Seanad Éireann díospóireacht -
Tuesday, 2 Jul 2013

Vol. 224 No. 7

Adjournment Matters

Money Laundering

Senator Martin Conway

I raise the issue of prize bonds and money laundering regulations on foot of correspondence I have received from the Irish Postmasters' Union. I understand that copies of the same correspondence were sent to all Members of the Oireachtas. Like many thousands of Irish citizens, I own prize bonds. I have never won any money on my prize bonds but I keep them none the less. It is an interesting and worthwhile scheme that has been running since the 1970s or 1980s.

The issue that now arises for prize bonds is that people purchasing bonds to the value of more than €25 have to go through a myriad of new regulations on money laundering. I acknowledge that money laundering is a serious problem in this country, but it also affects many other areas. One such area is the betting industry, but I do not see a great effort being made to deal with the vast sums of money laundered on a yearly basis in that industry. I look forward to finding out whether the new betting legislation will include measures dealing with money laundering.

It is ridiculous that if somebody wants to purchase €30 worth of prize bonds as a gift, he or she will have to deal with the money laundering regulations. The Irish Postmasters Union recognises the problem that has arisen and it has proposed that individuals be allowed to purchase up to €100 worth of bonds without having to go through the rigours of the new regulations. It makes a fair argument in this regard because the decision to set the bar at €25 was clearly wrong. I look forward to hearing a positive response from the Minister of State at the Department of Finance, Deputy Brian Hayes.

Minister of State at the Department of Finance (Deputy Brian Hayes)

I thank Senator Conway for raising this important issue and for his diligence in following up on the representations that have been made to him. Prize bonds are part of a range of State savings products which include savings bonds, savings certificates, instalment savings, national solidarity bonds and deposit accounts such as the ordinary demand deposit account and the 30 day notice deposit account plus.

State savings products form part of the sovereign debt of Ireland, which is managed by the National Treasury Management Agency. An Post and the Prize Bond Company are agents of the National Treasury Management Agency in respect of the State savings product range. Neither An Post nor the Prize Bond Company retains or manages any State savings money. All State savings money is placed directly with the Government under the management of the NTMA and forms part of the national debt. The direct unconditional obligation of the Government to repay the national debt applies equally to State savings, which include principal, interest and bonus payments if due, and, in respect of prize bonds, cash prizes.

The value of one prize bond is €6.25 and the minimum purchase is four prize bonds costing €25. Each prize bond that has not been encashed is entered into a weekly draw for a range of cash prizes. The top prize is currently €1 million in the last weekly draw of every second month - that is, February, April, June, August, October and December - and €20,000 in all other weekly draws. Approximately 8,000 other cash prizes are awarded each week.

The European Council and European Parliament have adopted legislation to protect the financial system and certain professions and activities from being misused for money laundering and the financing of terrorism. The anti-money-laundering obligations applicable in Ireland derive from the third EU money laundering directive, the provisions of which were transposed into Irish Law by the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010. Part 4 of the Act sets out the obligations in regard to customer identification for the purposes of the legislation. These include the obligation to conduct customer due diligence prior to the establishment of a business relationship. Customer due diligence refers to the identification of customers and the beneficial owners of financial products associated with the customer. The extent to which a particular person or product may be exempted from the customer due diligence requirements is determined by reference to the Act, having regard to the underlying directives.

An Post and the Prize Bond Company are deemed to be a designated person under the Act as they fall within the definition of a financial institution. In light of this, An Post and the Prize Bond Company are required to comply with the relevant provisions of the Act in relation to the sale of prize bonds to customers. This means, in practical terms, that customer due diligence must be conducted on all purchases of prize bonds, irrespective of value. The Act designates the Central Bank as the competent authority for financial services providers, with responsibility for monitoring them and taking measures that are necessary for the purposes of securing their compliance with the Act. The Central Bank of Ireland has no discretion to exempt certain firms from the requirement to comply with the Act. In light of the above, the Minister for Finance is exploring with the National Treasury Management Agency and his colleague, the Minister for Justice and Equality, whether exemptions available under the directive may be applied to small-value purchases of prize bonds facilitated on behalf of the State by An Post and the Prize Bond Company. The two Ministers are investigating whether a more flexible arrangement can apply.

Senator Martin Conway

Post office workers in County Clare will be delighted to learn that the Ministers are considering ways of allowing more flexibility. We are probably the most compliant country in Europe with all sorts of European regulations and directives. We need to clap ourselves on the back for this, but sometimes it can be a bit mad.

Human Rights Issues

Senator Kathryn Reilly

Last week I attended the Parliamentary Assembly of the Council of Europe, at which the issue of Hungary and the opening of a monitoring procedure was discussed in depth both in committee and in the plenary session. In 2012 the Hungarian Government passed a law defining homelessness as an administrative offence, with the result that people who get caught sleeping on the street twice in six months can be punished with incarceration or monetary penalties that no homeless person could afford. After the country's constitutional court annulled the law for violating the human dignity of the homeless, their legal certainty and their right to property, the constitution was changed in March to reinforce the political decision to criminalise homeless people.

I realise that Budapest's capacity has been stretched to its limits, but deep poverty needs to be cured rather than banned. The United Nations has reported that an estimated 8,000 homeless people live in Budapest and between 30,000 and 35,000 are homeless in the country as a whole. The unemployment rate in Hungary is 10.9%. Homeless rights advocates have argued that shelters are overcrowded and are calling on the Hungarian Government to focus on providing affordable housing rather than temporary accommodation. According to an independent research team called the Third of February Working Group, there were only 10,205 official beds for the homeless in 2012. The UN special rapporteur on extreme poverty, human rights and the right to adequate housing has called on Hungary to revise its laws criminalising homelessness and stated that homeless persons should not be deprived of their basic rights to liberty, privacy, personal security and the protection of their family solely because they are poor and in need of shelter.

Hungary is obliged under the European Social Charter, the Council of Europe treaty and the International Covenant on Economic, Social and Cultural Rights to vindicate the right to adequate housing. The EU recognises the right to social housing and housing assistance in order to combat social exclusion and poverty, and in June 2010 it adopted the Europe 2020 strategy to promote social inclusion.

Homelessness is one of the most extreme forms of poverty and social deprivation. This law is an unacceptable violation of human dignity. The right to housing as set out in Article 31 of the revised European Social Charter should be guaranteed and Hungary should fulfil its obligations under Article 12.

A policy of repression and criminalisation is no answer to social problems. The Hungarian Government should revoke the law that makes it a crime to be homeless. It raises serious human rights concerns and is very difficult to reconcile with Hungary's human rights obligations. It defies logic to punish the poorest people in society just because they live on the streets. Fines and imprisonment will do nothing to address the fundamental problems which lead to homelessness.

I ask the Minister for Foreign Affairs and Trade to set out the position Ireland is taking in respect of these laws, the deliberations he has undertaken with his Hungarian counterpart and whether the issue was raised during the Presidency, particularly in the context of human rights.

Minister of State at the Department of Finance (Deputy Brian Hayes)

I thank the Senator for raising the matter. Unfortunately, the Tánaiste is not in a position to attend the House and has asked me to take the matter.

The foreign Minister in Hungary, János Martonyi , wrote to all EU foreign Ministers last March to inform them of changes to the Hungarian constitution which were subsequently approved by the Hungarian Parliament. The changes have given rise to a number of concerns within the EU, the wider international community and civil society on the independence of the judiciary, particularly the constitutional court of Hungary. There are also concerns about the possible curtailment of civil liberties. In a joint statement dated 11 March 2013, the President of the European Commission and the Secretary General of the Council of Europe expressed regret that their experts had not been afforded the opportunity to discuss the amendments with Hungarian officials before final approval. They also raised concerns about whether the amendments to the Hungarian constitution respected the principle of the rule of law, EU law and Council of Europe standards. The Tánaiste expressed in the Dáil Ireland's full support for the joint statement and encouraged the Hungarian Government to engage fully to ensure it meets its EU and international obligations.

The European Commission is conducting a detailed assessment of the amendment. In April, President Barroso wrote to Hungary's Prime Minister to indicate that, on a first analysis, the Commission had serious concerns about the compatibility of the constitutional changes with EU legislation and the principle of the rule of law. Also in April, during a debate on the constitutional situation in Hungary in the European Parliament, the Minister of State with responsibility for European affairs, Deputy Creighton, acting in her Presidency role, recalled the EU's basic values, which are set out in the treaty and also contained in the European Convention on Human Rights, to which all EU member states are party. She indicated that the promotion of the rule of law and the protection of fundamental rights are important priorities and noted that equality, tolerance, respect for human rights and the rule of law are the values on which the European Union is founded. Members of the European Parliament's LIBE committee are engaged in dialogue with Hungary and there is another important debate today in the EU Parliament in which the Hungarian Prime Minister is scheduled to participate.

The Council of Europe remains actively engaged on the matter, primarily through its Secretary General and advisory body on constitutional matters, the Venice Commission. At the joint request of the Secretary General and Hungarian authorities, the Venice Commission recently adopted a detailed opinion on the implications of the fourth amendment to the Hungarian fundamental law in which it set out several concerns, including concerns on the homelessness issue as raised by Senator Reilly. While indicating that there remains some difference of views in certain areas, Hungary has indicated that it will carefully examine the opinion and remains open for dialogue and co-operation. We support fully the efforts being made by the EU, the Venice Commission and the European Parliament, among others, to engage with the Hungarian authorities on this matter. We welcome the engagement that has been undertaken by the Hungarian authorities in recent months. This has led to some proposed changes to be voted on by the Hungarian Parliament in autumn.

While all concerns have yet to be fully allayed, including on the homelessness issue, the process of consultation is continuing. The Hungarian authorities have indicated that they are fully committed to dialogue with the relevant European and international institutions on these concerns. We will continue to monitor the situation closely and trust that the dialogue under way will lead to further changes which will address these concerns.

Teacher Recruitment

Senator Mary Moran

I welcome the Minister of State, Deputy McGinley, to the House and thank him for taking the debate on behalf of the Minister for Education and Skills, Deputy Quinn. I have asked for this matter to be taken on the Adjournment to ask the Minister about the ongoing issue of retired teachers being re-employed in schools, often as substitute teachers or on a part-time basis. I have also asked him to address the issue of retired teachers being employed by the State Examinations Commission to act as examiners in practical subjects and to supervise the State exams.

Figures released in 2012 revealed that 1,311 retired teachers were employed as supervisors in the State exams while only 726 non-permanent teachers were hired. Since coming into Government, I understand that the Minister has committed with the Government to ensuring that unemployed and newly qualified teachers should be employed in schools where possible. I am extremely disappointed that the figures released this year, however, reveal again that more than 1,000 retired teachers were employed to supervise the State examinations. Of the 4,861 superintendents hired this year, almost 25%, or 1,049, were retired teachers, while just 250 unemployed teachers were hired. These figures are worrying given that last year 3,365 people graduated as teachers. I have inquired about these statistics before and been assured that newly qualified and unemployed teachers were prioritised this year. However, I meet constantly with newly qualified teachers who have been unsuccessful in securing positions as superintendents. I requested information as late as May 2013 on the number of retired teachers being employed as superintendents and am disappointed that I have yet to receive a formal reply. I would be grateful if the Minister of State would communicate my concerns to the Minister, Deputy Quinn, to ensure that I get a response. Meanwhile, I have read about the figures in the media and am disappointed not to have been supplied with them directly.

The TextaSub service which links schools to substitute teachers and can aid unemployed teachers in finding substitute positions is welcome, but it does not solve the problem. For example, in my home county of Louth, just nine teachers are registered for the service. As a former teacher and someone who is in communication with teachers in my home town, I am aware of the fact that there are many more than nine teachers in Louth who are seeking teaching positions. Often, an unemployed teacher must move to a more urban area to seek any kind of employment. They may not be living in the county and therefore cannot register for the service. Every day, I am contacted by newly qualified and unemployed teachers who are desperate to find teaching employment. They are graduates with excellent qualifications and skills, often past pupils who would make fantastic teachers and inject into their schools new ideas and teaching methods. However, they are disillusioned to discover that even substitute cover is often offered to retired teachers. I do not blame the Minister for this. He has made progressive remarks and tried to counteract the trend. The problem lies with certain schools which have a habit of employing retired teachers.

I had a worrying conversation with a former teacher recently. He informed me quite proudly that he had been employed constantly to provide maternity cover and substitute teaching since his retirement. I was informed recently of a teacher who was retiring this year. The teacher in fact retired last year and was obviously taken back by the school on a part-time basis. I find this extremely frustrating when we have newly qualified young graduates who do not want to leave the country. They want to stay and give something back through their education and skills.

Further examples of retired principals and deputy principals being employed to provide substitute cover or being employed as exam supervisors have been relayed to me by disillusioned graduates and the parents of graduates who have invested hard-earned money, energy and commitment to see children graduate as qualified teachers. I ask the Minister of State to consider taking further measures to ensure newly qualified teachers and unemployed teachers are prioritised. Schools have major autonomy in employing part-time and substitute teachers, as they do in the area of voluntary contributions and uniforms, which is another debate. Perhaps the Minister of State can relay to the Minister the suggestion that we create a system whereby the Department decides who will provide substitute cover, illness cover and maternity cover in order to ensure a more fair and equitable system will be provided for all.

Minister of State at the Department of Arts, Heritage and the Gaeltacht (Deputy Dinny McGinley)

I assure the Senator we have one thing in common in that we are both former teachers. I have an understanding of the point the Senator is making. I am replying on behalf of the Minister for Education and Skills, Deputy Ruairí Quinn, who is in Cabinet at the moment. The State Examinations Commission was established as an independent agency in 2003 to deal with all operational issues relating to State examinations. The Minister for Education and Skills, Deputy Ruairí Quinn, has no role in the selection criteria for the appointment of superintendents of State examinations. The State Examinations Commission has provided the following information. Some 5,000 superintendents were appointed by the commission to almost 750 second level schools for the 2013 examinations. This does not include almost 9,000 superintendents appointed locally by schools, mindful of the specific needs of each individual student, to supervise students with special educational needs.

In the main, the State Examinations Commission appoints experienced teachers as examination superintendents. It is considered that teachers' classroom management skills and experience of working with young people are equally required for the effective conduct of the examination superintending duties. In 2013 a further criterion for appointment was introduced by the State Examinations Commission in order to comply with the terms of the National Vetting Bureau (Children and Vulnerable Persons) Act 2012, whereby all applicants had to be on the register of teachers maintained by the Teaching Council.

There is a long-standing policy of appointing unemployed and substitute teachers before drawing on other applicants. The State Examinations Commission highlighted this category of applicant when running the 2013 advertisement and recruitment campaign. The number of unemployed teachers appointed rose to 250 from 190 in 2012 and the number of substitute teachers appointed rose to 716 from 429 in 2012. Retired teachers may apply and be appointed in accordance with the terms of the Employment Equality Act, which prohibits discrimination in employment on a number of grounds, including age. Following the removal of any upper age limit in 2005 as a consequence of the employment equality legislation, the number of retired teachers engaged as superintendents increased from 406 in 2006 to 1,458 in 2012, dropping to 1,049 in 2013.

The board of management of a school, in accordance with the provisions of the Education Acts, manages a school on behalf of the patron. The board of management of a school, or the education training board, ETB, in the case of the ETB schools, is responsible for recruitment, selection, appointment, discipline and dismissal of staff. Teachers and other staff are employed by the board of management or ETB. The Minister is not a party to that contract.

I agree that priority should be given to unemployed teachers over those in receipt of pensions and the Department has taken the following steps in this regard. Information notes were issued to schools in October 2009 and October 2010, which requested that schools prioritise unemployed teachers over those in receipt of a pension when appointing temporary teachers. Circular 31/2011 was issued to schools in May 2011 to ensure, as far as practicable, that people appointed to teach are registered teachers with qualifications appropriate to the sector and suitable to the post for which they are employed and that unemployed teachers are offered employment in preference to those who have retired. It required each school to keep a list of appropriately qualified registered teachers who are available for substitute work at short notice. This list must not include the names of registered teachers in receipt of pension in respect of service given under a public service pension scheme. It also obliged the principal to keep a record and report to the board of management any instances when retired registered teachers and unregistered persons are employed. The Department has also engaged with a number of schools who show up on the Department's payroll as employing retired teachers.

During the period of the written examinations each June, much of the integrity of the examination process depends on the manner in which superintendents perform their assigned tasks. It is a critical role and one that has been performed with excellence, skill and dedication by thousands of superintendents over the years. Superintendents have a range of important duties over a three week period in June. These include the safe custody of the examination papers, the safe custody of completed examination scripts and the safe and proper conduct of each day's examinations in line with the rules and procedures laid down by the State Examinations Commission.

The question of appointments of superintendents of State examinations is obviously an operational one. The State Examinations Commission is the body charged with the running of the State examinations and the focus of the greatest expertise in that regard. It makes perfect sense that this operational matter should be fully within the remit of the State Examinations Commission.

The Minister will refer the detailed issues raised in this debate to the commission for its information and consideration. Since September 2010, the recruitment of teachers by schools strongly favours unemployed teachers over those in receipt of pension. Under Circular 0040/2011 and subsequently circular 0008/2013, teachers who are retired and who return to teaching were remunerated at the first point of the revised salary scales applicable to new entrants at the date of re-entry. This represents a significant financial disincentive for teachers who retired at the top of their salary scale, often with a post of responsibility allowance, to return to teaching. The forthcoming commencement of section 30 of the Teaching Council Act 2011 on 1 November 2013 will provide a requirement for those in Oireachtas funded teaching posts to be registered with the Teaching Council in order to be paid from Oireachtas funds. These measures are positive for unemployed teachers. The comments of Senator Moran will be brought to the attention of the Minister.

Senator Mary Moran

The Minister of State has pointed out some of the measures taken by the Minister for Education and Skills, Deputy Quinn, but I am worried the problem still exists and that the measures have not counteracted the problem. It is not widespread, it is confined to some schools. I ask that my request for a central system or more definitive way of giving priority to newly qualified and unemployed teachers is considered.

Youth Services Provision

Senator Averil Power

I welcome the Minister of State to the House. I wish to discuss the need for urgent accommodation for the Priorswood outreach service, Sphere 17. This service provides a wide range of services for young people from Darndale, Bonnybrook and Priorswood areas of Dublin 17, which is one of the most socially disadvantaged parts of the whole country. Last year, the service worked with over 1,250 people between the ages of ten and 21. It is a huge service and, through its programmes, Sphere 17 provides positive and enjoyable ways for young people to spend their time, provides a drop in service where teenagers can play pool and hang out with their friends in an alcohol-free environment throughout the year, and provides young people with opportunities to engage in arts programmes and other initiatives they would otherwise not have.

They do hugely important health promotion work, running alcohol and drug awareness and teen pregnancy programmes. They also undertake mental health initiatives, which are important, particularly for at risk young people, and a wide range of other important initiatives. Through all this, they help to improve young people's self-esteem and confidence in themselves and encourage them to avail of opportunities in school and elsewhere, to believe in themselves and to build a better future. The team covers three areas - Darndale, Priorswood and Bonnybrook.

The team in Priorswood provides an incredible service but the staff are working in incredibly bad physical conditions. They work out of a portakabin, which was only ever intended to be short-term accommodation. It is in a dreadful state, having been run down over the years. It is currently closed because it was broken into yet again. It is a particularly vulnerable building. It is easy to break into and it cannot be used at the moment. The staff are managing to cope with the summer programmes because, apart from today's horrendous weather, they have been lucky with the weather. They have been able to put on initiatives outdoors but that will not be a possibility heading into the winter. They badly need a new purpose built, secure building to replace the portakabin to provide this valuable service.

They have raised €55,000 with great effort and they are seeking €100,000 under the youth cafe capital programme. I wrote to the Minister for Children and Youth Affairs about this a number of months ago. I understand the application is being considered but the reason I tabled this matter is to draw her attention to the application again. I appreciate many groups have applied for this funding but there is a particularly urgent need in this area because the present accommodation is in such bad condition and it cannot even be used now because of the recent break-in. This is an urgent issue. This is an excellent organisation with a fantastic track record. The staff will make sure every euro they are given in funding will be well spent and it will enable them to continue to provide a great quality service for young people in the Priorswood area.

Deputy Dinny McGinley

I thank the Senator for raising this matter, which I am taking on behalf of the Minister for Children and Youth Affairs who is attending a Government meeting.

The Minister is conscious of the great benefits that can accrue to our young people from involvement in youth work and the benefits for society as a whole. Youth projects and organisations present valuable opportunities for the social and personal development of young people. Qualities and skills such as leadership, co-operation, decision-making, motivation, and self-responsibility can be acquired in a learning by doing manner. The aim of the youth service is to assist all young people to become active participants in a democratic society. In essence, the primary objective of the youth service is to help realise the potential of each young person and to facilitate their full participation in community life.

The youth affairs unit of the Department of Children and Youth Affairs provides a range of funding schemes, programmes and supports to the youth sector. Funding of some €53.498 million is available in 2013 to support the provision of youth services and programmes to young people throughout the country including those from disadvantaged communities. Targeted supports for disadvantaged, marginalised and at-risk young people are provided through the youth service grant scheme, the special projects for youth, SPY, scheme, the young peoples facilities and services fund, YPFSF, rounds 1 and 2 and local drugs task force, LDFT projects, youth information centres as well as other initiatives such as the local youth club grant scheme. The focus of this financial support in 2013, as in previous years, is on the consolidation of existing youth work provision and on the safeguarding of front-line programmes, particularly in disadvantaged communities.

The Minister is very much aware of the valuable services provided by Sphere 17 regional youth service to young people aged between ten and 21 years in areas such as Bonnybrook, Darndale and Priorswood in Dublin 17. Sphere 17 provides young people with a wide range of programmes and activities, seven days a week which reflect their needs, interests, capacity and age profile. These programmes and activities include personal and social development with a particular focus on recreation, education and health. Projects engage with young people in an open, creative and health focused way using a variety of youth friendly approaches. A team of trained and dedicated staff works with and for young people in the Dublin 17 area supporting them to achieve their potential and contribute positively to their communities. The Department provides funding to Sphere 17 regional youth service under a number of funding schemes. These are the SPY scheme, YPFSF rounds 1 and 2 and the LDTF. Funding of €788,839 has been allocated to Sphere 17 in 2013.

The overall budget of €53.498 million for the Department of Children and Youth Affairs in 2013 includes capital funding of €1.75 million. Of this funding up to €1 million is available for fit-out, refurbishment works or building enhancement projects for the start-up of new youth cafes. A total of 95 applications was received under the youth cafe scheme this year, which is being administered by Pobal on behalf of the Department of Children and Youth Affairs, and the Department understands that an application for capital funding under this scheme was received from Sphere 17. The initial appraisal process of the applications received is in the final stages. It is expected that applications that are successful will go through to the next round of the process and will be notified in the coming weeks. The final decisions about youth cafes to be funded under this scheme will be made at the end of October 2013. Details of the application process for the remaining youth capital funding which amounts to €500,000 in 2013 will be available in due course.

Senator Averil Power

I thank the Minister of State for his reply. I also thank him for his positive comments about Sphere 17. It is an excellent service and I am glad the Department appreciates that. Will he bring the recent break-in to the Minister's attention and the fact that the building in Priorswood cannot be used in order that she will be aware of the urgency of this application? Will he extend an invitation to her to visit the current site and meet the young people who avail of the services? He is also welcome. That would be great and they would love to have the Minister or the Minister of State visit them. I would appreciate it if he conveyed my remarks to the Minister.

Deputy Dinny McGinley

I appreciate the Senator's interest in this matter. I am sure the Minister would be more than willing to go and have a look at what is being done. I am impressed that €55,000 has been raised locally. All these matters will be brought to the Minister's attention. I thank the Senator for her contribution.

The Seanad adjourned at 8.50 p.m. until 10.30 a.m. on Wednesday, 3 July 2013.