I welcome the Minister for Finance, Deputy Michael Noonan, to the House after his busy few days.
Adjournment Matters
Flood Relief
I am glad to have the opportunity to raise the issue of the need for negotiations with insurance companies, in particular in the light of my experience dealing with constituents during the past two years. There was severe flooding in Cork just over two years ago, in November 2009. After that, vulnerable individuals saw their homes destroyed as a wall of water came through the city. Flooding is and has been common in Cork which is built on marshland by a river. There are occasional floods due to the combination of high tides, river flow and high winds.
However, this occasion was completely different. There was a low tide and the cause of flooding related to the Inniscarra dam further up the River Lee. Insufficient warning was given and it is my view that there was insufficient monitoring prior to the occasion. As a consequence, many homes and small businesses were destroyed. Some have pulled it back together, while others have not yet received sufficient compensation to get back to their previous position.
My particular point is that when many individuals in the region seek quotes from insurance companies in Cork they are told the companies will not reinsure them or provide them with cover. This is in spite of the fact that areas in which these homes are located may never have flooded and lie away from the flood plain.
I contacted the Irish Insurance Federation on the matter of flooding and was told by Mr. Michael Kemp, chief executive of IIF, that in regard to flooding in general: "We are working with the OPW and with Minister Hayes to improve the flow of information between insurers and the OPW and that this should help to prioritise areas where flood defences can usefully contribute to improved insurability of our members." The federation is also discussing with the Minister of State a possible enhancement to this service by putting in place agreed procedures for the reconsideration of cases where flood cover has been restricted or withdrawn, notwithstanding remedial works being carried out, if the works have altered the risks appreciably.
I would like the conversation between the Department and the Insurance Federation to take place in order to reassure insurance companies that flooding will not take place again and that sufficient warning systems have been put in place. Only last week Cork County and City Councils and the ESB agreed to work together to monitor the flow of the river, rainfall and the level of the upriver reservoir. There will be three authorities involved in monitoring in an effort to ensure that such a situation will not arise again. That is positive action. A great deal of information could be transferred to the Irish Insurance Federation that would give it some comfort. There are many innocent bystanders in this situation, which can be rectified by dialogue and communication.
I am responding on behalf of the Minister of State, Deputy Brian Hayes, who has responsibility for the OPW. He is involved in the budget debate in the Dáil.
I thank Senator Clune for raising this important issue. The Government is well aware of the hardships suffered by families in Cork and elsewhere as a result of the severe flooding in 2009. It must be stated at the outset that the decision to provide any specific form of insurance cover and the price at which it is offered is a commercial matter for individual insurance companies, based on an assessment those companies make of the risks involved.
The Irish Insurance Federation has informed the Department of Finance that approximately 98% of households that currently hold household insurance have flood cover. The federation points out that insurance companies examine the claim's history of the individual risk when deciding what underwriting action to take. They also look at any flood protection measures implemented by the local authority or the Office of Public Works in the area. They say that where the flood risk is higher than normal people will generally pay a higher premium.
As stated in a reply to a parliamentary question on 8 November 2011, neither the Central Bank nor I have the power to compel insurance companies to quote for business. The Minister has no power to impose a maximum level of premium that the insurance company may charge.
The structured arrangement put in place last year between the OPW and the Irish Insurance Federation with a view to improving the exchange of information between both bodies is critical in order that insurance underwriters are aware of what has been done in different parts of the country to address flooding problems. Such arrangements also help the OPW to prioritise its remedial works which, in turn, provides greater reassurance for the industry that the problem areas are being addressed in a structured way. This progress should lead to a greater willingness to offer cover in marginal areas.
In this regard, the OPW has provided information on works carried out under the 1945 and 1995 Arterial Drainage Acts and capital works carried out nationally since 1996. In addition, the OPW has updated the Irish Insurance Federation on details of areas where works have been carried out on the minor works scheme initiated in 2009. Most recently, the Office of Public Works shared with the IIF the national data set arising from preliminary flood risk assessment. The OPW has held a number of discussions with the federation during 2011 and has proposed a mechanism whereby the scope and causation of difficulties in obtaining flood insurance cover could be quantified and co-analysed with the federation. The federation is to respond to this proposal.
I turn to the Cork area, to which the Senator referred in her statement. An important initiative is the draft River Lee catchment flood risk management plan which includes recommendations for the management of flood risk for Cork city and a number of other areas in the River Lee catchment. A tender short list of consultants to take forward the detailed design of the recommendations for Cork city has been established. In 2010, the Office of Public Works, expended approximately €6.9 million in the Cork area between construction and development of major flood relief schemes and also several commitments under the minor works scheme. The 2011 figure has remained steady and approximately €12 million is profiled for 2012 for the Cork area.
In 2010, at the request of the OPW, interim measures were put in place for the operation of the River Lee dams for the winter of 2010-11. This involved reduced spill levels at both the Inniscarra and Carrigadrohid dams. The interim arrangements will continue for the winter of 2011-12, while the ESB will keep them under review to determine their effectiveness.
The ESB attended an emergency management exercise in Cork at the end of June, at the request of Cork City Council. This was also attended by the Garda, Health Service Executive, HSE, fire brigade staff, Army and various council officials. The communications protocol that had previously been developed as part of the interagency group discussions in Cork was used during this exercise.
I referred to the minor flood mitigation works scheme. Under this scheme, the OPW provides funding for local authorities to undertake minor flood mitigation works or studies to address localised flooding in their administrative areas. The scheme generally applies to relatively straightforward cases where a solution can be readily identified and achieved in a short timeframe. Under the scheme, applications are considered for projects that are estimated to cost not more than €500,000 in each instance. Funding of up to 90% of the cost is available for approved projects, with the balance being funded by the local authority concerned. Local authorities submit funding applications which are then assessed by the OPW having regard to the specific economic, social and environmental criteria of the scheme, including the cost-benefit ratio. The commencement and progression of all funded projects is a matter for the respective local authority.
In 2010, Cork County Council was allocated over €1.3 million under the minor flood mitigation works scheme for measures to address localised flooding problems. Cork City Council was allocated €900,000 to upgrade and undertake repairs to the quay walls in the city. Considerable investment has taken place and co-operative structures are working well, with a view to mitigating any home insurance issues arising from flooding in the Cork area.
I welcome the fact that a proposed mechanism is in place whereby the scope and causation of difficulties in obtaining flood insurance cover would be quantified and analysed. I look forward to the insurance federation's response.
Higher Education Infrastructure Funding
St. Angela's College, Sligo, is a fine college that has developed from a traditional home economics college built originally for a small number of students. In the past 20 years, it has extended its business. Now it has 1,000 students with a wide variety of interesting courses including nursing, child care, its traditional home economics core, textiles, fashion and design, food and business management along with a variety of postgraduate courses in subjects such as special needs education, youth and family studies and religious studies. The college has been to the fore not just in the innovation of the sorts of courses it offers, but it has been tailoring courses specifically looking for niches in the education market. It has also invested in the necessary technology and equipment required to run courses with a technological base. It has an extremely dedicated and hard-working team headed by Dr. Anne Taheny.
As a consequence of all its efforts, in 2010 the college received an allocation of €4.3 million for remedial and health and safety work on the campus, not for some cosmetic project to make students more comfortable or give them a cushier life. Parts of the roof, for example, are seriously dilapidated and access to it for vital maintenance works is dangerous. Insulation in some of the buildings, which date from the 1970s, is either poor or non-existent. Some of the windows are broken. I must concede that Sligo, a bit like Cork, is one of the damper parts of the country and, as a result, the energy costs for the buildings are higher than normal. New ramps and stairways are required and the current lift does not comply with National Disability Authority guidelines for such structures. Another lift is required for the number of students and the potential for students with disabilities. Fire regulations in some parts of the buildings are not up to scratch and some of the office accommodation is overcrowded and falls short of health and safety guidelines in the workplace.
In short, these remedial works are essential. The college, in response to the €4.3 million allocation, is tender ready and the buildings science report is complete with all plans and so forth in place. The team at the college has worked away without complaint. The college has a fine future. The irony is that it needs this building work to secure that future. It is not appropriate for either a student or staff member to be carried up or down a stairs in the event of an emergency. Neither is it appropriate that people are working and studying in a place in which fire regulations are falling short of necessary standards. What is the status of the allocation of €4.3 million to the college?
I am replying to this Adjournment matter on behalf of my colleague, the Minister for Education and Skills, Deputy Ruairí Quinn. I thank the Senator for giving me the opportunity to address the House on this matter.
On 10 November, the Government published details of its capital spending plans for up to 2016. Owing to the difficult budgetary situation, the level of capital funding available for investment in higher education infrastructure provides only for funding higher education projects where there are legally binding contractual commitments. A project in design at St. Angela's College, Sligo, has not reached the point of being a legally binding contractual commitment with the result that apart from funding for fees incurred to date on the project, there are no resources available to fund the project at this time.
Soaring birth rates are putting unprecedented demands on our schools infrastructure. Recent birth rate data for the first quarter of 2011 alone show that 19,950 births were registered. It is vital the schooling system is prepared to cope with these increased numbers. Accordingly, it has been necessary for the Department of Education and Skills to focus the capital investment available on ensuring every child has access to a physical school place. The result is that there remains only sufficient funding to deal with contractual commitments arising in the higher education sector.
The overall capital needs of St. Angela's College, Sligo, were quantified in 2006 at €17.5 million. For a higher education institution with a student population of less than 1,000 this represents a substantial investment. A more modest proposal emerged more recently which aims to provide lifts to address access for all issues and to tackle some refurbishment works. The all-in costs of the more recent proposal amounted to €6.5 million with the works split into two phases. Approval was given to commence design for works valued at €4 million in October 2010.
However, the project had not reached the point of being a contractual commitment when the curtailment on spending in the higher education sector became effective earlier this year coinciding with the Government's announcement. There is funding available to meet design costs incurred to date on this project. These will be paid when the relevant details aresubmitted. The Minister realises the serious impact that not proceeding with this project at this time is likely to have on St. Angela's College and the additional challenges it will present. In light of the constraints on capital funding regretfully there are no alternatives at this time, however. Any potential future commitment to such works will have to be considered in the context of the national strategy for higher education, that is, the Hunt report.
Despite this difficult news, St. Angela's College has been the beneficiary of investment of almost €2 million dating back to 1999. This investment has enabled the carrying out of a range of works, including the renovation of food laboratories at the college, the removal of asbestos, and addressing health and safety concerns. In addition, the Health Service Executive invested close to €9 million in delivering new nursing facilities at the college which were opened in2007.
As I said, I acknowledge and regret the impact that this decision will have for this college and the additional challenges that it will present, but in light of the capital allocations available for investment in higher education infrastructure generally up to 2016, there is no other option available at this time. I thank the Senator once again for raising the matter.
It is most disappointing in light of the fact that, as I stated, the project in hand is not a vanity one. On the legal requirements, it is puzzling to find a building which pays staff and invites students to come in where there are difficulties with fire and health and safety aspects. I do not know what the ramifications of that are. Obviously, the college will take the response and will look to the potential of the Hunt report. Perhaps there is scope, through the Hunt report, for the viability of the college to be reconsidered. I thank the Minister of State.
School Staffing
I wish to share two minutes of my time with Senator Ó Domhnaill, if that is acceptable.
One of the more worrying aspects of the announcement of the budget was the information leaflet circulated by the Minister for Education and Skills, Deputy Quinn, related to the staffing schedules for one, two, three and four teacher schools, that is, schools with fewer than 86 pupils. Apparently, and we do not have the full information, the adjustments in the budget will increase the minimum number of pupils required for the allocation of teaching posts, and the Minister has stated that this will affect 100 posts next year.
I want clarify on the following. Will 100 posts be dropped from these small schools? Where are these small schools? Why is the Government targeting small schools? Why was a spokesperson for the Department of Education and Skills on the "Six One News" the other evening asking small schools to consider their future? What consultation was done with small schools before this announcement?
Does the Minister know that even in what might be called a commuter belt county such as Meath, there are at least 27 such schools? There are another 25 barely above the threshold. There are a number of parishes where there is more than one small school but where the schools are geographically dispersed and not beside each other. For example, in the parish next to mine, the parish of Dulleek, there is at least one small school, and maybe two, in that area. If, as the Government seems to want, these were closed down, there would be a massive capital bill to build a new school at Dulleek, not only to cater for those schools but also to cater for the expansion that is already needed at Dulleek school if small schools are forced to be amalgamated. I do not see how this proposal makes any financial sense. I do not know why this is being done and how money will be saved.
Níl a fhios agam cén fáth go bhfuil an tAire ag déanamh an chinnidh seo. Beidh tionchar na bearta seo i bhfad níos crua ar na ceantair Ghaeltachta i gContae na Mí agus i gcontaetha eile. Beidh a lán daoine míshásta ins na ceantair sin. Is ionsaíé seo ar shaol tuaithe na hÉireann.
Tá lúcháir orm go bhfuil deis agam an t-ábhar tábhachtach seo a árdú anocht. Baineann sé leis an gcinneadh a rinneadh sa cháinfhaisnéis ísliú stádais a thabhairt do scoileanna a bhfuil níos lú ná 86 dalta iontu. Má glactar sampla mo chontae féin, cé go bhfuil 180 scoil i gContae Dhún na nGall, tá 42 des na scoileanna náisiúnta sin i nGaeltacht Dhún na nGall. As an 42 scoil sin, tá 32 a bhfuil níos lú ná 86 dalta iontu. Tá láir na scoileanna beaga i gceantair tuaithe sa Ghaeltacht ag cur na Gaeilge, agus oideachas tré mheán na Gaeilge, chun cinn.
De réir mar atá leagtha amach ag an Roinn Oideachais agus Scileanna agus ag an Aire, an Teachta Ruairí Quinn, beidh poist á chailleadh. Tá sé i gceist go mbeidh 100 phost á gcailleadh i scoileanna beaga an bhliain seo chugainn agus beidh thart fá 250 post á gcailleadh ins na scoileanna sin thar cúpla bliain, suas go dtí 2014.
Is buille trom é sin. Tá an Rialtas ag rá go mbeidh coigilt de €1.5 milliún ar fáil an bhliain seo chugainn, ach coigilt é sin a chuirfidh isteach ar an teanga agus ar scoileanna beaga agus is mór an náire é a dhéanamh.
Impím ar an Aire Stáit éisteacht a thabhairt dos na múinteoirí agus do Eagraíocht na Scoileanna Gaeltachta. Labhair príomh fheidhmeannach na heagraíochta sin inniu agus dúirt sí go gcuirfeadh seo isteach go mór ar cheantair Ghaeltachta.
I appeal to the Minister of State to review this decision. There are 180 primary schools in Donegal, 42 of which are in the Gaeltacht. Of those 42 schools, 32 have fewer than 46 pupils. All of those will be affected. On the objective to remove 100 teachers from their posts with a saving of €1.5 million, it is the wrong way to do it by attacking small rural schools. I appeal to the Minister to rethink these proposals.
I am taking this Adjournment matter on behalf of my colleague, Deputy Ruairí Quinn, Minister for Education and Skills. I thank both Senators for raising the matter as it affords me the opportunity to outline policy on small primary schools.
First, I will deal with the context of the expenditure measures announced on Monday. The requirement to achieve savings in the Department's 2012 budget necessitated difficult decisions to be made, particularly at a time when the school-going population is increasing. Difficult choices had to be made in every programme of expenditure. It was a key priority of the Minister to shield, to the greatest extent possible, front-line services in schools. This is evidenced by the fact that there has been no increase in the general average of 28:1 for the allocation of classroom teachers at primary level for 2012-13. Nevertheless, the increase in the number of children to be accommodated in our schools meant that making some adjustment to teacher numbers was unavoidable given the budgetary constraints. As small schools benefit disproportionately from lower class sizes, the fairest way to achieve the required adjustment was to increase the thresholds for allocation of classroom teachers in small schools in order that they would be more closely aligned to the thresholds in the larger schools. The budgetary measure was simply achieving the required savings by distributing the available resources as equitably as possible. This re-alignment is being done on a phased basis over a three-year period. The phasing of these measures provides the schools concerned with time to consider their future staffing levels and to explore the potential for amalgamation with other schools where this is feasible.
It is important to emphasise that no small schools will be closed due to the changes that have been announced. There are a significant number of small schools across the country. Last year 836 schools had less than 100 pupils. Interestingly, County Galway is the county with the most small schools.
The existing staffing schedule acts as a disincentive for small schools to consider amalgamation and the Minister wants that disincentive removed. This is about ensuring the valuable but limited resources available in the system are used in the best and fairest way across the entire system.
Separately, an exercise involving a value for money review on small primary schools has been under way in the Department for the past year. This is part of the normal review processes undertaken by all Departments on an annual basis on selected areas of expenditure. The review will attempt to explore the general policy options for reorganisation of small schools, including the sharing of resources and clustering arrangements towards small schools. The terms of reference acknowledge the important role that primary schools play in their local communities. In considering any policy change on small schools, the Minister is conscious that there is a wider dimension to be considered in addition to the simple cost of maintaining small schools. Among the issues that will need to be taken into account are questions such as availability of diversity of provision, ethos of schools, parental choice, the language of instruction, travel distances, transport costs and the impact of schools on dispersed rural communities. The review will examine the locations of small schools relative to each other and to other schools of a similar type. It will also examine the costs of running small schools and the educational outcomes associated with small schools.
Educational quality for the students must be one of the main criteria in any consideration of primary school size. We must also consider the needs of local communities and wider social and cultural factors. The value for money review is simply about ascertaining all the facts to inform future policy in this area. Work on the review is well advanced and the Minister expects that the report of the review should be available to him early in 2012. He then must consider its outcomes and proposals. I thank the Senators for raising this matter.
There goes Fine Gael again, succumbing to the ideology of the Labour Party. It has a value for money review under way, yet it has taken the decision and put the gun to the heads of small schools to consider their futures. It is absolutely outrageous that ideology and an anti-rural agenda come before a value for money review. It has put its ideology before the costs. It is terrible that a decision has been made and the gun has been put to the head. Is uafásach an rud atá déanta ar na scoileanna beaga ar fud na tire, agus go háirithe ar fud na Gaeltachta, áit ina bhfuil a lán scoileanna beaga. Roghnaigh an tAire tuairimí Pháirtí an Lucht Oibre thar cionn na costais agus an athchóiriú atáá dhéanamh faoi láthair.
Tá mé buíoch don Seanadóir Byrne as deis a thabhairt dom am a fháil ar seo. Mar a dúirt an Seanadóir, ta sé seo ag cur an rud atá ráite roimh an cheart. Níl réamhobair déanta anseo. Tá an cosúlacht ar an scéal go bhfuil na scoileanna beaga tuaithe á bhualadh ag Aire atá bunaithe i mBaile Átha Cliath, gan aon deis a bheith aige measúnú a dhéanamh ar an obair iontach atáá dhéanamh ag múinteoirí agus scoileanna beaga i gceantair bheaga tuaithe. Is croílár na ceantair tuaithe iad na scoileanna náisiúnta seo agus is ábhar masla é má tá an Rialtas anois ag smaoineamh ar mhúinteoirí a ghearradh, scoláirí a dhíbirt as scoileanna agus cónascadh a dhéanamh fá choinne cúpla pinginí. Is sa bhealach contráilte atá sé ag dul.
Situation in Libya
I welcome the Minister for Jobs, Enterprise and Innovation, Deputy Richard Bruton.
I welcome the Minister and thank him for coming to the House after a busy week. His contribution to the budget has been immense. I attended a briefing breakfast this morning in Dundalk with Enda Jordan of Ernst & Young, hosted by the chamber of commerce, where the reaction was that it was a pro-business budget. There is an onus on me to convey those sentiments to the Minister. Well done to him.
In light of the new situation in Libya and the opportunities it provides for Irish companies, particularly given the position in the building industry, and the chance for builders and architectural and engineering firms to take part in the reconstruction, what structures are the Government and State agencies putting in place to take advantage of the situation? A case study of a reputable architectural company in the public and private sector from Dundalk shows it has offices in Tripoli. It is in contact with various members of the Libyan National Transitional Council and the newly appointed Government Ministers, most notably with its legal representative, Dr. Giumma Atigha. I refer to him because I know his first cousin. They are likely to be involved in project management and design for a major amount of rebuilding in Libya which will lead to significant recruitment of construction professionals based in Ireland and working on the ground in Libya. We need to benefit from the rebuilding and growth of Libya as well as external investment. We need a co-ordinated and proactive approach between Irish Government organisations and Libyan Government bodies. I use that as a case study but I know there are other companies. I am not convinced these companies have been successful in their attempts to get that proactive engagement from us and State agencies. Given the current situation there is a massive opportunity for us.
An Irish construction company based in England, which is building six hospitals for Beacon in Iraq, received a letter asking it to express an interest in and arrive at a proposal for the building of 250 schools in Iraq. The letter was brought to the attention of a Government agency and the company was told — so far as I can say given that I was not present — that we were doing enough business as it was in the Middle East. We have to look at this as a release valve for our under-employed construction sector.
I thank the Senator for his words of encouragement and also for raising this matter. The appointment of two current Irish residents to the new Libyan Government is welcome and an indication of long-standing links between our two countries, especially in the medical and education sectors. Dr Fatima Hamroush, who was a consultant ophthalmologist in Drogheda, was appointed as Libya's new Minister for Health, and Dr. Fathi al-Akkari, a lecturer in electronic engineering at Tallaght Institute of Technology, has been appointed deputy Minister for higher education. We wish them both every success in their challenging new roles and I hope they will retain their links with Ireland.
Following the lifting of western sanctions on the country in the recent past, Libya is potentially a very exciting market for several reasons. Libya's isolation exacerbated its significant infrastructural deficit. Its oil wealth provides significant resources to fund reconstruction and development. It has an immediate need for external expertise to deliver on its ambitions. Ireland is well placed as a provider of services. Enterprise Ireland visited the country in 2008 and organised a market study visit in 2009. This was followed by two trade missions — one led by the Minister of State with responsibility for trade and commerce in May 2010 and another in the education sphere in October 2010.
Given the advent of the uprising and the unstable security position in the country for much of this year, activity by Irish companies has been badly affected. While the position has improved it would still be premature to initiate a strong promotional activity in the short term. We continue to monitor the situation there, and will be guided by the advice of the Department of Foreign Affairs and Trade on the issue. When a normal business environment resumes, educational and construction services will remain high on the list of focus sectors, but there is also potential in areas such as health care, telecommunications and e-government.
In 2010, before the uprising, the EU was an important trading partner for Libya, accounting for 70% of its total trade which amounted to approximately €35.5 billion. Negotiations on an agreement between the EU and Libya started in November 2008. The EU is ready to restart those negotiations as soon as the Libyan authorities request it. I understand there has been no further progress in that regard. Concluding an EU free trade agreement with Libya would increase the coherence of the EU's trade policy in the region, closing a gap in the Euromed free trade zone. This is because Libya is the only Mediterranean country — with the exception of Syria — which has not concluded a free trade agreement with the EU. Ireland naturally supports the free trade agreement negotiations.
The EU has begun talks on similar agreements with Libya's neighbours, Egypt, Jordan, Tunisia and Morocco. In time we hope for the opportunity to develop a similar free trade agreement with Libya. Libya is not a member of the World Trade Organisation but negotiations for its accession started in 2004.
The negotiation of the framework agreement on trade was due to pave the way for Libyan WTO accession, which will enhance trade opportunities. I hope these talks can resume shortly.
We are fully conscious of the opportunities opening up in the Libyan market. In our efforts to pursue export-led growth, every opportunity is sought to diversify our markets, especially involving a potentially high-growth market such as Libya, with its oil wealth and desire to modernise its economy. Our trading record with that country and our good standing with key officials who have been educated here in previous decades will be very good levers in that quest. We all look forward to a stable society emerging from the recent turmoil. Enterprise Ireland and Irish companies will work towards participating in its development.
I understand the Minister, whose comments confirm what I have been hearing, namely, Enterprise Ireland is not yet ready to engage with the National Transitional Council on these matters. I urge the Minister to use whatever influence he has in this regard, not as a persuader but in order to keep raising the point with Enterprise Ireland that if we do not move now, we will lose out.
The Minister is correct that there are other opportunities. Our pharmaceutical companies are losing market share worldwide and there is a massive opportunity for such Irish-based, foreign direct investment companies to increase market share. We should be seeking a trade agreement with Libya as well as seeking to build health centres. I understand the frustration of the companies which are based there, some of which have been there for two years, although their work was interrupted. They have not made a bob yet, despite having offices there and people involved. I urge the Minister to get that message across to Enterprise Ireland. I was at school with the head of Enterprise Ireland and know he is a gentleman. I do not believe this opportunity should be missed.
The Seanad adjourned at 8.15 p.m. until 10.30 a.m. on Thursday, 8 December 2011.