I welcome the Minister of State at the Department of Health, Deputy Alex White.
Adjournment Matters
Medical Card Eligibility
The Minister of State is very welcome. Many of us who do our day-to-day work in constituency offices receive queries concerning medical cards. One area of continuing confusion is the notional rate of interest that is applied to applicants' savings. I am referring to the full medical card. When I tried to discover how the rate is applied, I found the situation was confused. The Department and the HSE did not seem to know themselves. I was given a number of different rates and was also told there was no rate. I have tabled this Adjournment matter in order to clarify the matter. I hope the Minister of State can explain how the nominal interest rate is calculated by the HSE on savings as part of the means test for medical card applicants. As the net rate for couples is very low, I would like to hear what the Minister of State has to say about the matter.
I thank the Senator for raising this issue. For the record, we are agreed that the text of this Adjournment debate matter should read "notional" rate as opposed to "nominal" rate.
As the Senator will be aware, medical cards are provided for persons who, under the provisions of the Health Act 1970, as amended, are in the opinion of the Health Service Executive unable without undue hardship, having regard to their overall financial situation, to arrange GP services for themselves and their dependants. The assessment for a medical card is, therefore, determined primarily by reference to the means, including the income and expenditure, of the applicant and his or her partner and dependants.
The notional interest rate to which the Senator refers is only relevant to the supplementary assessment process for medical cards for persons aged 70 years and over, where means testing is on a gross income basis. The gross income qualifying limits under this scheme are €500 per week for a single person and €900 per week for a couple. For the purposes of assessment for this medical card, savings or similar investments of €36,000 for a single person or €72,000 for a couple are disregarded. For amounts in excess of these limits a notional rate of interest is applied to the savings to determine the amount to be taken into account as income for assessment purposes.
The notional rate is set by the HSE on a quarterly basis by taking an average of the current deposit interest rates of a number of the major Irish banks and building societies on 1 January, 1 April, 1 July and 1 October. The notional rate is 2.3 % with effect from 1 January 2014, having been reduced from a previous 3%. It is, therefore, the average of the current deposit interest rates, which is determined by taking four readings throughout the year and then determining the average.
Alternatively, a medical card applicant may opt to have the actual income in interest received from the financial institution applied for the purpose of means assessment. In these circumstances, the applicant must provide a certificate of interest paid on savings in the last full calendar year.
In respect of fixed-term or long-term savings products in respect of which interest is applied following a fixed period - and if the applicant so wishes - the HSE can take account of the interest earned in the year of maturity of the investment or apply the notional rate to determine the income. Interest on savings or investments that are the proceeds of certain State compensation or redress schemes are exempt from assessment of means for medical card-GP visit card eligibility. Therefore, only the interest or income earned on savings and similar investments above a certain value will be counted as income and not the total values of the savings or investments themselves.
In the light of what the Minister of State is saying, I presume the notional figure will change again on 1 January 2015. While people will receive certificates of interest, deposit interest retention tax, DIRT, which is charged at a rate of 41%, is going to have to be taken into consideration in the context of the calculation of interest. For a single person, interest is earned at a rate of 2.3% on all moneys additional to the first €36,000, while the figure which applies in this regard for a couple is €72,000. The rate of 2.3% should be reduced by the amount of DIRT paid in order that actual amount of money any couple or individual have can be calculated. The calculation relating to the notional rate of 2.3% is fair and reasonable. However, I ask the Minister to State to consider reducing it by the amount of DIRT paid, which is charged at a rate of 41%. The final amount involved is, after all, that which remains when the latter has been paid, not that which obtains when the 2.3% rate has been applied. I ask the Minister of State to bring my view on this matter to the attention of the HSE and the relevant policymakers in order that they might be considered. While people are nominally benefiting from a rate of 2.3%, their savings, etc., are being automatically reduced by 41%.
I understand the point the Deputy is making. Deposit interest retention tax or DIRT applies right across the board, not just to the individuals affected in this instance. However, I will certainly take into account the Senator's observations. If he wishes to write to me separately, I will ensure he receives a response. I will certainly communicate his views through the system.
Harbours and Piers Development
Cuirim fáilte roimh an Aire Stáit. I am very grateful to him for coming before the House to take this matter which relates to Ros a'Mhíl harbour in Connemara.
In 1999 HGL O'Connor & Co. carried out a feasibility study for deep water jetty at Ros a' Mhíl for Roinn na Gaeltachta. In 2000 the then Department of the Marine and Natural Resources commissioned O’Hare & Associates to assess the viability of the development of a deep water pier in Ros a' Mhíl. This report justified the development on safety and economic grounds and recommended that there be two separate developments, the first of which related to the provision of a dedicated ferry berth and the second to the construction of a deep water pier, 200 m in length and with minimum depth of 8 m. Mott McDonald EPO Limited produced design and costings for the development at that time and estimated that the overall cost would be £21 million. In November 2000 the then Minister for the Marine and Natural Resources announced the provision of £14.8 investment for Ros a’ Mhíl Harbour under the national development plan, NDP. In December that year some £7 million was allocated to Ros a’ Mhíl from the budget for 2001. To date, some €6 million has been spent on the project. Planning permission has been obtained for the further development of the deep water berth and all necessary statutory permits are in place. The only requirements necessary for this project to proceed are funding and support from the Government.
The development to which I refer is needed because Ros a’ Mhíl is a major fishery harbour centre and it is situated closest to the most productive fishing grounds in western Europe. Landings of fish have declined in recent years as the new generation of vessels produced under the whitefish fleet renewal scheme require greater depth and cannot access the pier on a 24 hour basis. Fishing boats over 100 ft. in length have been prohibited from entering the harbour due to a lack of deep water berthage. Unless deep water facilities are provided at Ros a' Mhíl this declining trend in fish landings will continue.
From a tourism perspective, Ros a' Mhíl is the main port of access to the Aran Islands, with an excess of 350,000 passenger movements per annum. It is the fourth largest port in the country in the context of passenger movements. Given that a ferry company is operating out of the harbour, this makes it a very important tourism hub. We are delighted by the fact that pontoons have been put in place in the harbour to facilitate the ferry services.
In the context of the commercial aspect, Coiste Pobail Ros a' Mhíl has surveyed 50 national and international companies operating in the area. All the companies which responded stated that the development of a deep-water harbour at Ros a' Mhíl would allow them to expand their operations and create additional employment. The development of a deep-water harbour would give rise to a domino effect, encourage the growth of entrepreneurial ventures in the region and create a new gateway into the west of Ireland. Marine transport is the most cost-efficient method of bulk transport. A deep-water pier would facilitate the development of industries in the Border, midlands and west, BMW, area which produce bulk cargos. This method of transport dramatically reduces the number of heavy goods vehicles on the roads. A deep-water pier would also be ideal in the context of servicing other industries in the region.
From a services perspective, the development of Ros a' Mhíl would create employment in related service industries such as transport, engineering, hotels, restaurants, etc. In addition, a deep water facility would provide a safe and accessible harbour for State services operating off the west coast.
Ros a' Mhíl is a safe, sheltered, natural harbour located 24 miles west of Galway city. Most of the land in the harbour area is State owned and designated for industrial development. The road infrastructure could be improved if the outer ring road is upgraded. The project relating to Ros a' Mhíl has been actively supported by a number of Departments. Where does the Minister for Agriculture, Food and the Marine stand in the context of the development of Ros a' Mhíl as a port, particularly in the context of the putting in place of a deep water berth? If the harbour is developed, this will ensure the best possible use of facilities in the west and give rise to the creation of much badly needed employment. The western region has been badly affected by the emigration that has resulted from the economic downturn. I look forward to the Minister of State's reply, which he will deliver on behalf of the Minister for Agriculture, Food and the Marine.
I am taking this matter on behalf of the Minister for Agriculture, Food and the Marine, Deputy Simon Coveney, who is unable to be present.
The harbour at Ros a' Mhíl is one of the six designated fishery harbour centres which are owned, managed and maintained by the Department. Funding is made available on an annual basis by the Department to the fishery harbour centres, including Ros a' Mhíl, via the fishery harbour and coastal infrastructure capital development programme. Ros a' Mhíl Harbour consists of the well sheltered Cashla Bay, within which lies the inner harbour area. The bay is strategically located at the northern approaches to Galway Bay. It was designated as a fishery harbour centre in 1981. A phased programme for the infrastructural development of Ros a' Mhíl fishery harbour centre has been progressed in recent years. Over €22 million was invested in capital developments at Ros a' Mhíl fishery harbour centre between 2002 and 2013. This level of investment is a significant commitment to the harbour and has facilitated the manufacture and installation of modern ferry pontoons, dredging works and the provision of a small craft harbour. A state-of-the-art embarkation point for residents and visitors to the Aran Islands is now in place and this enhances the services provided for and the safety of all Ros a' Mhíl fishery harbour centre uses. This is a major contribution to local tourism, with an estimated 500,000 passengers having used the ferry since 2011.
As part of the 2014 capital programme, the Minister has approved total funding of €329,000 for harbour maintenance and development at Ros a' Mhíl. Specifically, he approved €133,000 for the design and planning of a new slipway in Ros a' Mhíl Harbour. This will allow for greater use of the harbour by small craft, the existing fishing fleet and aquaculture operators.
Subject to available finances, the development will be completed in stages. The final cost is expected to be in the region of €2.5 million. Additionally, the Minister has allocated €31,000 as part of the 2014 capital programme to fund the design and planning of phase 2 of the small craft harbour which will further benefit and service the ever-increasing marine tourism and leisure activities on the west coast.
Proposals for the deep water quay at Ros a' Mhíl have been mooted for some time and planning permission was sought and obtained. Owing to budgetary constraints, the project has not yet progressed. Most recently, an economic survey on Ros a' Mhíl has been undertaken by Bord Iascaigh Mhara with a view to informing further strategic development of the seafood sector in the area. It is expected that this will be published in the near future. Any future decision regarding the provision of a deep water quay at Ros a' Mhíl fishery harbour centre will be informed by sound economic considerations, competing priorities and the availability of Exchequer funding.
On a broader note, the Department of Agriculture, Food and the Marine also funds local authority projects for the development of piers, harbours and slipways in local authority ownership in addition to separate funding for selected marine and other leisure projects. In 2013, €450,000 was spent on four Galway County Council owned harbours. The Minister has also allocated €3 million in 2014 for such programmes nationally. His expectation is to seek applications from Galway County Council for appropriate projects in the coming weeks. On 20 March this year he announced €8.5 million in funding for a programme to repair publicly owned piers, harbours and slipways damaged by the winter storms. This is a once-off measure as part of the Government's overall response to the damage inflicted on national piers and harbours infrastructure this winter. In particular, €7 million has been allocated to 11 coastal local authorities in respect of 111 projects. In this context, the Minister has approved funding of €2 million for Galway County Council to repair 15 piers and harbours around the county's coastline.
I thank the Minister of State for his reply. I am glad Ros a' Mhíl is still on the agenda, but the economic case has to be proven. A great deal of documentation has been sent to the Minister on that. I will talk to local people who are on the committee to put the material back on the Minister's desk. Will the Minister of State indicate to the Minister, Deputy Simon Coveney, that the potential to open up the land bank around Ros a' Mhíl and create a ripple effect for jobs on the west coast is completely dependent on the development of the deep water berth? It is essential that the Minister place the matter higher up the list of priorities as it is not just about the pier itself or a storm damage scenario but also an investment in the future that will create jobs and employment. The multiplier effect for the west in general would be very great.
As the embarkation point for 500,000 visitors to the Aran Islands, it is very much welcome that development aid provides for a dedicated ferry berth with a water depth of 3 m. Also included in this portion was provision for a limited amount of dredging in the inner harbour area and navigation channel which has been completed. As the Minister said, a great deal of money has been spent to date. BIM is carrying out due diligence on the aquaculture potential of the area. I have no doubt that when that report is on the Minister's desk, there will be a debate in the Seanad on how best to progress matters.
Homeless Accommodation Provision
I thank the Minister of State, Deputy Jan O'Sullivan, for taking this matter. I raise the case of a young family which is relevant to the broader question of housing. The family have been struggling to find suitable rented accommodation in Dundalk where a landlord will accept rent allowance. They have been having this problem for a number of months. I have been in contact with the family daily as they have recorded the difficulty they have experienced in finding accommodation. They have only been on the housing list in recent months on foot of various factors and, therefore, cannot be assisted by Louth County Council as the father was in employment until December. The problem has escalated since.
Currently, the family have €374 coming in. They knew this was coming up and have been preparing and searching. The mother has put an advertisement on daft.ie seeking a response but has had no success. The family members met the homelessness officer in our area to discuss their situation as they were nearing the time when they knew they would have to move out of their rented accommodation. I was shocked to hear that they were told the mother would be put into one hostel and the father into another, while the children would be taken into care. That was confirmed again for me today. This is just pushing a problem from one agency to another. Something must be done to make rent allowance more acceptable to landlords. The only solution that has been presented to the family is clearly a drastic one.
The family have become homeless in recent days and now face the threat of their children being taken into foster care. That is not the intended use of foster care. These are excellent parents and want to continue to be. It is very sad that a family should have to be split up over something that is out of their control. The mother is recovering from recent and extensive surgery and needs accommodation that is conducive to meeting her medical needs. A hostel would not be appropriate.
While I hate to use the word "crisis", there is a housing crisis, not only in County Louth but also nationally. There are people in serious circumstances, both financial and medical, who are waiting year after year for accommodation. The Minister of State is well aware of the housing issues and I commend her for the work she has done. I ask that she look into at sad and unfortunate case, as well as the general issue to see if there is something that can be done to help people relying on rent allowance to find accommodation.
I thank the Senator for raising the issue. It is always very difficult when one meets a family in circumstances such as those outlined. There are a variety of complex reasons people become homeless. It is challenging to find solutions to every individual's problems. Certainly, loss of employment, to which the Senator referred, is often the trigger, combined with the current general decline in the supply of available, accessible and affordable rentals.
Increasing both public and private housing supply is a critical issue for the Government. I have published a homelessness policy statement outlining a housing-led approach, which is about avoiding people going to hostels and ensuring they go into homes where they can receive support when that is needed. I have established a homelessness oversight group which has submitted its first report to me. The report considers the lack of social housing for homeless households and those interested can access it on my Department's website.
We also established a high level homeless policy implementation team and its job is to implement the oversight group's report and to bring forward a structured, practical plan to make the transition from a shelter-led response to a sustainable housing-led response to homelessness and to achieve the 2016 goals for homelessness. The team will report on this plan to the Cabinet sub-committee on social policy later this month and I will report directly to the Cabinet on the issue.
Significant moneys are provided for homelessness services and for the new provision of new homes. I expect that approximately 5,000 social housing units will be provided this year. Large numbers of people are on housing waiting lists and I am committed to developing innovative and sustainable approaches to the provision of social housing. I would like to increase the supply of new social homes and to ensure every available appropriate unit is transformed into a home as quickly as is reasonably possible. We will provide funding for void or empty local authority houses in the next few weeks, which will bring some houses back into use.
The purpose of this Department of Social Protection-led rent supplement scheme is to provide short-term income support to assist with reasonable accommodation costs of eligible people living in private rented accommodation. Currently, there are approximately 78,000 rent supplement recipients for whom the Government will provide more than €344 million in 2014. My Department understands 2,400 rent supplement recipients reside in County Louth with 1,100 in Dundalk. This is what I have been told, but I acknowledge the Senator is on the ground. A significant number of landlords, therefore, accommodate applicants on the scheme. The analysis suggests properties are available in County Louth and Dundalk within the current maximum rent supplement limits but I understand that may not be appropriate for the size of family to which the Senator refers and that every case is unique. The Minister for Social Protection and I are moving towards introducing the housing assistance payment, HAP, which will transfer responsibility for long-term rent supplement recipients to local authorities. This will make it easier to find appropriate accommodation for people. I appreciate the Senator has an urgent case on her hands and it is distressing for the family concerned.
Homelessness is a major problem in the Dublin area and a co-operative system has been set up among the local authorities and community welfare officers from the Department of Social Protection to intervene where families, in particular, are in danger of homelessness and to address the issues they face. Louth County Council is the lead authority in the north east homeless region and the Senator said the family approached the homeless unit. However, we have not cut the funding for homelessness this year and we have given the same amount to each region. I appreciate the family is stuck in this position and if there is any way I can provide advice, I will but, in general, we are trying to move towards a system that is more concentrated on ensuring families do not become homeless and to intervene as early as possible.
I thank the Minister of State. I was shocked by the solution offered to the family. I am glad that measures are being taken, but, unfortunately, they will do nothing to alleviate the problem faced by this family. I would have hoped this issue would have been addressed before the problem arose, which is why I encouraged them to speak to the homelessness officer weeks before they knew they would have to leave their house and, therefore, I would appreciate any advice the Minister of State might have on any other avenue or assistance that can be explored. I have spoken to Louth County Council officials who have stated the number of houses and landlords with property available in Dundalk, but, unfortunately, the family has had a major problem sourcing accommodation under the rent supplement scheme. That is why they had to leave the house they were in.
I commend the Minister of State's initiative to reduce the number of vacant houses. That will be particularly welcome in Dundalk and other towns in which there are such houses, as they can now be provided.
I am determined to make sure there are no vacant houses in areas where people need homes. We need to match people with the houses. There are specific issues relating to the increase in rents which this family has been caught up in. I will be happy to advise the Senator in this regard following the Adjournment.
The Seanad adjourned at 5.25 p.m. until 10.30 a.m. on Thursday, 10 April 2014.