Only last week, we published a review of our foreign policy, The Global Island: Ireland's Foreign Policy for a Changing World. This places a strong emphasis on our values as a people and our actions to build a fairer, more just, secure and sustainable world. It recognises the centrality of our international development policy, One World, One Future and our aid programme, Irish Aid, in achieving this.

We are confident that the new sustainable development goals will have a profound impact on the lives of the world's poor. These processes will also garner huge national and international attention and it is intended to use this to promote further the messages of global citizenship, solidarity and responsibility that are integral to the European Year of Development. The European Year of Development aims to inform EU citizens about EU and member states' development co-operation, encourage active interest and direct involvement of citizens in development issues and raise awareness of the benefits of EU development co-operation. Ireland, along with all EU member states, will undertake key activities to support the European Year of Development.

I acknowledge the long-standing programme of activity on the part of Deputy Mitchell through a number of organisations down through the years on this issue, and her record of raising it in this House and beyond. The Deputy will be aware that Dóchas, the umbrella group for Irish development, humanitarian and global justice organisations, was nominated by the Department of Foreign Affairs and Trade to co-ordinate the Irish action plan for the European Year of Development, in recognition of the extremely close co-operation between our official aid programme and the NGO sector in Ireland. In response to the Deputy's direct question, funding has been made available for our national campaign in that regard.

To launch the European Year of Development, a special conference was, as mentioned by Deputy Mitchell, held in Dublin Castle today. The conference was opened by President Michael D. Higgins, who spoke of the need to develop a deeper understanding of global issues and development. It also included excellent discussions and debate on sustainable development involving the Minister of State with responsibility for development, Deputy Sherlock, representatives from civil society, representatives of the African community in Ireland, the private sector and youth groups. In its capacity as national co-ordinator, Dóchas will ensure key events during 2015, such as Africa Day and One World Week, include targeted activities to promote the European Year of Development, and engage with the public on issues of poverty, hunger, inequality and social justice. In addition, my Department will continue to use our established methods of communication and public outreach to share the messages of the European Year of Development. These include a very active online presence through the Irish Aid website and social media platforms, public outreach events such as Africa Day, the Ploughing Championships and BT Young Scientist and engaging with students, teachers and volunteers through our various workshops and volunteering fairs.

Deputy Olivia Mitchell

I thank the Minister for his reply and the positive news that Dóchas is to drive the action plan for the year. I again reiterate how important it is that we achieve ambitious post-millennium goals. I know that our ambassador is playing a key role in this regard in terms of driving this deal forward and getting buy-in for it from world leaders. I know also that the Minister will use his powers of persuasion at the European Council to ensure a strong and ambitious European input in this regard.

The Minister will be aware that Brian Hayes, MEP, who is a member of the development committee in Europe, has suggested that now is the time to set a timeframe for achieving the 0.7% aid target. I realise that our aspirations have to be set in context and that perhaps this is not the context for that particular figure. However, perhaps we could use this year to discuss a timeframe for achieving it in the coming years.

Important as money is - and it is important - development co-operation is about more than money. It is about trade, what we buy and sell, investment, tax policies and, as mentioned by the Minister, climate change, some of which issues may be outside the direct remit of the Minister but fall within the remit of other Ministers. I ask the Minister to use his persuasive powers at the Cabinet table to ensure that other Ministers buy into this year and use their voices at the European Council to ensure a strong European input across all the areas through which we interact with the developing world.

Deputy Charles Flanagan

On the final issue raised by the Deputy, the matter is on the agenda for discussion at this week's meeting of the Foreign Affairs Council in Brussels.

It will continue to be accorded prominence on agendas for the forthcoming months.

Regarding the post-2015 development goals, our ambassador to the United Nations, Mr. David Donoghue, will play a most prominent role by chairing the negotiations and discussions leading up to the announcement of the post-2015 plan, the target date for which is September 2015.

Dóchas has been awarded €26,000 in support of its role as national co-ordinator of the Irish action plan for the European year, in addition to the sum of €113,000 received directly from the European Commission. As per standard practice, Dóchas will report on the use of funds, including outlining a programme of activities, as well as the results of the work plan at the end of the project’s period. Brian Hayes, MEP, has been appointed to the development committee of the European Parliament. I wish him well in that regard and look forward to receiving reports from him in due course.

The Government is strongly committed to Ireland’s overseas aid programme which is at the heart of our foreign policy. This reaffirms our commitment to achieving the UN target of 0.7% of gross national product, GNP, to official development assistance, once economic circumstances permit. Since coming into office and in the context of difficult economic circumstances, the Government has successfully stabilised official development assistance aid including the budget aid programme. In budget 2015, the Government protected the aid budget providing for a total allocation for overseas development aid of over €600 million. This demonstrates the Government's commitment to the aid programme and represents a significant contribution on behalf of the people of Ireland to assist those in the world who are less fortunate than ourselves.

Human Rights

Deputy Richard Boyd Barrett

At 6 o'clock this evening outside the Saudi Arabian embassy in Dublin a protest will take place organised by the National Union of Journalists and Amnesty International to highlight the plight and persecution of Raif Badawi, a liberal from Saudi Arabia who set up a website called Free Saudi Liberals which called for a debate on the freedom of speech in Saudi Arabia and for the separation of church and state there.

For his troubles, last year he was sentenced to 1,000 lashes over a period of 20 weeks which coincidentally began the very same week of the killings of the Charlie Hebdo cartoonists in Paris. He received the next 50 lashes the following Friday. Tomorrow, he will get another 50 lashes. This punishment will continue for another 17 weeks after which he will then serve ten years in prison - all just for calling for the freedom of speech and the separation of church and state. His lawyer, Waleed Abu al-Khair, was also sentenced to 15 years in prison for criticising human rights abuses in Saudi Arabia. This is against a background where 83 people were beheaded in Saudi Arabia last year. As one Italian journalist put it recently, when it comes to beheadings ISIS, Islamic State of Iraq and al-Sham, has nothing over Saudi Arabia.

Given the justified outrage expressed by our Taoiseach and world leaders who went to the trouble of attending a mass rally in Paris after the Charlie Hebdo killings, declaring their commitment to freedom of speech, declaring their outrage that anybody would suppress freedom of speech or persecute or kill journalists, where is the outrage, condemnation and the demands for leniency by the Saudi Arabian Government in the case of Raif Badawi? Where are declarations that this will not be tolerated and action will be taken against Saudi Arabia over this persecution of a journalist?

Will we also do the same for the killing of 17 journalists during the Israeli assault on Gaza? This was justified by officials of the Israeli Defence Forces publicly with no condemnation, no rallies, no marches or threats of sanctions. World leaders, however, flocked to Paris saying they will not put up with the persecution of journalists. It was right to do this in Paris. Why do we say nothing when it comes to Saudi Arabia? Will the Taoiseach join the demonstration outside the Saudi Arabian embassy later, particularly if he went to the trouble of going to Paris several weeks ago? If there is this lack of consistency in calls for the upholding of the freedom of speech and defending journalists’ right to freedom of speech everywhere, can we really take seriously those very declarations of a commitment to the freedom of speech in Paris several weeks ago? It was utterly nauseating to see Benyamin Netanyahu on the Paris protest when he was responsible for the killing of 17 journalists in Gaza. Not a word was said about that. There were no protests, no rallies and no leaders joining marches against those killings in Gaza.

Will the Minister explain these double standards? Will the Government speak out loudly and angrily about what is happening to Raif Badawi? Will we demand trade sanctions be imposed on Saudi Arabia? Will representatives of the Government join protests demanding his release and the end to the persecution of journalists and people who wish to engage in free criticism and speech about social and political affairs in Saudi Arabia?

Deputy Charles Flanagan

The case of Raif Badawi which the Deputy raised is clearly a matter of ongoing and serious concern to the Government. Our concerns relate both to the conviction of Mr. Badawi for activities widely regarded here as the peaceful exercise of his right to freedom of opinion and expression and also to the nature of the sentence which included corporal punishment. The carrying out of this sentence began with the public flogging of Mr. Badawi in Jeddah on 9 January 2015. When I met with the director general of the Irish branch of Amnesty International this afternoon, we had an opportunity to discuss this case.

Our concerns about this case have been repeatedly raised by the European Union on behalf of its member states, including Ireland, with the Saudi authorities when Mr. Badawi was convicted and, again, now that punishment has commenced. They have also been conveyed directly to the ambassador of Saudi Arabia in Dublin by a senior official in my Department. EU embassies in Riyadh, including Ireland's, are continuing to work intensively on this case.

In addition, the spokesperson of the High Representative of the Union for Foreign Affairs and Security Policy, Ms Federica Mogherini, issued a statement on the case of Mr. Badawi on 9 January, calling on the Saudi authorities to suspend the flogging, a call which was echoed on 15 January by the United Nations High Commissioner for Human Rights, Mr. Zeid Ra'ad Al Hussein. I sincerely hope the Saudi authorities will answer the High Commissioner's call for Mr. Badawi to be pardoned and for this harsh form of punishment to be urgently reviewed.

In the meantime, I welcome the fact the second session of punishment of Mr. Badawi, scheduled to take place on 16 January, has been postponed. I also welcome the reports of a further postponement which have emerged just this afternoon. The reports that his case has been referred to the Saudi Arabian supreme court is a positive development. I hope this will presage a wider rethink of the case, as well as the important issues it raises, by the Saudi authorities.

We normally raise human rights issues, including specific cases such as Mr. Badawi's, in conjunction with our EU partners in Saudi Arabia as we do in many other locations. It is quite clear we have the greatest impact on matters of foreign policy, including human rights, when the 28 EU member states speak with one voice.

Ireland has always been at the forefront internationally in raising human rights issues through bilateral contacts and through the European Union and the United Nations, and we have never shied away from addressing these issues. As the Deputy may be aware, the Government's review of foreign policy, The Global Island, which was launched last week, underlines the Government's continuing commitment to promoting human rights.

Ireland specifically sought and fought for election to the UN Human Rights Council as one means to fulfil this commitment. Membership provides us with an opportunity to make a positive contribution to the work of the Human Rights Council and to the global protection and promotion of human rights. As a member of the Human Rights Council, Ireland makes specific recommendations to many countries on human rights issues under the universal peer review procedure. In October 2013, Ireland made two recommendations during the UN universal periodic review of Saudi Arabia.

Let me assure the Deputy and the House that Ireland will continue to closely follow the human rights situation in Saudi Arabia and to monitor the case of Raif Badawi in this context.

Deputy Richard Boyd Barrett

I welcome the fact that there has been a postponement of a couple of the episodes of the flogging. However, I cannot help but note the stark difference between the tone of concern raised by the Minister and European and international leaders when it comes to a case such as this or the 17 journalists killed in Gaza - the other example I mentioned - or the fact that there were over 80 beheadings in Saudi Arabia last year. This would be a regular occurrence. Mr. Badawi was lucky in the sense that his flogging took place at the same time as the Charlie Hebdo atrocity and for that reason has gained some international focus. However, what happens when that focus is gone and this barbaric action continues? All we get from the European Union and from leaders in this country and elsewhere are expressions of concern or appeals to the governments in question, in this case the Saudi Government.

When the Charlie Hebdo atrocities occurred we had a much more vigorous response, including declarations of zero tolerance. To put it simply, we would not allow an embassy of ISIS to open in Dublin. However, the Saudi Arabian Embassy is allowed. They are beheading people week in week out, jailing journalists, flogging them and cutting people's hands and legs off. Yet we continue to treat them in the normal diplomatic manner. We continue to trade with them. There are no sanctions. There is not the same tone of unequivocal outrage we saw expressed in Paris. It was as if a war against extremism was declared in the aftermath of the Charlie Hebdo affairs, yet when atrocities just as bad or worse take place in countries with which we happen to do business, we are much more muted in our language and in the substance of our response.

Where are the sanctions? Where are the penalties? Where are the Government-organised protests over the behaviour of the Saudi Government or, for that matter, the outrageous attempt by Israel to justify the killing of 17 journalists in Gaza? It sought to publicly justify this and called some of the journalist terrorists. Where is the consistency in our concern for human rights and freedom of expression and how is that going to be manifested?

Deputy Charles Flanagan

I wish to reiterate for the benefit of the Deputy and the House that the case to which the Deputy refers is clearly a cause for serious and deep concern. As I mentioned earlier, Ireland has always been to the fore internationally in raising issues of human rights and the Government's ongoing commitment to human rights is expressed in the recently published Irish foreign policy review. I invite the Deputy to read it.

With specific reference to Saudi Arabia, Ireland made two recommendations in its most recent review under the Human Rights Council review process. These were that Saudi Arabia would set a clear timeframe for the enactment and implementation of a law on associations which respects international human rights standards. This was noted by Saudi Arabia. Second, that Saudi Arabia would prohibit employees of government from requiring a guardian's permission to allow women to conduct official business, particularly in situations such as filing complaints for domestic violence. This was also accepted by Saudi Arabia.

I reiterate that this case is a matter of serious concern. Ireland will continue to express our concern through official channels. We will continue to closely monitor the situation in conjunction with our EU colleagues and it is our hope that this issue will be dealt with by the Saudi authorities, with particular reference to a pardon in respect of the offence. If the behaviour took place in this jurisdiction this would not be an offence by any manner or means. Further, if a full pardon is not forthcoming, we trust that the issue will be dealt with by way of severity of sentence. We believe the sentence, as currently handed down, is by no means in accordance with human rights standards.

Disabled Drivers and Passengers Scheme

Deputy Jack Wall

I thank the Minister for coming into the House to take this Topical Issue matter. I understand the procedure in respect of the application for a primary medical certificate, the appeal system and the possibility of a further appeal to the Office of the Ombudsman. I have no problem with this procedure and I know that each board do their assessments and appeals according to the rules and guidelines as laid out. The problem is that the guidelines are too severe and they act as a deterrent to applicants who are seeking to develop their independence to the point where they can move out of the family home, to a rural setting or even further afield, by being able to purchase a properly designed car that suits their needs.

The rules state an applicant must be completely or almost completely without the use of both legs, or completely without the use of one of his or her legs and almost completely without the use of the other leg to the extent that he or she is severely restricted as regards movement in his or her legs, or without both hands or both arms, or without one or both legs, or completely or almost completely without the use of both hands or arms and completely or almost completely without the use of one leg, or have the medical condition of dwarfism and serious difficulties of movement of the legs. A case in point that has further raised my concern is that of a constituent who very sadly had a bad stroke at the very early age of eight years. This caused great concern for his family and despite a huge commitment that saw the family travel to the UK, the US and other countries, their son never regained the use of his arm and hand. Thus from eight years of age, he had to learn to write, eat and dress himself and so forth without that arm and hand. While he sought to move on in life - he has been very successful in this regard through the use of computers and so forth - he cannot get any assistance under this scheme. He underwent the assessment and the appeal was unsuccessful. The next step was the Ombudsman. I informed the family that it would be a fruitless exercise. I said this with the best of intentions and it was not a slight on the office. However, I believe that because the applicant was assessed rightly on both occasions, the office would not and could not change the decision.

Can the guidelines be re-investigated to determine if they are still fit for their purpose? Do the number of refusals far outweigh the number of acceptances for applications for the certificate? Does this raise enough concerns to ensure a review of the system? During the years I have been in this House, the successful percentage has been very small and probably less than 5%. This is a very high refusal rate. I ask that a review be undertaken. If the regulations and guidelines stand up to scrutiny that would be acceptable. At least applicants will know that the guidelines had been reviewed and updated. If it is the case that the guidelines stand up to scrutiny, people will accept that. At the moment it is a frustrating and very difficult time for those who make the application in good faith. They go to the investigation stage and are turned down. When they appeal, in most instances they also fail because they do not qualify under the very difficult and strict guidelines which apply.

However, in almost every case that has come to my attention the feedback suggests the appeals board simply recommends that the person in question go to a local Deputy, Senator or other public representative to see whether something can be done about the guidelines. In the light of this I call on the Minister to see whether the guidelines could be reviewed with a view to ensuring people like the person in question will have an opportunity to move on in life.

Minister for Finance (Deputy Michael Noonan)

I thank the Deputy for raising this matter. As he will be aware, the primary medical certificate is required to access the disabled drivers and disabled passengers scheme. An applicant must satisfy one of six medical criteria to receive a primary medical certificate.

I will set out a brief description of the scheme, as it stands. It provides relief from vehicle registration tax and VAT on the purchase of a specially adapted vehicle, assistance with fuel costs relating to the running costs of the vehicle and an exemption from motor tax for drivers and passengers with disabilities who fulfil the medical criteria required to qualify for the scheme.

The primary legislation authorising the making of regulations providing for tax concessions for disabled drivers and passengers is contained in section 92 of the Finance Act 1989. The regulations introduced subsequently to govern the scheme, including the eligibility criteria, are contained in the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994.

To qualify for the scheme an applicant must have a permanent and severe physical disability within the terms of the regulations and, as stated, satisfy one of the six qualifying criteria outlined in the regulations. The senior medical officer of the relevant local Health Service Executive administrative area makes a professional clinical determination on whether an individual applicant satisfies the medical criteria. A successful applicant is provided with a primary medical certificate which is required under the regulations to claim the reliefs provided for under the scheme.

An unsuccessful applicant can appeal the decision of the senior medical officer to the Disabled Drivers Medical Board of Appeal which makes a new clinical determination in respect of the individual concerned. The regulations mandate that the medical board of appeal is independent in the exercise of its functions to ensure the integrity of its clinical determinations. After six months a citizen may reapply if there has been a deterioration in his or her condition.

The six qualifying criteria are necessarily strict and precise. To qualify an applicant must be wholly or almost wholly without the use of both legs; be wholly without the use of one leg and almost wholly without the use of the other leg such that the applicant is severely restricted in movement of the lower limbs; be without both hands or both arms; be without one or both legs; be wholly or almost wholly without the use of both hands or arms and wholly or almost wholly without the use of one leg; or have the medical condition of dwarfism and serious difficulties in movement of the lower limbs.

The scheme and qualifying criteria were designed specifically for those with severe physical disabilities. My Department frequently receives correspondence from applicants who do not meet the qualifying criteria but believe they could benefit from the scheme. While I have great sympathy with those who do not qualify, given the scale and scope of the scheme, I cannot expand it further within the current context of constrained resources.

The scheme represents a significant tax expenditure. Between the vehicle registration tax and VAT forgone and the assistance with fuel costs used by members of the scheme, provisional figures indicate that it represented a cost of €48.6 million to the Exchequer in 2014, an increase of €5.1 million on the 2013 cost. This figure does not include the revenue forgone to the local government fund in the respect of the relief from motor tax provided for members of the scheme. There were 4,936 claims for vehicle registration tax and VAT relief and 12,338 claims for the repayment of excise on fuel under the scheme in 2014.

I recognise that the scheme plays an important role in expanding the mobility of citizens with disabilities. I have managed to maintain the relief at current levels throughout the crisis and despite the requirement for significant fiscal consolidation. As such, while I recognise the Deputy's position, given the still challenging fiscal environment, I have no plans to expand the medical criteria beyond the six provided for in the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994.

Deputy Jack Wall

Obviously, I understand the fiscal position. However, the qualifying criteria are so strict that many people are being deprived of independent living, etc. because they cannot move from their homes. In many cases, they are financially unable to purchase a car because there are no incentives in place to do so. The Minister set out two figures. I am unsure whether they refer to successful or unsuccessful applicants and call on him to clarify the position. Time and again, all of the disability associations have made representations to me to the effect that the regulations are simply too strict. If the criteria were reviewed, those badly in need could find a way to meet them. Given some of the unsuccessful cases I have come across, I wonder who could possibly be successful. For over 23 years or as long as I have been working with the scheme, the number of successful cases has amounted to one or two at most. Will the Minister, please, examine the matter again to see what could be done? If a review still comes up with the same quantitative answer, we must accept it, but there really is a need to review the criteria from the perspective of those who find themselves in these circumstances. Will the Minister indicate whether it is possible to do this?

Deputy Michael Noonan

As I said, it was only with difficulty and pressure from home and abroad that I was able to avoid reducing the benefits during the bad times we had come through. The figures I gave were for the numbers who had benefited from the scheme in 2014. I cannot give the Deputy a commitment that the scheme will be reviewed. However, we receive submissions from the organisations that have been in touch with the Deputy in advance of budgets and always review these matters. In the context of the next budget and as a matter of routine, we will be reviewing everything, but I am not making a commitment that there will be a change.

Bank Branch Closures

Deputy Barry Cowen

I imagine the Minister is well aware that Ferbane is a small town in west Offaly. For almost a century it has had a branch of Ulster Bank at its centre. Long before RBS took over Ulster Bank or it grew in size and strength the people of Ferbane supported their local branch of Ulster Bank. They kept their savings in it; they borrowed from it to build their homes and finance their children's education. Local businesses were given their first start by it and stayed with it. The people of Kilcormac and Shannonbridge who previously used sub-offices have also stood by the bank. They, too, gave credence to the commitment given by Ulster Bank not to close the branch in Ferbane.

Some 4,000 people have availed of branch services. Now, unfortunately, this history has been placed under a dark shadow by a corporate decision by executives based in the vast sprawling building on George's Quay in Dublin. For them, the struggles of a small midlands town can be reduced to an accountancy exercise. However, the real impact of the branch closure will not be felt on asset sheets at Ulster Bank's headquarters; rather, it will be felt on the streets of Ferbane and countless other rural towns in County Offaly and throughout Ireland where, unfortunately, many bank branches are dying. The plight of Ferbane and the disregard shown towards the town and rural Ireland by Ulster Bank reflect a broader attitude which I fear is evident in the way in which the Government treats rural affairs at times.

The squeeze on small schools, the closure of 140 Garda stations, the threats to post offices and their contracts with Government Departments and the crippling burden of commercial rates are bleeding Irish towns dry. Fianna Fáil has highlighted these issues time and again. It is not as if we have remained on the sidelines; we have offered alternatives. I produced a document entitled Streets Ahead, which puts forward a road map by which Irish towns could be assisted in moving again.

The Government has continually failed to address the crux of the issue. What we are witnessing in the recovery that has been spoken about is the emergence of a fragile, two-tier recovery, where economic growth is confined to a few areas on the east coast and the larger cities while the rest of the country continues to suffer. We must ask ourselves if that is what we want for the country. Addressing the crisis which has been unfolding before our eyes like a slow-motion car crash must become a priority for the Government, businesses and corporates.

A situation emerged over the Christmas period at a shopping centre in Tullamore whereby the anchor tenant in the Church Road shopping centre, Dunnes Stores, opened its fire door onto the car park to allow customers easier access to the store, depriving other shops in the centre of valuable passing trade. It did so in defiance of the planning legislation that exists and the permission that was granted initially. That is just one example of the situation we are facing, when large businesses and corporates take advantage of their position and do not recognise the community spirit and ethos of many rural towns.

I ask the Minister and Fine Gael to step up to the plate and confront this crisis. The banks also need to recognise their important social role. The people of this country, as the Minister knows only too well, have stood by the banks in the past. It is now time to repay the favour, irrespective of the fact that Ulster Bank was not one of the banks to benefit from the assistance mentioned earlier.

Tomorrow the people of Ferbane and its hinterland will march on the midlands headquarters of Ulster Bank in Athlone. That march will provide them with the opportunity to inspire other towns, and the Government hopefully, to stop the rot and try to breathe life back into rural communities. I hope the Government recognises this and that the Minister will use his good offices and influence to impress upon the CEO of Ulster Bank, Mr. Jim Brown, to meet representatives of the community. Those representatives have already met high-placed officials from the bank and appreciate those meetings and the efforts made to try to assist the community in terms of continuing to exist in the absence of banking facilities. It should not stop there, however. I implore the Minister to use his influence to ensure that the CEO meets the community and hears their concerns directly. They were given a commitment in the past, not only locally, but by way of the charter of RBS itself, which declared that the bank would not leave any town in which there was no other bank in operation. That commitment has been thrown out of the cot at this stage.

Deputy Michael Noonan

I thank the Deputy for raising this important topic. I am aware of the concerns of Deputy Cowen and other Deputies as Ulster Bank moves to implement the closure of a number of branches and sub offices around the country. Indeed, this was the subject of a previous topical issues debate last summer when the bank announced these closures. A number of representatives have been in contact with my officials about this important issue.

I must be very clear that this is a commercial and operational matter for the Ulster Bank, a wholly-owned subsidiary of the Royal Bank of Scotland group, and it would not be appropriate for me as Minister for Finance to become directly involved in the number of branches that the bank may decide to close or the selection of which branches are to close. That said, I fully understand the concerns of the bank's customers at the closures and the additional expenses that they will incur if they have to travel additional distances to avail of banking services. I also regret that there may be job losses involved. However, Ulster Bank has said that the redundancies will be volunteer-led and workers will be invited to redeploy to other areas within the bank.

As with other banks in Ireland reducing the number of branches, there are a variety of factors impacting on the selection of branches to close. In addition to income and costs, banks will also assess the level of usage of each branch and whether the premises are owned or leased in the decision making process. I should also point out that it has been public knowledge for quite a while that Ulster Bank is seeking to reduce costs across its network and that branch closures were on the cards. The bank had previously announced its intention to reduce its network and what is happening now is that a previously announced decision is being implemented. However, I also understand that Ulster Bank is in discussions with An Post in relation to a potential link-up to retain basic services in some locations. If this can be arranged, it would certainly be a positive development, ensuring that valuable financial services continue to be available at local level to personal customers and businesses.

Ulster Bank has said that it is reducing the number of branches in response to changing customer behaviours, in particular the use of mobile and online banking. This will hopefully lessen the burden for many people. On a more general point, Royal Bank of Scotland has publicly committed to building on Ulster Bank's current position to make it a compelling challenger bank to the main domestic banks and focus firmly on the customer and I have previously welcomed this. The continued presence of a viable and active Ulster Bank in the Irish market will be important in fostering competition for banking services. It is vital that businesses and consumers have a range of banking options available when using financial services and accessing credit, all of which will become increasingly important as the economy recovers.

I have previously said that I expected that the restructuring of the banking sector in Ireland and the recovery of the economy will present opportunities for the entry of new market participants. We have also said that competition is central to a functioning financial services market. Royal Bank of Scotland's commitment to Ireland can be seen as a recognition of the recovery of the Irish economy and a vote of confidence in the opportunities that supporting this recovery offers to the providers of financial services. The Deputy may also be aware that KBC is opening a number of branches around the country and this is very much to be welcomed. I also welcome the fact that Ulster Bank confirmed that it currently has no further plans to reduce its branch numbers in 2015.

Deputy Barry Cowen

I thank the Minister for his attendance and his response. I join with the Minister in acknowledging the efforts of other Deputies in the House, particularly my constituency colleague, Deputy Marcella Corcoran Kennedy who has been to the forefront in seeking to address this issue in a manner favourable to the community. The Minister said that 14 branches are due to close, bringing the total number of closures to 26 or 27 since this process began. However, Ferbane is one of only two towns - Croom in Limerick being the other - which will have no other financial institution or bank remaining after the Ulster Bank closure. I am merely pointing out the commitment made by the parent company, RBS, that it would not leave any town without any banking facilities. I acknowledge that Ulster Bank is in negotiations with An Post with a view to providing banking facilities in those areas where its branches will close. However, I am also conscious that An Post in another location in Offaly is finding it very difficult to find a new provider to work on its behalf or to enter into a contract with it to provide financial services. One of the issues that has arisen is the size, scale and security requirements of any building, which must meet the guidelines as laid down by An Post. With the best will in the world, the facility that is currently available in Ferbane may not be meet the criteria. I am conscious that Ulster Bank has been in the same location in Ferbane for a very long time - up to a century I believe. The building is the bank's own and is a fine premises, located in the heart of the community. That building may be of some use to the community if the worst happens and the branch is not retained.

The implementation of this process has not met with approval in the community in so far as it has not been given time to explore other options and ensure they are in place when the fateful day arrives and the bank closes its door. People in the locality have shown resilience, dedication and commitment. Having met other impediments in recent times, including the reconfiguration of Bord na Móna and closure of workshops in that realm, the community has emerged stronger and now has a development association that is second to none. Furthermore, local people, through their own fund-raising efforts, have established an industrial park and facilities for business start-ups. This initiative shows their dedication and commitment to their community and its hinterland. They have been assisted by the West Offaly Partnership and funding provided by Bord na Móna and the ESB.

Local people are not immune to change or challenges. They simply want fair play and a level playing pitch. They seek a meeting with the person with responsibility for overseeing Ulster Bank at his convenience and in his preferred location. They want to be sure in their own minds that their community has had a fair crack of the whip and wish to place on the table their sentiments, feelings, commitment, dedication, history and association with Ulster Bank. It is against that background and having made the same request to the Taoiseach previously that I ask the Minister to use his influence to impress upon the chief executive officer of Ulster Bank the need to meet representatives of the community and public representatives to allow such a discussion to take place. We will deal with the consequences thereafter. This is the only role the Government will play and the only offer of assistance it can provide given that Ulster Bank is a commercial entity in its own right, one which has not had the benefit of capital input by this Government or the previous Government. In recognising that, I also reiterate my earlier comment on the position facing Ferbane and similar towns in rural areas. The Government must be seen to be more proactive in seeking to assist such communities in re-emerging from the recent crisis in a better way. To this end, I ask the Minister to consider in earnest the document that was produced.

Deputy Michael Noonan

I again thank the Deputy for raising this issue. As with other banks on the island, Ulster Bank experienced insolvency problems. Its parent, the Royal Bank of Scotland Group, is under the regulatory control of the Bank of England rather than the Irish banking system. The bank had its problems and at one point some years ago, it looked as if it would pull out of Ireland completely. Such a scenario would have been a great loss, especially in the northern half of the country, both in Northern Ireland and the Republic of Ireland.

We had some dialogue, including with Mark Carney, the Governor of the Bank of England, and we got assurances that the Bank of England would support the continuation of Ulster Bank services on the island. Ulster Bank will continue to trade as a competitive bank in Northern Ireland and the Republic of Ireland. However, because it had the kind of problems with which we are very familiar in the other banks, it began to cut its cost base and, in doing so, decided to close some branches.

To give the Deputy the overall picture, in June 2014, Ulster Bank had 79 branches in Northern Ireland. This figure declined to 74 in December 2014 and it is projected to fall further to 64 by March 2015. Ulster Bank had 135 branches in the Republic of Ireland in June 2014. This figure declined to 125 in December 2014 and it is projected to fall to 111 in March 2015. Notwithstanding this, Ulster Bank remains a strong retail bank trading on the high street. Of its original 214 branches North and South, 199 remained in December 2014 and the bank hopes the figure will settle at 175 in March 2015, with no further closures after that date. The bank will maintain a strong network.

On the specific case of Ferbane, it is always difficult when a bank that traditionally provided services leaves an area. This is hard on customers, residents and individual businesses. I see the Deputy's point of view and I will respond to his request and the requests of other Deputies in his constituency by asking my officials once more to contact senior figures in Ulster Bank requesting that they engage with the community and, in particular, further explore whether Ulster Bank can enter into an arrangement with An Post to provide alternative services for the people of Ferbane and other towns from which it is withdrawing banking services. I again thank the Deputy for raising this important issue, which deserves to be highlighted.

The Dáil adjourned at 4.25 p.m. until 10 a.m. on Friday, 23 January 2015.

Dáil Éireann díospóireacht - Thursday, 22 Jan 2015