I thank the Minister of State, Deputy Richmond, for being here to deal with this.
Saincheisteanna Tráthúla - Topical Issue Debate
Business Supports
Echoing that sentiment, I thank the Minister of State for coming to the House to address this important issue. I compliment the Ministers, Deputies Michael McGrath and Donohoe, and their ministerial team, including the Minister of State, Deputy Richmond, on the work done on the budget. It was a momentous budget, one that was historic in many respects. It set the tone and template for the achievements of the Government. It is often the case that actions in a budget can have unintended consequences. One such unintended consequence relates to the measure to assist businesses that will grapple with rising costs in the coming 12 to 18 months. I will deal with that later.
Obviously, the Finance (No. 2) Bill is progressing through the House. We agreed Second Stage last night and the Bill has gone to the select committee. I know from my conversation with the Minister, Deputy McGrath, that there is still an opportunity to fine-tune the cost of business support scheme and make it a much more inclusive scheme to address the challenges facing many businesses. We are very much dealing with a changed landscape for business. Covid transformed the way business is operated. We have a generation of young people who will probably never go into a bricks-and-mortar shop but, rather, do the predominance of their shopping online. Retailers have responded. They are doing experiential retail and it is very different.
To put my point forward in the best manner possible, I will articulate the comments and sentiments of a business owner who contacted me on this issue in recent days. His is a long-established family business in Longford employing 80 people. He has taken issue with what he sees as the shortcomings and inadequacies of the budget in trying to alleviate the challenges his business and contemporaries will face in the coming 12 to 18 months. The business employs 80 people, all of whom are from the locality. It provides part-time employment to many students who balance that work with their college life. Many people had their first job there. The business owner makes the point that the proposed business scheme will go nowhere close to addressing the serious issue faced by his business and many others. The business will not qualify as it is over the €20,000 rates threshold, notwithstanding the fact that it very much operates a low-margin and labour- and energy-intensive business where the biggest cost is the wage bill.
That business and many others will soon have to deal with the increased minimum wage, statutory sick pay and, further down the road, pension auto-enrolment. Those are laudable developments and key planks in the programme for Government but, much as we have in society, we need a glass floor through which no people should fall. We should also have a mechanism that ensures businesses that have been the bedrock of local communities for many years are not punished. The business to which I have referred would make the point that its largest cost, namely, wages, increased by 25% as a result of some of the measures I outlined. The measures will add an additional cost of approximately €4,000 per full-time employee, which is significant for a business that typically operates on a margin of 8% to 9%.
The business has done everything humanly possible in respect of packaging and meeting our challenges for the green agenda but it is one of many businesses that will struggle. We need to use the time and space in the coming weeks to tweak the Finance (No. 2) Bill to ensure we do not throw the baby out with the proverbial bathwater.
I am grateful to the Deputy for raising this important matter and for his consistent advocacy on behalf of businesses throughout Ireland, but particularly in his home town and his home county of Longford.
I empathise with many of the points he has made on behalf of the local business person in Longford. There are a few points to address. The first relates specifically to the increased cost of business, ICOB, scheme. It was a major plank of our Department's budget offering a fortnight ago. The scheme is going to be worth €250 million and will apply to 87% of businesses across the State. It is deliberately targeted at small and medium enterprises. That is why the initial decision was to make the scheme available to every business that paid €20,000 or less in commercial rates this year. It gives them the ability to receive half of their rates back in a cash grant of up to €10,000 in the first quarter of next year, with minimum administration, minimum fuss and cash going direct to the source.
We acknowledge that there are serious costs associated with doing business in this State. That runs parallel to the extremely strong economy we have, with the rapid economic growth that we have seen in Longford and the creation of hundreds of jobs in the last 12 months, much of which is down to the Deputy's own advocacy. It runs parallel to the new businesses created in tandem with the Deputy's local enterprise office, LEO, which I was fortunate enough to visit in August, as well as the consistent work done to make this an open and thriving economy. Businesses are doing well, but we acknowledge the costs. We acknowledge that as the Deputy has outlined, many of those costs are costs that are being brought in by this Oireachtas, such as the increase in the minimum wage as per the recommendations of the low pay commission, the move from three days of paid sick leave to five days on 1 January, the additional bank holiday on St. Brigid's Day and the introduction of pension auto enrolment in 2024. They are all adding to businesses' costs, but there is a return on those investments. I know the Deputy shares my belief that there is always a return on those investments. As we move towards a living wage of 60% of the median average income, it will ensure people stay in those jobs, which are good jobs that they can maintain. We will ensure that they can return resources back into the economy, and with pension auto enrolment, we will ensure that they can prepare for their later days, which present so many difficulties for the State.
That is why the ICOB scheme is just a small effort towards alleviating those costs, as well as rising energy costs and rising interest rates. That is why it is focused on those who pay commercial rates. We are due to see energy costs come down in the next few weeks due to the decline in wholesale prices. We have seen a lot of moves from the major energy providers, although I think we all share the opinion that many of the energy providers could indeed go further.
A number of other supports were brought in for businesses in the budget. I want to refer to them briefly before I conclude and I might go into a bit more substance in the supplementary reply. We provided increased funding of €9 million to the LEOs to help them work with local businesses, and not just new businesses but businesses of up to 50 employees. There is increased funding for Enterprise Ireland and increased resourcing for Microfinance Ireland. We have raised the VAT registration threshold for SMEs to €40,000 for services and €80,000 for goods businesses. The accelerated capital allowance regime for energy-efficient equipment has been extended to 2025. There are new and improved grants available through the Sustainable Energy Authority of Ireland for businesses that want to reduce their energy bills. Across the board, there is an opportunity for businesses to avail of cheaper finances and grants and to play their part in making sure that we can continue to make this economy grow. The ICOB scheme is just one element in the entire budget that acknowledges the rising costs of business. I think those of us who are present in the House are all in agreement that making sure our economy grows and that we remain an open and attractive economy is what will benefit all businesses in all towns and cities across our State.
I thank the Ceann Comhairle for the opportunity to come back in. When I talk about retail, it would be remiss of me not to mention my late mother. She ran a shop all her life and worked herself to the bone. I remember that when I was thinking of dropping out of school, she gave me very salient advice. She said if I wanted to find out how popular I was, I should open my open business or go into politics. Sadly, I did not listen to her. That is just an aside.
These businesses are very much the bedrock of rural Ireland. They are the shops and the retailers that were there through Covid and looked after us. They are the small local businesses and medium businesses that can reach out to the elderly and those who are struggling with mental health issues. People I have spoken to have told me that they shop in a particular shop, and only reason they go there is because the staff stop and say hello to them. These businesses are doing untold work for our society and communities.
We have had many achievements, but we really cannot be let it be a stain on the legacy of this Government that we made it harder for these businesses to do business in rural Ireland. Certainly, we welcome the ICOB scheme. It has a lot of merit in it, but it does exclude some businesses. I fear that it is not going to go far enough in the scale of supports that these businesses need. In fairness, the businesses are not coming, cap in hand; they are coming with a proposal. Over the coming weeks we have an opportunity to look at the proposal for the abolition of PRSI for lower-earning workers over a three-year period in 2024, 2025 and 2026. I think that would give these businesses sufficient opportunity to come to terms with the increased costs. More importantly, it would also be of huge benefit to those workers in terms of the challenges that they face economically as well. It is a point that these businesses have articulated to me and it is one that I hope the Minister of State can bring back to the Department of Finance to put some meat on the bone. I think it is a realistic and viable solution for these businesses in the challenging 18 months ahead.
I thank the Deputy for the tone of the debate and indeed for the constructive proposal. It is constructive, but it will require quite a bit of reflection from the Government in relation to the abolition of PRSI for lower-paid workers. It would come at a cost, today as well as in the future, and we have to bear that in mind. I will bring it to the attention of both the Minister for Social Protection and the Minister for Finance for reflection.
The Deputy mentioned his mother growing up as a shopkeeper. The Ceann Comhairle and Deputy Durkan will know Gillespie's in Baltinglass very well, in the neighbouring county to them. That is where my father grew up, over the shop where my granddad was manager down below, working six days a week. They took Sundays off in those days. That instilled in me the respect and understanding that retailers are some of the hardest workers in our society. Nowadays, they are working seven days a week, often long and late hours filling shifts and dealing with many costs. Through my role as chair of the Retail Forum, I work with individual retailers, their representative groups and their suppliers on a daily basis. One thing that we have put huge focus on is the online retail scheme. The intention is not to replace the bricks and mortar store or to force it to be solely an experience-led activity, but to make sure that we can use the Internet to drive more people through into traditional retailers.
In relation to the ICOB scheme, we will use these next two weeks to make sure that we do not leave anyone on the margins and that those who are there or thereabouts in relation to the €20,000 will be open for consideration. It is under real reflection. The one thing we want is a scheme that works for as many businesses as possible in a manner that is impactful and that can be delivered in the first quarter of next year, just when many businesses are finding things tough. I really appreciate the Deputy's input today. I will feed what I can in to other Ministers and take it on board in my own role as well.
Financial Services
I thank the Ceann Comhairle for allowing me to raise this particular issue, and the Minister of State for coming into the House to address it. It relates to a meeting which the finance committee had with the Governor of the Central Bank of Ireland and his officials some time ago, wherein he shed some considerable light on the way lending agencies were expected to treat their customers. What is emerging now is a new and aggressive regime in respect of some impaired loans, some of which were in payment constantly and some of which were not, and some of which were affected by the health of the borrowers who were put out of business and unable to continue working. In some cases it is alleged that the borrowers never engaged. In these cases, the borrowers engaged all the time and repeatedly, and found it very difficult to engage. They found that they could be waiting for somebody to answer the phone for 20 minutes, half an hour or more, and maybe then the person was not there or there was a different person there.
What is happening now is that agencies have adopted a new and aggressive attitude, and they are pushing for repossession in a lot of the cases where there should have been a solution found to meet the needs of the borrower and the lender. That has not been done. I have to say that bringing it to the floor of the House is deliberate in order to alert the Minister of State to what is going on behind the scenes. We had the issue where there was a proposal to abolish ATMs throughout the country by one lending institution, and it was changed. What is actually happening is that is being done by stealth. Anybody who goes to cash machines anywhere now will find that every second one is out of order. It is the same attitude by stealth.
It is not acceptable. The same attitude can be seen in the number of times that borrowers are being contacted and the manner in which they are being contacted. The effect of the repeated emails and letters is to make every effort to intimidate the borrower into submission. There is a move towards repossession and into receivership in many cases. In a number of cases, really considered proposals were put forward but were either ignored or were put on the back burner and not mentioned at all. In both Pepper and Start Mortgages, these issues are being pushed in a way that has not been seen before. It is timely to bring to the attention of the House their activities and to impress upon all the lending agencies that the people of this country bailed them out in many cases, at great loss and hardship to themselves. A small bit of consideration for the people who bailed out the banking system could now be considered to be timely. Now is the time to do it because it is essential that we stand up for the people who stood up for this country and continue to work hard to stand up for it.
I am very grateful to Deputy Durkan for raising this matter and bringing it to my attention and the attention of the line Ministers responsible. As the Deputy will know, the Government is acutely aware of the pressure that the rising interest rate environment may have on borrowers. In light of this, the Minister for Finance, Deputy Michael McGrath, convened a meeting with lenders that are active in the mortgage market on 31 August last. Representatives of the Central Bank of Ireland, the Insolvency Service of Ireland, the Citizens Information Board and the Money Advice & Budgeting Service, MABS, were in attendance. Following this meeting, on 6 September Banking and Payments Federation Ireland launched the second phase of its dealing with debt campaign to highlight new and existing supports available for mortgage customers.
One of the new initiatives to which the Minister and I would draw the Deputy's attention is the work between credit servicing firms and MABS on a streamlined customer engagement framework to accelerate the agreement of sustainable repayment plans for customers in financial difficulty. The consumer protection framework provides the same protections for borrowers regardless of the regulated entity with which they are dealing, be that a bank, retail credit firm or credit servicing firm. All of these regulated entities must be authorised and supervised by the Central Bank and are subject to the full suite of relevant regulatory requirements and financial services legislation, including the code of conduct on mortgage arrears, CCMA. A broad range of measures are in place to protect mortgage holders as part of this code of conduct, especially those who are experiencing difficulty with their repayments. The CCMA outlines how a lender must act if a borrower is in or is facing mortgage arrears. The CCMA sets out the process that entities must follow when a borrower is experiencing difficulties with their mortgage payments. Due regard must be given to the fact that each case is unique and needs to be considered on its own merits. Regulated entities must explore all of the options for alternative repayment arrangements, ARAs, in order to determine which arrangement, if any, is appropriate and sustainable for a distressed borrower’s individual circumstances.
The range of sustainable solutions being offered to consumers has expanded significantly, including the use of new ARAs, mortgage-to-rent arrangements and personal insolvency arrangements. The CCMA provides for an appeals mechanism, including where the entity declines to offer an ARA, where the borrower is not willing to enter into the ARA offered, or where the entity classifies the borrower as non-co-operating. Appeals can ultimately be referred to the Financial Services and Pensions Ombudsman. The CCMA must be complied with under the law. The Central Bank has the power to take enforcement action against any regulated entity that does not act in compliance with the CCMA. The Central Bank continues to supervise compliance with the CCMA and will investigate any issues that arise, including patterns of behaviour which suggest that the CCMA process is not being followed. Under the CCMA, the lender must contact the consumer about their mortgage arrears in a timely, clear, and consumer-friendly manner; get information from the consumer about their financial situation; assess whether a suitable ARA can be made; and resolve the case by offering an ARA or not doing so. The CCMA has been designed to protect consumers. Regulated lenders are legally obliged to comply with it. The CCMA requires lenders to provide dedicated and specially trained staff in their arrears support unit to manage cases. This includes having any meetings with consumers in private and referring them to their online or hard-copy information. Lenders must also follow the mortgage arrears resolution process, which sets out how lenders must communicate with consumers and assess their situation with the aim of coming to a resolution. It includes having an appeals process in place so consumers can appeal certain decisions of their lender. This is a robust framework that binds all regulated lenders. If the Deputy has evidence that firms are pursuing borrowers contrary to the provisions of the CCMA, the Central Bank of Ireland will consider any such information as part of its supervisory duties.
I thank the Minister of State. I accept the regulations that are in place do not always fit the situation. Invariably we come across situations from time to time in which a proposal is made to the lending agency based on the ability of the borrower to meet it. Invariably it is rejected and the borrower is told it is not sustainable. It is not sustainable for the lending agency, but it is sustainable for the borrower.
I would like to mention another issue. The lending institutions are taking full advantage of the housing crisis in this country by ejecting from their houses as many people as they can in the run-up to Christmas. Needless to say I am not surprised, but it should not and cannot be allowed to continue. I thank the Minister of State for his detailed reply but I suggest it is time to issue a warning of some description to the lending agencies instead of allowing them to treat our House of Parliament with contempt.
The situation regarding ATMs in Leinster House is another example of this. It was decided that not enough money was being made from them. During one of the lockdowns, it was decided to close them all down and take them away. This was in line with the banks' decision to phase out ATMs. The fact is that ATMs are a concession to the customer, of whom there are many in this House. It was short change on the part of the lending institutions to thumb their noses at the House of Parliament and that should not be allowed to go unchallenged.
I will raise this issue again. I am sure others will do likewise because it will emerge to a greater extent as time goes by. They will deny it, but the fact is that numerous proposals were made after careful study and a time-consuming process in order to resolve the problem to everybody's satisfaction at the time. They were all ignored.
I thank Deputy Durkan. There is no doubt that his persistence knows no bounds.
I share Deputy Durkan's frustration about the removal of the ATM from this campus. We both brought it up at a finance committee meeting over MS Teams when that was how we did committee meetings. Thankfully, those days are gone.
They may come again.
Regarding the matter raised by the Deputy, first and foremost the Government would encourage any person who has experienced a repayment difficulty or has any other genuine concern about their mortgage to contact their mortgage creditor to discuss the matter in the first instance. Of course, it is also essential that the Central Bank-regulated entities, irrespective of whether they are banks, retail credit firms or credit servicing firms, constructively engage with their borrowers to address any legitimate concerns raised and to act fairly in the interests of their customers. This is a warning from the Government. It should be followed up by the Central Bank, as the Deputy has requested. This is what lenders are required to do under the Central Bank consumer protection framework. It is the minimum standard that Central Bank-regulated firms are expected to comply with.
The Deputy will be interested to know that the Minister for Finance, Deputy Michael McGrath, has tasked officials to review the current mortgage arrears framework. An interdepartmental group has been established to review the framework. The mortgage arrears group comprises representatives form the Departments of Finance; Justice; Housing, Local Government and Heritage; and Social Protection. The focus of the group will be to consider the impact of the mortgage arrears framework and the current resolution options across the agencies and bodies, and to recommend refinements and improvements to better address the economic and social impact of mortgage arrears. The mortgage arrears group has commenced its work and will report on its review during the second quarter of 2024. I thank the Deputy again for bringing this matter to the House.
Water Quality
The next item selected comes from Deputy Ó Cathasaigh who wishes to discuss the Environmental Protection Agency's urban wastewater treatment report, which was alluded to earlier today in the House. Is the Minister of State, Deputy Richmond, taking this item as well?
I thank the Ceann Comhairle. I will make the usual refrain that notwithstanding the excellence of the Minister of State, Deputy Richmond, I know that this is not an area within his Ministry. It is a pity that none of the relevant Ministers is in a position to be able to attend the debate this evening.
Protocol requires the Department responsible to make contact with the Deputy who submits the matter to indicate whether the Minister or a Minister of State in the Department will attend. If that was not done, it is a departure from established procedure, which should not happen.
I will not swear blind that I do not have a notification in my inbox but most Deputies have more to be doing than watching their inbox all day long. If it has arrived, I certainly have not seen it.
This is a welcome opportunity to discuss another in a series of excellent reports from the Environmental Protection Agency, EPA, detailing our water quality. The latest is titled, Urban Waste Water Treatment in 2022. Broadly-speaking, the EPA has been doing an excellent job in assessing the quality of water in our rivers, lakes, streams, groundwater and seawater, and even the water in our taps, which, by extension, finds its way into our bodies. The EPA report is focused on urban wastewater treatment.
It is shocking that we are still not reaching the standards of the urban wastewater treatment directive, which we are supposed to have been complying with for the past 30 years. Raw sewage from the equivalent of 54,000 people is still being discharged in 26 towns and villages because these areas are not connected with treatment plants. The factoid that jumps out from the report is that the volume of raw sewage discharged could fill three Olympic-size swimming pools a day. That is not a place I would necessarily like to swim.
We also have to acknowledge that many so-called "primary" treatment plants are not living up to their name. In fact, the EPA states that over half of Ireland's wastewater discharges are not meeting EU standards for protecting the environment. If the Minister doubts that, he can come down to Bunmahon in Waterford where, mar dhea, we have a primary treatment plant that is supposedly treating the sewage. If he were to check the outlet pipe there, he would not find it a pleasant experience. It is certainly not doing the job it needs to do.
The report also identifies an issue with storm water. Unfortunately, storm-type weather will become more prevalent and more common. At the end of 2022, Uisce Éireann had assessed 1,735 of its storm water overflow structures. There were no assessments completed during 2022. I do not know the reason for that. Over 400 of the overflows assessed did not meet the national standards and require improvement. We could point to Blackrock in Dublin if we were looking for an example of a place which is regularly overwhelmed by storm flow. I would not have to travel outside of Tramore. In fact, at the bottom of my road, the inadequate treatment of storm water often results in an overflow that discharges directly beside the wall of Tramore pier. It is not a pleasant sight.
The EPA report identifies key priorities and challenges. We have to comply with EU treatment standards. We have to eliminate raw sewage discharges. It is amazing, in this day and age, that I need to utter such a sentence. We must improve our collecting systems, that is, sewers, prevent pollution of our inland and coastal waters and protect vulnerable habitats.
The report includes a summary of key recommendations. The EPA recommends that we resolve the environmental issues for each priority area set out in the report; operate all treatment systems effectively to get the best from them, minimise breakdowns and prevent any deterioration in performance; and complete the overdue impact assessments for shellfish waters. The latter would affect Dungarvan in my constituency.
What plans does the Government have to respond to this and other excellent reports from the EPA?
I will pass on the Deputy's frustrations to the relevant Ministers in the relevant Department. Having been that soldier for long enough, I know how it feels. I will do my best to give the reply justice.
I thank the Deputy for raising this matter. I agree with him that this is an excellent report. It arrived on my desk because it relates directly to my role in the Department of Enterprise, Trade and Employment and impacts on many commercial activities and the health and well-being of many employees throughout the country.
Since 1 January 2014, Uisce Éireann has had statutory responsibility for all aspects of water services planning, delivery and operation at national, regional and local levels. Uisce Éireann’s primary function is to provide clean safe drinking water to customers and to treat and return wastewater safely to the environment. In turn, the Environmental Protection Agency holds Uisce Éireann to account for its environmental performance. The EPA is responsible for monitoring and enforcing compliance with the necessary quality standards for the collection and treatment of wastewater.
As part of budget 2024, secured funding of over €1.6 billion is being allocated to Uisce Éireann to support water services. The national development plan commits to almost €6 billion capital investment to be undertaken by Uisce Éireann in the period from 2021 to 2025, of which over €4.5 billion will be voted Exchequer funding in respect of domestic wastewater services. This overall investment will deliver significant improvements in our public water and wastewater services.
Many serious challenges remain, which will take significant investment to deliver infrastructure to ensure compliance with the requirements of the urban wastewater treatment directive. The EPA report notes that there is a long and complex programme of work ahead to deliver a wastewater service that fully meets the required standards.
Uisce Éireann’s investment will deliver significant improvements in our public water and wastewater services, support improved water supplies across Ireland, including rural areas, and support a range of programmes delivering improved water quality in our rivers, lakes and marine area, such as Blackrock and, indeed, Tramore. It is key to addressing Ireland's shortcomings in water and wastewater infrastructure, including compliance with the urban wastewater treatment directive.
Over 90% of Ireland's public wastewater plants are compliant with the urban wastewater treatment directive. The vast majority of the total wastewater load that is not yet in compliance with the directive requirements comes from one treatment area, the Ringsend wastewater treatment plant serving Dublin and the surrounding area. Uisce Éireann is currently investing over €500 million in the staged upgrading of the Ringsend wastewater treatment plant. This will deliver the capacity to treat the wastewater for a population equivalent of 2.4 million while achieving the standards of the urban wastewater treatment directive by 2025. Uisce Éireann also has plans in place to address any outstanding issues at the remaining non-compliant plants.
Wastewater has been identified by the EPA as a significant pollution pressure on almost 200 water bodies. However, wastewater is not the only pollution pressure on many of these water bodies. Other pressures include agriculture and forestry. Thirty-nine of these have been identified by the EPA as areas where Uisce Éireann should prioritise its work. Upgrades to treatment infrastructure at ten of the priority areas are either ongoing or due to begin within the next two years. The treatment plant at one priority area was upgraded recently and monitoring is being carried out to assess if the upgrade has resolved the risk of pollution. Uisce Éireann is in the preliminary stages of designing action plans to resolve the risk of pollution at the remaining 28 areas.
There are an estimated 2,447 storm water overflows on our wastewater collection system. By the end of 2022, Uisce Éireann had assessed almost three quarters of these against national standards, while monitoring equipment had been installed on 888 overflow outlets. This work will help our urban areas in adapting to a changing climate. However, these projects are complex, particularly in cities, and will take considerably longer to address.
Notwithstanding my initial frustration, I recognise that the Minister of State, Deputy Richmond, is well placed to understand the imperative for action, in particular, on urban wastewater.
I often use the analogy of high blood pressure as opposed to having your front teeth knocked out. Someone who has their front teeth knocked out will act on it straightaway because everybody can see it. However, people will live with high blood pressure for years and, eventually, it is what will kill them. It is very similar with our infrastructure investment. If someone has a pothole in front of their house, they will get it filled straightaway, if they know a politician and can get them on the end of the phone. However, critical infrastructure, such as our grid and water infrastructure, is far less visible, and because it is far less visible, the temptation is there not to invest in it in the same way. Ultimately, however, it is what will kill the economy. The Minister of State will be aware that when businesses, particularly large ones, are getting established in the economy, they look for a reliable supply of electricity and clean water. It is imperative, therefore, that we tackle this issue.
My concern is that the report, although excellent, only looks at urban wastewater treatment. I fear we are only seeing the tip of the iceberg here. I questioned representatives of Uisce Éireann at a meeting of the Committee of Public Accounts earlier. I asked about the number of septic tanks being inspected by the local authorities. The percentage is minuscule. That feeds into the issue of private wells, for which the responsibility lies on the well owner. There is no registration or reporting and, therefore, we do not have a good picture of what is happening in these private water supplies.
I am glad that the Minister of State referenced that this is not the only pressure. Agriculture is a particular pressure. I know this was discussed with the EPA at a recent meeting of the Joint Committee on Agriculture, Food and the Marine in what was quite a fractious environment. It is imperative that we use an evidence base when we are formulating policy. This policy should certainly be towards investment in this infrastructure for now and for the future.
When it came to choosing a career in politics, I do not know if blood pressure or my front teeth were more at risk but, hopefully, neither of them are. I am sure we share this sentiment across the House. I appreciate the clarity and sincerity the Deputy brought to this debate. Being a Minister of State with responsibility for business, I know this is key for attracting inward investment and making sure we have clean, safe and reliable water, not just for personal use but also for commercial use, particularly in our growing industries.
I assure the Deputy that the programme for Government commits to funding Uisce Éireann's capital investment plan for drinking and wastewater infrastructure on a multi-annual basis. Delivery of a funding package is committed to in Project Ireland 2040. The National Development Plan 2021-2030, published on 4 October 2021, commits to almost €6 billion capital investment to be undertaken by Uisce Éireann from 2021 to 2025. Over €4.5 billion of this will be Voted Exchequer funding in respect of domestic water services, which are also referenced under the Housing for All plan.
Uisce Éireann is well aware of its responsibilities to the House, the Government, the Exchequer and, more importantly, the people of Ireland. I will take the Deputy's well-stated and well-elucidated remarks back to the relevant Ministers and will continue, as a Minister of State with responsibility for business, to keep the pressure on to make sure that this capital investment does not fall by the wayside. Regardless of any economic ups or downs, what is committed in Project Ireland 2040 has to be delivered.
Educational Disadvantage
I thank the Minister of State, Deputy Richmond, for taking this matter. I was contacted by the office of the Minister of State, Deputy Madigan, earlier. I will take a wild guess that I might not be particularly impressed with the reply that is given, but I do thank the Minister of State for being here. From my point of view-----
The Deputy must be optimistic. He has not got it yet.
Well, I am going to take a wild guess. I have a reply to a parliamentary question that provided me with some information prior to this. This matter relates to Scoil Bhríde Lann Léire. I visited the school and the relevant issues were pointed out to me. Rather than repeating how I responded to those issues, I will put on record the letter that was sent to me initially. It states, "Good morning Ruairí, I hope this finds you well. I'm contacting you because our school didn't received DEIS status in the latest round but our feeder secondary school, Scoil Uí Mhuirí achieved it". Scoil Mhuirí is also in Dunleer. The letter goes on to state:
We tick the boxes for DEIS status and I have spent the last 14 years lobbying quietly for it. I've been advised the latest DEIS status was given to schools on the basis of the 2016 census.
However, we have had a new social housing estate built behind our school and there is planning permission for 40 more to be built. Even without this new build, we have always believed that we are deserving of being a DEIS school, the reasons for which I would like to explain to you.
There are a lot of schools who are genuinely disappointed and feel unfairly treated and like us are struggling. We lack the funding and personnel to meet the needs of everyone - pupils, staff and families. Staff morale is at a low and my time is taken up with trying to manage things, but my chief role should be to lead teaching and learning.
This is what we would hear from many principals about making sure that they can operate a school that can wash its own face and does not face significant issues.
Other issues that were brought to my attention by the principal included the grants calendar and the fact that the cost of living has increased but the capitation grant has not. The capitation grant is based on enrolment figures, but the building still needs to be heated regardless of the numbers in the school. We will always get anomalies on a year-by-year basis. This is an old building with a very old heating system. You will hear all those issues, including the fact that from time to time, the school cannot change the heating system to one it would like and is trying to keep this going - probably by using bailing twine and whatever else.
When I spoke to staff at the school a number of weeks ago, they told me that the school is still waiting for the refund for its secretary's salary paid over the summer. We need to make sure these pieces work a lot better. It will always be difficult for people to understand how the secondary school, which will have a similar cohort of children, can achieve DEIS status while others will not. Another school in the vicinity is Monastery National School in Ardee, which traditionally would have been the boys' school. This school got DEIS status but Scoil Mhuire Na Trocaire, which would have been the girls' school, did not. Again, this causes significant issues.
Regarding the DEIS identification model in the future, the reply to my parliamentary question said that:
In addition to this, following the National Census 2022 held in April 2022 it is envisaged that an updated HP Deprivation Index will be generated by Pobal and will be available in Q4 of 2023. My Department will engage with Pobal in relation to this process. The updated HP Deprivation Index can be considered by my Department to inform future resource allocation to tackle educational disadvantage.
We really need to look at a better way of dealing with this. There are far too many anomalies and I think the Minister of State will agree regardless of his answer.
I am very grateful to the Deputy for raising this case of Scoil Bhríde Lann Léire in Dunleer. I appreciate his consistent advocacy on behalf of this school and the town of Dunleer.
The Department of Education provides a wide range of supports to all schools, DEIS and non-DEIS, to support the inclusion of all students and address barriers to students achieving their potential. Supplementing the universal supports available to all schools, the DEIS programme is a key policy initiative of the Department to address concentrated educational disadvantage at school level in a targeted and equitable way across the primary and post-primary sector.
Schools that were identified for inclusion in the programme were those with the highest levels of concentrated disadvantage as identified through the refined DEIS identification model, which is an objective, statistics-based model. Schools were not required to apply for inclusion in the DEIS programme and the model was applied fairly and equally to all schools.
Schools that were not satisfied with the outcome following the application of the DEIS identification model to their school enrolment data were provided with the opportunity to have that outcome reviewed. The DEIS appeals process was applied fairly across all appellants, however, this school did not appeal at that time. The window for appeals has now closed and the results, as the Deputy may be aware from parliamentary questions, are final.
The extension of the DEIS programme to new schools is just one component of work in the Department’s vision for an inclusive education system that supports all learners to achieve their potential. The Department has invited the OECD Strength Through Diversity: Education for Inclusive Societies project to review the current policy approach for the allocation of resources to support students at risk of educational disadvantage in Ireland. This review will provide an independent expert opinion on the current resource allocation model for the DEIS programme and inform a policy approach for allocation of resources to support students at risk of educational disadvantage attending all schools.
A number of measures were introduced in the budget to reduce the cost of education such as the provision of free school books for all primary and special school pupils and funding for hot meals. Crucially, as part of the cost-of-living and capitation funding package in budget 2024, the Department of Education secured €21 million as a permanent increase in capitation funding to assist schools now and in the longer term with increased day-to-day running costs. The first-year cost of this increase is €7 million and the full-year cost in 2025 is €21 million, combined with €60 million in cost-of-living funding bringing the total to €81 million. This will support a permanent restoration of funding for all primary and post-primary schools from September 2024. This will bring the basic rate of capitation to €200 per student in primary schools and €345 in voluntary secondary schools. Enhanced rates will also be paid in respect of pupils with special educational needs. This represents an increase of circa 9.2% of current standard and enhanced capitation rates.
That is the answer I anticipated. Dealing with the wider issue of DEIS, we all know that there are lies, damned lies and statistics. There will always be anomalies. I often think of Dundalk, where there is absolute deprivation side by side with people who are in a different socioeconomic bracket. The average, therefore, does not necessarily reflect the reality on the ground for some people. There needs to be an element of flexibility in the appeals process and, beyond that, there needs to be flexibility and a re-examination with regard to how DEIS is addressed. The whole idea behind DEIS to facilitate children and provide extra resources to schools so that they can provide the best education for children, particularly those in deprived areas.
I have thrown out some of the issues regarding new estates that have been built and so on. I accept that there will always have to be rules, regulations and criteria but we have to find a better way to look at this because we all hope that, in the future, we will be dealing with many new builds, whether for social housing or otherwise. We, therefore, need to make sure this happens.
There are very specific issues with regard to this school. We are talking about an older legacy building and its heating system. We need to find a means of dealing with that. If we are looking at the model for identifying DEIS eligibility, it would not make sense not to deal with all of these issues that we have at this point in time. I ask the Minister of State to talk to the relevant Ministers about looking at this school specifically to see if there is anything at all that can help them through the gap. The principal is under severe pressure to keep the school going and is trying to make sure the kids can get the education they require. The Minister of State can imagine what staff morale is like and the pressures they are facing.
Of course, I can imagine that. Everyone in this House deals with these issues every day and I have nothing but empathy and sympathy for principals, staff members, the schoolgoing children and their families and, indeed, the Deputy and his staff, who have to deal with this matter. That is why I will undertake to bring this to both the Minister, Deputy Foley, and the Minister of State, Deputy Madigan, who are absent, to make sure the case he has put forward so eloquently this evening is relayed to them in a proper and timely manner.
More widely, the Department of Education is progressing work on considering the allocation of resources to all schools. The OECD review will be complemented by a programme of work by the Department that will consider the allocation of supports within the DEIS resource model. This will involve consultation with stakeholders, including school communities. Scoil Bhríde Lann Léire will be very welcome to participate in that process. Along with the Deputy and everyone else in this House, I appreciate more than most the pressures on school principals, particularly in difficult schools or where they are teaching principals. While there is a rigidity with regard to appeals, we always need to be empathetic to the situation they are coming from and to react responsibly as we try our best, as both advocates and legislators, to make their lives a little bit easier and to make things easier for those communities in which they are teaching.
The work I have mentioned will be considered by the Department and Minister as part of wider policy formulation aimed at supporting all students, regardless of socioeconomic background, through their education and to achieve their potential. I do not need to go into the details of them because the Deputy will be aware of the many increases in teachers, special needs assistants and funding within the programme but these are also crucial in continuing investment in all education in this State.