Mary Lou McDonald
Ceist:1. Deputy Mary Lou McDonald asked the Taoiseach when the Cabinet committee on the economy and investment will next meet. [6849/23]
Ceisteanna - Questions
Cabinet Committees
Ruairí Ó Murchú
Ceist:2. Deputy Ruairí Ó Murchú asked the Taoiseach when the Cabinet committee on the economy and investment will next meet. [8145/23]
Ivana Bacik
Ceist:3. Deputy Ivana Bacik asked the Taoiseach when the Cabinet committee on the economy and investment will next meet. [8205/23]
Mick Barry
Ceist:4. Deputy Mick Barry asked the Taoiseach when the Cabinet committee on the economy and investment will next meet. [8632/23]
Richard Boyd Barrett
Ceist:5. Deputy Richard Boyd Barrett asked the Taoiseach when the Cabinet committee on the economy and investment will next meet. [8827/23]
Paul Murphy
Ceist:6. Deputy Paul Murphy asked the Taoiseach when the Cabinet committee on the economy and investment will next meet. [8830/23]
Cathal Crowe
Ceist:7. Deputy Cathal Crowe asked the Taoiseach when the Cabinet committee on the economy and investment will meet next. [8879/23]
Cormac Devlin
Ceist:8. Deputy Cormac Devlin asked the Taoiseach when the Cabinet committee on the economy and investment will meet next. [8880/23]
I propose to take Questions Nos. 1 to 8, inclusive, together.
The Cabinet committee on the economy and investment was established in January 2023. The first meeting was scheduled for 16 February, but was subsequently postponed. The meeting has not yet been rescheduled. Membership of the committee is comprised of the Taoiseach; the Tánaiste and Minister for Foreign Affairs and for Defence; the Minister for the Environment, Climate and Communications and for Transport; the Minister for Finance; the Minister for Public Expenditure, National Development Plan Delivery and Reform; the Minister for Enterprise, Trade and Employment; and the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media. Other Ministers or Ministers of State will be invited to participate as required.
The Cabinet committee on the economy and investment is responsible for issues relating to the economy and investment. It will oversee the implementation of programme for Government commitments aimed at sustainable economic recovery, investment and job creation, including implementation of the national digital strategy, entitled Harnessing Digital - The Digital Ireland Framework. The committee is chaired by the Tánaiste. As with all policy areas, economic issues are regularly discussed at full Government meetings, where all formal decisions are made.
IBEC's latest housing report states that the availability of affordable housing in Ireland, be it home ownership or rental properties, is becoming a critical barrier to continued growth and development of business investment. Every time we raise the need for the Government to increase public housing targets, Ministers and even the Taoiseach level the false arguments that the Opposition is opposed to home ownership. IBEC has called on the Government to set a more ambitious target for local authorities and approved housing bodies through delivery of social cost-rental and affordable homes with a target of 20,000 units each year before the end of the decade with greater delivery of affordable and cost-rental units.
Both domestic enterprise and international investors agree that there is an urgent need for an accelerated delivery of public homes and affordable homes. Last year, Deputies Ó Laoghaire, Buckley and I were part of a delegation including Government Deputies and Senators. Even the Minister, Deputy Michael McGrath, was there. IBEC in Cork outlined the consequences of the housing crisis. We were told of companies which had been looking to set up and invest in Cork but left because of the housing crisis. Does the Taoiseach agree with IBEC's recommendation that we need to increase the public housing target to 20,000 annually?
There are approximately 20,000 community employment scheme workers in the State. They do valuable work in community centres, in sports grounds, with meals on wheels and much more besides. These men and women work a minimum of 19.5 hours per week and in return they receive basic pay of €247.50, which is less than €30 a week more than the basic dole or an additional €1.50 an hour. The State's community employment scheme workers constitute a little army of low-paid workers providing valuable labour in our communities. Community employment scheme workers can, of course, receive other benefits and there can be poverty traps associated with pay increases. What plans, if any, does the Government have to improve their lot and to invest in this important social capital? When will the State move from its insulting offer of a mere 3% pay increase to community employment supervisors who have not had a pay increase for 15 years?
Pretty much everybody from the right, the left and the centre is now acknowledging that the housing crisis we are facing in this country, the lack of affordable accommodation, is now a very serious threat to the country's economic development. The eviction ban Bill, which thankfully the Government decided not to oppose this morning and which might progress, is a very small piece in that puzzle of trying to stop more people going into the horrendous situation of being homeless, but much more needs to be done.
The problem is that many of the workers we need to make our economy work - nurses, teachers and construction workers - are often not eligible for social housing - even if they are, they will be waiting ten or 15 years - or housing assistance payment, HAP, and have nowhere to live. They cannot afford rents of €2,500 per month. What is the Government going to do about this? I do not agree with HAP, but giving it to people who cannot possibly afford such rents if they are on average industrial earnings is better than them leaving the country or leaving key sectors in which we need workers. Something has to be done to ensure that affordable housing is available to people and we start purchasing properties under the purchase scheme even if people are above the income thresholds for social housing.
Shannon Heritage sites like the iconic Bunratty Castle are major cogs in the economy of the mid-west region. In the summer of 2021, the Cabinet decided it would be best to devolve these sites away from the auspices of the Shannon Airport Group and have them managed by the region's local authorities. Councils like Clare County Council in my constituency are eager to make this a success and to play their role, but they have asked the Government - the Taoiseach is aware of this request - for a subvention in the region of €15 million to do so. Sadly, the sites have been neglected for many years and will need an injection of money to make them a success. An offer in the region of €3 million was made in December, but that was well short of the €15 million sought. The initiative is once again moving in a positive direction and there are further negotiations and new offers on the table. Please, will the Taoiseach give all of us in the mid-west who are eagerly waiting for success on this front some positive indications?
There has been bad news about 240 job losses in Google's Irish workforce, and there have been constant worries about the tech sector. Like many of my constituents in Dundalk, I am worried about PayPal and its proposed 7% worldwide cut. What is our interaction with the tech sector? We are facing into a period of considerable job losses. While the tech sector will undoubtedly continue, I am worried about the future of its workers and I want to ensure that everything is being done to facilitate those who are leaving one workplace for another.
I call Deputy Bacik.
I thank the Acting Chair for his forbearance.
There is a severe lack of competition in parts of the Irish banking sector. While new fintech platforms like Revolut have mounted a challenge to the existing banks, there has been a concentration of power in the hands of fewer big banks in respect of areas like mortgages and business lending. This is a concern. There are also serious concerns about interest rates on mortgages for those whose loans were sold to vulture funds. My colleague, Deputy Nash, has proposed more powers for the Central Bank to regulate these. I ask that the Taoiseach consider them. I also ask that we explore the implementation of a Sparkasse-style public banking system using the remaining local financial services infrastructure. There has been a good deal of interest in the Sparkasse model from many community organisations. Has the Government plans to review the potential introduction of such a model?
I thank the Deputies for their questions. I was asked by Deputy Gould about the IBEC report on the housing crisis. As I have said before, the housing crisis is holding us back as a country in many different ways. Yes, it is about people having to pay very high rents, first-time buyers not being able to become homeowners and rising homelessness, but it is also holding us back economically. IBEC acknowledges this in its report and that it is an issue for employers and would-be investors thinking of creating jobs or employing people in Ireland. Certainly, for the past number of years when I met with employers, foreign direct investment, FDI, companies and major investors, it has been one of the concerns that they raised about Ireland – around infrastructure generally, but particularly around housing. They are also measured about it because they are often companies that have headquarters or big operations in places like London, LA, San Francisco or Lisbon, where they face many of the same issues. They acknowledge that it is far from being a phenomenon that is unique to Ireland.
Regarding targets, we met our main target last year when it came to housing. Almost 3,000 new homes were built in the country, according to the Central Statistics Office, CSO. That did not include student accommodation or derelict properties being brought back into use. We do not have the exact figures for social housing yet, but we think it is going to be in or around 8,000 this year, which would be the highest since 1975. Of course, in addition to that, there are other forms of public housing now being realised for the first time, for example, cost rental. We are going to review the housing targets. We are aware of the work of the Housing Commission in that regard. It may well be the case that we need to increase our housing targets. It is important to bear in mind that the existing housing target is to work upwards towards 40,000 new units per year by the end of the decade. Of course, any housing target that we set has to be realistic. We will probably add about 10,000 units to the public housing stock this year, and hopefully more. Would it not be great if we could get to 20,000? Yes, it would, but getting from 10,000 to 20,000, even with the best will in the world, would take a bit of time. We want to do it in such a way that we do not take the houses away from people who might be building properties for people to buy and become first-time buyers. What we want to do is increase the pie and make sure that more and more homes of all types are built. What we do not want to see is one form of housing increasing and other forms of housing decreasing. That is the challenge. It is right to have ambitious targets, but they also need to be realistic ones. I do not honestly believe, as the Deputy's party would claim, that just by electing it to office it would somehow be able to double the number of public homes built in one year. I do not think that is credible, and I do not believe very many people do.
On community employment, CE, everyone in the House knows from our constituency work and our day-to-day lives how valuable community employment schemes are, not just in terms of the work experience that they give the individual, but also the very valuable work that is done, be it in sports clubs, community centres or social services. However, it is primarily a labour activation measure and the rate at which people are paid is set at the level of jobseeker's plus an additional payment recognising the costs that arise from having to go to work. Certainly, we are open to increasing that allowance further, but that would obviously be a matter for the next budget. I am not directly involved in the talks on a pay increase for CE supervisors, but I hope that can be agreed sooner rather than later.
On the social housing income limits and HAP eligibility, we have increased the income limits, so more people can qualify for social housing and more people can qualify for HAP. We keep them under constant review.
Deputy Cathal Crowe raised the issue of Shannon Heritage. I know it is a matter of interest for Deputy Carey as well. He reminds me of it all the time, including as recently as yesterday. I am not directly involved in those talks, but I think Deputy Crowe is correct to say that they do appear to be moving in the right direction. Hopefully, we can have an agreement quite soon that gives Clare County Council the additional funding it needs to take over those properties and run them well. They are really great heritage assets. Everyone will know that Bunratty and Craggaunowen are some of the best heritage assets in the region and along the Wild Atlantic Way.
On jobs in the tech sector, I just want to sympathise with the workers in Google who are getting bad news today and to wish their representatives the best in negotiating a good redundancy and exit package. I am sure that will happen. I just want to say to them that the Government is here to help. Whether it is advice around job searches and other job opportunities, educational options and training options or help in setting up their own businesses, the Government is here to help. That is what people pay their PRSI for, and they should not be afraid to seek the help of the Government in that regard.
What I think we are seeing in the tech sector is a retrenchment of about 5% to 15%. It is probably closer to 5% in most cases. This still means that there are more people employed in the tech sector now than there were two or three years ago. There are still a lot of tech companies that are hiring, so there are opportunities. I think we will see jobs growth again in the medium term. The future is tech, the future is digital, the future is artificial intelligence, AI, it is robotics, it is virtual reality, VR, it is augmented reality, AR, and all of those things. There are going to be a lot of jobs in that sector. I would encourage young people to take account of the news about job losses that we are hearing now but to be aware that it is still likely that there are going to be lots of jobs in this sector and to consider studying science, technology, engineering and maths.
In the context of the Sparkasse banking model, an examination was done by the Government on that a couple of years ago.
There were two difficulties, one of which was, in my understanding at the time, that there was no barrier to such a model being established in the State but that those involved wanted the State to capitalise it. The State, as the Deputy knows, already owns a number of different financial institutions, so the difficulty was twofold. One, the request was that the State would not just not stand in the way but would capitalise it, which is a financial ask. Second, there was a real concern that rather than providing competition for the main retail banks, what was proposed would provide adverse competition to An Post and the credit unions, which we want to strengthen.
Nursing Homes
Mary Lou McDonald
Ceist:9. Deputy Mary Lou McDonald asked the Taoiseach if he has met with the Attorney General following publication of his report on nursing home charges and disabled persons maintenance allowance. [6848/23]
Ivana Bacik
Ceist:10. Deputy Ivana Bacik asked the Taoiseach if he has any plans for reform of the Office of the Attorney General; and the legal actions under way against his Department [6928/23]
Jim O'Callaghan
Ceist:11. Deputy Jim O'Callaghan asked the Taoiseach if he has plans for reform of the Office of the Attorney General. [8503/23]
Mick Barry
Ceist:12. Deputy Mick Barry asked the Taoiseach if he has met with the Attorney General following publication of his report on nursing home charges and the disabled persons maintenance allowance. [8633/23]
Richard Boyd Barrett
Ceist:13. Deputy Richard Boyd Barrett asked the Taoiseach if he has met with the Attorney General following publication of his report on nursing home charges and the disabled persons maintenance allowance. [8828/23]
Paul Murphy
Ceist:14. Deputy Paul Murphy asked the Taoiseach if he has met with the Attorney General following publication of his report on nursing home charges and the disabled persons maintenance allowance. [8831/23]
Gino Kenny
Ceist:15. Deputy Gino Kenny asked the Taoiseach if he has met with the Attorney General following publication of his report on nursing home charges and the disabled persons maintenance allowance. [8833/23]
Bríd Smith
Ceist:16. Deputy Bríd Smith asked the Taoiseach if he has met with the Attorney General following publication of his report on nursing home charges and the disabled persons maintenance allowance. [8834/23]
I propose to take Questions Nos. 9 to 16, inclusive, together.
Deputies will be aware that, as provided in Article 30 of the Constitution and in the Ministers and Secretaries Act 1924, the Attorney General’s role is to advise the Government in matters of law and legal opinion. The Attorney General also attends meetings of Government. I maintain regular contact with the Attorney General and meet with him in the normal course of Government business and at Government meetings. I have met him since the publication of his report on matters relating to nursing home charges and the disabled persons maintenance allowance on 7 February.
The Office of the Attorney General comprises three constituent elements: the advisory counsel to the Attorney General; the Office of the Parliamentary Counsel to the Government; and the Office of the Chief State Solicitor. All three assist the Attorney General in the provision of legal advice to the Government. This includes advice to Ministers, Departments and certain other public bodies, the drafting of legislation, the representation of the State in litigation and the performance of other functions, particularly those of a statutory nature. The current arrangements for the Attorney General’s office have served and continue to serve the State well. There are no plans at present for significant or fundamental reforms to the office.
The Attorney General’s office, like Departments and other State offices, seeks to operate as efficiently and effectively as possible. It embraces organisational change and development in order to meet the growing demands on its services. The nature of the work, with constant changes in Irish, EU and international law and high demands from across Government, requires a responsive office and compliance with the highest professional and public service standards.
There are currently three legal actions against the Department of the Taoiseach, two of which relate to regulations providing for access to information on the environment. The third concerns matters relating to agriculture, in which my Department is named as one of the respondents. The House will understand that I cannot comment on the detail of these legal actions because they are currently before the courts.
The Disability Federation of Ireland described the Attorney General's report as deeply discouraging. Nowhere in his report did the Attorney General refer to the State's obligation to people with disabilities under the United Nations Convention on the Rights of Persons with Disabilities, UNCRPD, or Ireland's responsibility as a signatory to this international human rights convention. Inclusion Ireland has had to remind the Attorney General and the Government that Article 21 of the UNCRPD is clear on the right to information for disabled people. Does the Taoiseach accept that the State is now in serious breach of this part of the convention? Fintan Butler, who worked for a number of years in the Office of the Ombudsman, wrote a thoughtful response to the report. He concluded that one might reasonably expect the Attorney General, as the guardian of the public interest, to be concerned with finding a fairer way forward. It is Mr. Butler's view that on the evidence in the report, the Attorney General appears to be simply acting as another partisan lawyer. He appears blind to the State's international legal obligations to its citizens. The Disabled Federation of Ireland has sought assurances that the UNCRPD will guide and be the foundation of the review being carried out by the Department of Health and the Department of Social Protection and any future responses to this issue. Will the Taoiseach provide assurances in that regard?
The Taoiseach said he has no plans for fundamental reform of the Office of the Attorney General. I ask that the Taoiseach look at the Bill my colleague, Deputy Nash, and I drafted to reform the Office of the Attorney General. The Bill in question is currently with the Bills Office for review. In it, we propose several much-needed changes to the Office of the Attorney General. First, the Attorney General would be required to have regard to the overall public interest, not just the narrower legal interests of the specific Government of the day. Second, our Bill would enable the publication of the Attorney General's advice in certain circumstances. While we accept that legal professional privilege properly attaches to advice given to the Government for the purpose of litigation - the Taoiseach outlined specific cases against his Department - we do not see any reason why it should not be published when it refers to public policy matters or legislation. For example, in the coming weeks, the Government will make a decision on extending the eviction ban. The Taoiseach confirmed to me earlier that decision will be made by St. Patrick's Day. I think the Minister for Housing, Local Government and Heritage, Deputy Darragh O'Brien, indicated that the Attorney General is being consulted about it. That is the sort of legal advice from the Attorney General that could be published because it will help us frame debates on the eviction ban and whether or not it should be extended.
Our Bill would also incorporate rules adopted from Australia for the State to act as a model litigant. We see increasing interest in this concept of model litigation strategy and requiring states to act as model litigants. We have seen too much pain and trauma caused to so many people as a result of the stance taken by the State over many decades in cases such as that involving illegal nursing home charges. In that context, it is time to take an open view on the reform of the Office of the Attorney General. It is disappointing to hear the Taoiseach say that he has no plans to do so. I ask him to look at our Bill favourably once it is introduced.
If there is going to be a debate about reform of the Office of the Attorney General, it is important that everyone in the House has a clear understanding of the functions, role and limitations of that office. As the Taoiseach indicated, under Article 30, it is clear that the Attorney General is an adviser to the Government. That is the Attorney General's sole function. The Attorney General provides legal advice to the Government and Ministers in order that they, in navigating policy decisions, can ensure they abide by the law. Also, the Attorney General can, like any other lawyer, set out a litigation strategy. Let us be clear, when it comes to a decision about what strategy should be adopted, that is a decision for the principal, not the lawyer who provides advice. We need to recognise that, under the Constitution, the Attorney General is not a member of the Government. Rather, he is an adviser to the Government. It is also the case that he is the guardian of the public interest. Nowhere is that set out in Article 30, but it is a development of the common law in Ireland. That function is limited. I was interested to hear what Deputy Bacik said about the legislation proposed. That may be a beneficial development of the Office of the Attorney General, but, in my opinion, it would require a constitutional amendment because his sole role is to give legal advice to the Government.
I do not think so. We have advice to the contrary.
Regarding the report which led to these questions, let us recall that the Government asked the Attorney General to prepare that report. The Attorney General is not an independent agent who can operate of his own accord. He is not a principal; he is a person who responds to requests from the Government. He compiled the report, which the Government decided to publish.
I wish to ask the Taoiseach about something tangentially connected to the issue of nursing home charges. The overcharging of people has been discussed as a historical issue, but I came across a case this week of something that I suspect is much more widespread. I refer to a couple I met who are on the fair deal scheme and both of whom are in receipt of the State pension. The wife is in a nursing home and is supposed to give over 80% of her income. These people do not have any more than that. The nursing home is imposing significant additional charges, for example, €40 for physiotherapy, €3 per day for activities and €25 per hour for a chaperone to take the woman, who is suffering with Alzheimer's disease, to the physio. She could not go to the Royal Victoria Eye and Ear Hospital because her husband could not afford to pay for a taxi.
It was going to cost approximately €80. I repeat this is somebody 80% of whose pension is already going to the nursing home under the fair deal scheme and her husband has been left with the State pension. He has to buy her clothes and all sorts. He does not have the money. After a few months in the nursing home the bill has increased to €3,000. He simply does not have it. This is an unacceptable situation. The nursing home is now putting pressure on him to hand over her social welfare card so it can get her money to pay the bill. If this is happening on a widespread basis, it is absolutely shocking and something needs to be done. Otherwise what we thought we were dealing with as an historical wrong is actually persisting and putting elderly, vulnerable and unwell people in an absolutely outrageous situation.
I thank the Deputies for their questions. The Attorney General's report was his own but, as Deputy Jim O'Callaghan pointed out, we asked him to prepare it. It was commissioned by the Government in that sense and we published it because I made a commitment in the House that we would. It was a very solid and comprehensive report. Above all, it pointed out that at least in the view of the present Attorney General, and I believe it would be the same for any Attorney General that I have worked with, the State's interest is the public's interest. The State can have no other interest than the public interest. Often in this country and perhaps in other countries people speak about the State in a very cold and almost alien way. The State is always presented as being cold, callous or hostile. This is because the State has no face. When we put a face on the State what is the face of the State? It is the taxpayer and the people who depend on public services, such as children in our schools, patients in our hospitals and older people who need care. It is our citizens. The interest of the State that we consider is the public interest and we have to look at things in the round. We cannot disregard the interests of the taxpayer. Equally we cannot disregard the needs of people who use our public services, such as children and patients. This is what the public interest is all about. It is never just about the person making a claim. It also has to be about the taxpayer and all of those who depend on our public services. This is the public interest and we have to take it all into account.
Deputy Jim O'Callaghan also pointed out that everyone has a legal strategy. People who sue the State have legal strategies as well as the State having one. There is nothing sinister or secret about this. He also pointed out the need for legal privilege. It would not be fair to expect one side in a case to disclose the advice it has if the other side is not willing to do the same. While we can all perhaps buy into the concept of being a model litigant we have to define what it means. A model litigant should not be one that concedes to every claim or folds in every case. I do not think anyone would argue this. We have to define what "model litigant" actually means.
The UN Convention on the Rights of Persons with Disabilities was ratified by the previous Government during my first term as Taoiseach. I was very glad that as a Government we could do this. It was very much led by the then Minister of State, Finian McGrath. I do not believe we are in breach of it but that is not for me to judge. I do not believe the convention would have applied retrospectively. Again I could be incorrect on this and I would have to seek advice.
With regard to the concept of reforming the Office of the Attorney General, as I mentioned earlier we have no plans to do so. I am not hostile to it either and we will certainly look at the Labour Party's Bill in this regard. It would be disingenuous for me to be against it in principle. In fact when we were in opposition in 2010 and 2011 as part of our New Politics document we proposed reform of the Office of the Attorney General by transferring some of the functions to the Office of the Ombudsman. We do not have a closed mind on the idea of reforming the Office of the Attorney General but we would have to make sure the reforms are for the better.
It has been the case that legal advice has been published in the past in the form of a note simpliciter. When Seamus Wolfe was Attorney General he published a note simpliciter form, or legal advice, on the eighth amendment. Where there is litigation it is a very separate matter and it would not be right to expect the public, that is the State, to publish its legal advice when the people suing the public, that is the State, do not do so.
With regard to the connected issue Deputy Boyd Barrett raised, an issue is arising with regard to nursing homes charging for what are often described as extras or additional services. There has to be greater clarity on this and some guidelines on what is genuinely an extra. I do not think anyone would expect that the fair deal fee paid to nursing homes would cover everything, such as taxis or clothes, but we need to make sure we have proper guidelines and better clarity on what is covered and what is not so that people know where they stand.
National Risk Assessment
Ivana Bacik
Ceist:17. Deputy Ivana Bacik asked the Taoiseach if he will report on the draft list of strategic risks 2023 in the national risk assessment. [6929/23]
Mary Lou McDonald
Ceist:18. Deputy Mary Lou McDonald asked the Taoiseach if he will report on the draft list of strategic risks 2023 in the national risk assessment. [8117/23]
Richard Boyd Barrett
Ceist:19. Deputy Richard Boyd Barrett asked the Taoiseach if he will report on the draft list of strategic risks 2023 in the national risk assessment. [8829/23]
Paul Murphy
Ceist:20. Deputy Paul Murphy asked the Taoiseach if he will report on the draft list of strategic risks 2023 in the national risk assessment. [8832/23]
Robert Troy
Ceist:21. Deputy Robert Troy asked the Taoiseach if he will report on the draft list of strategic risks 2023 in the national risk assessment. [8881/23]
Cathal Crowe
Ceist:22. Deputy Cathal Crowe asked the Taoiseach if he will report on the draft list of strategic risks 2023 in the national risk assessment. [8882/23]
I propose to take Questions Nos. 17 to 22, inclusive, together.
The national risk assessment has been prepared since 2014 and provides an opportunity to identify and discuss significant risks which may arise for Ireland. A draft list of strategic risks for consideration as part of the 2023 national risk assessment was published for consultation on 7 December 2022. This provides an opportunity, as has been done in previous years, for the public, stakeholders and Oireachtas Members to contribute their views on the proposed strategic risks for 2023. The public consultation closed on 17 February. Work is now under way on considering the consultation responses and finalising the 2023 national risk assessment.
The draft list outlined 25 proposed risks. Many of the proposed risks had been identified in previous assessments. Some of them have evolved significantly, such as the Russian invasion of Ukraine, inflation and, of course, new economic risks. The experience of recent years has brought home the importance of work in the area of risk management and preparedness. By promoting an open and inclusive discussion on the major risks facing the country the national risk assessment plays an important role in this work. It is important to note that the national risk assessment is just one element of the overall system of preparedness planning for Ireland and is not intended to displace the detailed risk management and preparedness carried out by individual Departments and agencies.
We know that the key risks facing the country now include the risks associated with the brutal Russian invasion of Ukraine. I know we will be having statements on this issue shortly. Of course there are also risks arising from the economic consequences and rising inflation rates. A key risk in Ireland that is of our own making is the risk caused to our economy, economic growth and jobs by the lack of availability of housing. This risk has been identified by IBEC and Grant Thornton, as we saw in the Business Post last week. It has also been identified by the many constituents and individuals who come to us every day with enormous difficulties accessing affordable homes for themselves. It is a risk being exacerbated by the Government's delay in announcing any extension of the temporary winter eviction ban. I thank the Taoiseach for confirming to me earlier that he will make a decision before St. Patrick's day. There are serious risks for all of the families facing the cliff edge of eviction notices at present. This is something that we need to stress. It is a risk not only to them but to us all as a society and economy.
I want to refer to the risks involved with climate change. We know immense risk is caused to all of us not only in Ireland but internationally due to the climate catastrophe. At a very local level even with the implementation of OPW flood defences, we know there is likely to be more flooding in Ireland. Many homes still cannot access cover. It is an issue for many people in my constituency. Will the Government introduce a scheme to provide for compulsory home insurance cover?
A further risk is an inability to hire staff in many areas of the public service. We know a number of unresolved pay claims need to be addressed. Last week we saw adult education tutors protesting outside Leinster House to get recognition for their jobs. They were also fighting for standard public service contracts. I have raised previously in the House the need for a pay rise for workers in the community and voluntary sector. The Labour Party tabled a motion on this some months ago. We need to see the risks involved in the shortages of staffing in our public sector addressed urgently by the Government.
The draft national risk assessment expects inflation to remain elevated and anticipates a very gradual easing of inflation rates over the course of 2023. It then uses the energy-linked inflation to warn against a wage-price spiral emerging as the economy approaches full employment. This is a limited argument that ignores the fact early warnings of a wage-price spiral have not materialised, with average earnings growth falling below the rate of inflation. This is even more pronounced when multinational sector wages are excluded.
We know from research funded by the Low Pay Commission and undertaken by researchers at UCD that of the 420,000 low-paid workers in Ireland, one in five is over 50. ESRI research tells us that home ownership for 25- to 35-year-olds has collapsed over the last 20 years under Fianna Fáil and Fine Gael Governments. The same research finds that future retirees are to have a substantially lower rate of home ownership than currently exists, with the consequence that as more people retire, homelessness will increase because, in the past, older people would have owned their own homes. This is a catastrophe that is coming down the road.
As we remain in a cost-of-living crisis and a deeply entrenched housing crisis, low and medium income workers are not and will not be the cause of a wage-price spiral. The data tell us where the problem lies. It lies squarely with bad policy and bad decision-making by successive Governments. Will this analysis be reflected in the national risk assessment?
This Friday at 1 p.m., the Save Our Forests Save Our Lands alliance will hold a protest outside the headquarters of Coillte in Newtownmountkennedy precisely to address what more than 30 different environmental and rural organisations that have joined the alliance believe is the risk posed to biodiversity, to farmers, to local communities, to water quality, to sustainable forestry and to addressing our climate objectives by the policies of Coillte. Coillte has most recently attempted to pursue a forestry model that is about involving vulture funds, which are purely interested in making profit from forestry and continuing the failed bankrupt model of monoculture Sitka spruce, which is damaging for the environment, damaging for local communities and worse than useless for biodiversity, water quality, soil quality - you name it. There needs to be a fundamental reform of Coillte and what it is doing because, at the moment, it is pursuing a damaging forest model on every level.
The Gresham House deal should still, even now, be unravelled but, more importantly, we need a fundamental reform of the mandate of Coillte so it is not about competing with farmers and not about operating forest simply for profit, but is actually about being the guardian of the forest estate in the interests of the common good and in the interests of pursuing biodiversity and supporting farmers and local communities. I hope the Taoiseach will support that protest and its demands for a fundamental and urgent reform of the Coillte mandate.
The advent of Brexit has had a very negative effect on Ireland overall but it is certainly felt more in some of the regions. In County Clare, we very much look to Europe yet our backs are to the Atlantic Ocean. Since the advent of Brexit, we find ourselves very much cut off from continental Europe. We no longer have air connectivity into continental Europe, our only hub connectivity being to London Heathrow. An request was made by the Shannon Airport Group last autumn vis-à-vis a public service obligation, PSO, application to Government. It is seeking Government supports to subvent that all-important air connectivity from Shannon into continental Europe, and it is specifically targeting a route into Amsterdam Schiphol. I have travelled there twice in the past year to try to cultivate that and push it a bit further. However, the reality is that this cannot immediately wash its face commercially and it needs some Government intervention to ensure Shannon is connected to Schiphol or, if Schiphol is not the answer, perhaps Frankfurt Hahn or Charles de Gaulle. Whichever it is, we need something.
I ask the Taoiseach to look at this because it has been before the Government for several months. There is provision under EU Regulation No. 1008/2008, which provides for states to provide financial support for regions that are remote and require air routes for better connectivity. I ask the Taoiseach to move on that. It is on the desk of the Department of Public Expenditure, National Development Plan Delivery and Reform but the Cabinet needs to make a decision. At the moment, it is pending a decision, which blocks those who might want to take on commercial routes from taking them on.
I am revisiting a question from yesterday. We all welcome the citizens’ assembly on drugs use. The war on drugs is dead and buried and we know we need health-led initiatives. I want to ask specifically about drug debt intimidation. It is a particular issue and we need to ensure it is front and centre in regard to the citizens’ assembly. We then need action afterwards, not just reports.
On that final point on drug debt intimidation, I agree it is something the citizens’ assembly needs to examine as part of its work.
On the issue raised in regard to air PSOs by Deputy Cathal Crowe, we have had a few air PSOs in the past, for example, there was Dublin-Kerry, which we no longer need because it is a commercial service; Dublin-Donegal, which is still there; and Dublin-Derry, which is gone. In the past, to my knowledge, they have always been internal flights. I know they do not have to be internal flights and they can sometimes be international flights, but they have to be public service obligations. My understanding of European law is that we cannot fund them for purposes of tourism or business. It is not that type of connectivity that is considered a public service under European law but, rather, it is people being able to connect to medical appointments and things like that, so it is a higher bar. However, I am not an expert on it at all. I will certainly mention to the Minister, Deputy Ryan, that the Deputy has raised it.
I would very much like to see Shannon connected to a European hub. There are very important transatlantic links into Shannon and a crucial link from Shannon into London Heathrow. I would very much like to assist the airport to secure a European hub like Paris, Frankfurt, Copenhagen or Schiphol, but perhaps there are other mechanisms than PSO to achieve that. One thing we always have to bear in mind is displacement. Displacing a flight from Cork to Shannon or from Knock to Shannon, or vice versa, does not achieve very much, unfortunately. Displacing a flight from Dublin to one of those airports would be a positive thing but no subsidies are provided to Dublin Airport, in fact, quite the reverse. Dublin Airport pays significant dividend profit taxes to the State which we can then use to help other airports and other regions.
On forestry, we now have about 11.5% forestry in Ireland in terms of our land mass, so we are going in the right direction, which is encouraging. The aim is to get to 18%, which is a big ask but something we want to do. We want that mainly to be done by farmers. Farmers own most of the land in Ireland and we want them to be the people who do most of the new forestry. That is why we have the new forestry programme, with attractive grants, incentives, single farm payments and tax concessions for farmers who plant some or all of their land. We really want them to lead on this and to be the main group that delivers for us when it comes to forestry.
We have forestry for lots of different reasons – yes, for climate and as a carbon sink, yes, for biodiversity, and yes, for leisure and tourism, but also for timber. Timber is important. We have a housing crisis and embedded carbon matters. We want more homes built with timber rather than concrete, and that is where conifers come in, so we need to have them as part of our plantation mix. That needs to be borne in mind. We can deal with the climate crisis and the housing crisis at the same time, but it is very hard to do if we do not use timber in houses, and that means conifers.
What of the mandate of Coillte?
The mandate of Coillte should be all of those things: to produce timber for housing and building, for leisure and tourism and for climate and biodiversity. It should be a multiple mandate, not a single mandate, and that is the mandate, in my view.
I very much agree with what Deputy Gould said about us not seeing a wage-price spiral. That is not happening in Ireland. Inflation here is being caused by other factors, including monetary policy, that is, quantitative easing and a prolonged period of low interest rates, a pandemic that created a mismatch in supply and demand and also of course the war in Ukraine. However, just because we are not seeing a wage-price spiral, it does not mean we want to see one either.
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