I welcome the Minister of State, Deputy Gerald Nash.
Commencement Matters
Nursing Staff Recruitment
I, too, welcome the Minister of State and thank him for coming to the House to deal with this matter. My understanding is that more than 700 applications for registration with the Nursing and Midwifery Board of Ireland are pending. Earlier in the year I received representations from an Irish person who, following completion of her training in England, had returned to Ireland to take up a job but was unable to do so for 14 weeks even though the hospital needed somebody urgently. The Minister of State, Deputy Kathleen Lynch, is reported in today's Irish Examiner as saying a unit in Cork cannot be opened because the 40 nurses required are not available. Much of the funding for this unit was raised voluntarily. However, because of a lack of nursing staff, it cannot open. I am not suggesting this is connected to the delays in registration with the Nursing and Midwifery Board of Ireland, but it must be a contributory factor.
I understand from Nursing Homes Ireland that the HSE is recruiting nurses currently working in private nursing homes and that this is resulting in a significant shortage of nurses in the private nursing home sector. The private nursing home sector proposes to recruit an additional 300 nurses in the next couple of months, some of whom may be Irish nurses working abroad wishing to return home, which will result in the number of nurses awaiting registration with the Nursing and Midwifery Board of Ireland increasing to 1,000. The registration body has cited the cost of employing staff as the reason for the delays. This issue needs to be addressed. We need front-line staff and competent nurses. If we cannot register these staff within a reasonable period, they will continue to go to other jurisdictions such as Canada, the United States, the United Kingdom, New Zealand, Australia and so on. People will look to other alternatives if there is undue delay in the process here.
My understanding is that for people coming here from outside Europe, registration takes six to eight months. It is horrendous that people have to wait that length of time to be registered and as a result are looking to other jurisdictions. I am asking that the Minister engage with the board to see if a solution to this problem can be found such that anybody who applies for registration can be registered in a timely manner.
I thank the Senator for raising this issue. I am taking this matter on behalf of my colleague, the Minister for Health, Deputy Leo Varadkar, who is not available owing to Government business.
I wish to advise the Senator that Department of Health officials met the president and the chief executive of the Nursing and Midwifery Board of Ireland, NMBI, last week to discuss a range of operational issues, including the current delays in registration. The NMBI is keeping the current situation under review. The Senator may wish to know that the NMBI has been allocated additional resources to address the issues which he outlined.
Delays in processing nurse registration applications are directly connected to the volume of requests arising from current initiatives to attract and retain nurses in the health services. The Department of Health and the Health Service Executive are collaborating to find solutions to meet the issues arising in regard to nurse recruitment and retention. The background to this issue is that nurses who trained in a country outside Ireland and wish to work in Ireland are required to apply to register as a nurse with the NMBI. In assessing an applicant for registration and in order to protect the public, the NMBI seeks evidence from applicants of comparable standards of education and practice.
According to the NMBI, the timeframe for completion of the assessment of qualifications for registration is up to a maximum of 90 days provided all necessary documentation has been supplied by the applicant. The main difficulty in expediting timely applications, as reported by the NMBI, is the failure by the applicant or third parties to furnish the documentation required to assess eligibility for registration, or the delay in so doing. The board, following assessment of qualifications by an applicant, may require him or her to undertake a six to 12-week period of adaptation and assessment. This period of adaptation is designed to make up for differences in education and ensure competence to work in the Irish health service. If such adaptation is required, it must be successfully completed as a prerequisite to registration.
There are two remaining HSE adaptation courses available this year, in June and August. These courses are six to 12 weeks in duration and facilitate the integration of global nurses to nursing in an Irish context. Since the nationally co-ordinated pilot adaptation programme commenced in June 2014, 151 candidates have completed the programme, 58 are undergoing assessment and 126 are due for assessment up to the final programme in August 2015. Outside of the current provision for placements in 2015, there are 293 requests for placements by employers. These numbers are not reflective of a national total as some hospital sites run independent adaptation programmes.
A collaborative group, including the Department of Health, the HSE and Nursing Homes Ireland, NHI, representatives, continues to explore options to facilitate adaptation. In this regard, some hospitals will respond to local need from local nursing homes and this has been encouraged within the hospital group structures. Other hospitals will continue to support placements pending funding from NHI, although not at peak undergraduate student times. In addition, some hospitals are withdrawing from the provision of clinical placements to facilitate their own internal international recruitment initiatives.
It is important to note that the NMBI is dealing with very significant volumes of applications. It is processing all applications as quickly as possible, while ensuring appropriate procedures and checks are adhered to with a view to ensuring protection for the public. As I said, the chief executive officer of the board met departmental officials last week to discuss a range of operational issues, including the current delays in the registration process. The NMBI is keeping the situation under review and has been allocated additional resources to address the issues the Senator outlined.
I thank the Minister of State for his comprehensive reply. He has indicated that registration takes up to a maximum of 90 days provided all necessary documentation is supplied. The complaint I have had from applicants is that it is six to eight weeks after submission that they are being told their documentation is not in order. That leads to a delay in the process. I am proposing that all applications be assessed within a very short timeframe, preferably within a week of their being submitted, and if any documentation is missing, the candidate should be notified immediately rather than having to wait six to eight weeks for such notification.
In regard to the adaptation courses, my understanding is Nursing Homes Ireland intends to seek to expedite the provision of those courses by putting its own funding in place, with the co-operation of hospitals. It has no choice in the matter and the Department needs to understand the urgency of the situation.
More than 23,500 people are accommodated in private nursing homes. While these homes are well run by competent staff, when staff shortages occur, the downside is that patients suffer. That is the reason I seek to have this matter prioritised.
I thank the Senator for his remarks on this important issue which all of us have encountered locally or in our constituencies, especially in areas that are coming under significant pressure in terms of demographic demand and access to health care facilities. The Senator is correct that the private nursing homes industry plays an important role, alongside the public service, in providing top-class health care for older people in residential settings. I am familiar with the needs of private health care providers of nursing home care in my constituency. I am also aware that in recent years some leading providers of private health care have had to go as far afield as India to try to access appropriately qualified nurses to work in their homes and provide the type of health care we expect.
There is good reason for the standards we have put in place through the Nursing and Midwifery Board of Ireland and State agencies to ensure health care is provided for those who need it in a safe and effective manner. However, I accept the Senator's point on the validation of documentation which, in the normal course of events, is provided for the Nursing and Midwifery Board of Ireland. As I indicated, it takes a maximum of 90 days to have the application process completed, provided all necessary documentation has been supplied by the applicant. While 90 days appears to be a reasonable period, it can be frustrating if an applicant learns further down the line, having submitted documentation, that there is a problem. We expect all State agencies and other relevant actors engaged in this sector and other areas to ensure the first step in such application processes is to ensure key paperwork and documentation is validated and checked and early engagement takes place with applicants to ensure the system is as streamlined as possible.
We should always be mindful that the health service is under extreme pressure. If there are obstacles or roadblocks that can be removed early in the process, it is a matter for the relevant agencies to ensure this is done. I will communicate the Senator's concerns to the Minister for Health and ask him to ensure the issues he raises are addressed.
Job Losses
I welcome the Minister for Jobs, Enterprise and Innovation, Deputy Richard Bruton.
I, too, welcome the Minister and thank him for coming to the Seanad to discuss this important issue.
As Members will be aware, on Thursday, 25 June, Liberty Insurance announced it would make 270 workers redundant, 135 in Blanchardstown, 115 in my home town of Cavan and 20 in Enniskillen. These redundancies are in addition to 285 job losses in the company in November 2012. Liberty Insurance, formerly known as Quinn Insurance, has been an important and major employer in Cavan town since its operations commenced in the mid-1990s. The sale of Quinn Insurance to Liberty Insurance was concluded in October 2011 when, I understand, the latter purchased 51% of the former for €1.
While I understand there were some debts involved, in common with the people of County Cavan and surrounding counties, I still believe Liberty Insurance got a good deal on that occasion and that it has an obligation to maintain jobs in that area of the country, as well as in Blanchardstown and Enniskillen. In a statement issued last Thursday, my colleague, Deputy Brendan Smith, called on the Minister to engage immediately with Liberty Insurance with a view to retaining the maximum level of employment in this company and I join him in that call. He also stated clearly that when Liberty Insurance purchased the former Quinn Insurance in October 2011, at the time the company stated it would maintain more than 1,000 people in employment in the three areas. At the time, the Minister for Finance, Deputy Michael Noonan, stated with regard to the sale of Quinn Insurance that he welcomed the positives of the proposed agreement in that almost all of the 1,500 jobs in Quinn Insurance would be retained. That figure speaks for itself when one now is talking about 950 jobs in the three locations. The company has stated the redundancies will take place over an 18-month period, but I understand it has given employees two weeks in which to make life-changing decisions without providing the necessary advice and support to them to make such decisions. The staff were told that assistance will be provided once the voluntary process was complete, but that is not acceptable. Once the process is complete will be too late to offer advice and assistance to these workers, as they need assistance now.
Although the company has offered voluntary redundancy, people have concerns that by accepting it, they will make wrong decisions that could have an impact on their social welfare and mortgage protection entitlements. Moreover, in the case of up to 40 workers who work as claims staff in the Cavan office, the decision really already has been taken out of their hands because their roles are being relocated to Blanchardstown. This decision makes absolutely no sense, given the collective experience of these people and that new people must be trained for these roles should the staff in County Cavan not relocate. Moreover, I understand the vast majority of them are not in a position to so do. I understand that the decision to move these claims jobs was made by the new head of claims, as he believes all claims staff should be based in the Dublin office, yet there is a mix of staff from other areas throughout all the sites.
Unfortunately, this company has been through this process before. The same human resources team and many of the senior management team are in place, yet the current process is flawed with no empathy or concern being shown for the employees. Liberty Insurance purchased the remaining 49% of the former Quinn Insurance in December 2013 and now has 100% ownership of this company. I ask the Minister to use his good offices to try to maintain the jobs in these three centres. I am particularly concerned with regard to the site in Cavan, which is the one I know best, but people in Enniskillen and Dublin also depend on this company for their jobs. Morale is at an all-time low in these three offices and the big fear is that Liberty Insurance is preparing to downsize, move jobs elsewhere and eventually to sell off the Irish operation. This is not good enough and if these jobs cannot be saved, I ask the Minister to have the statutory agencies work with these workers as a matter of urgency.
I thank the Senator for raising this matter. Our sympathy is most definitely with the workers in Cavan, Blanchardstown and Enniskillen at this very difficult time.
This is a very disappointing development. The Senator has outlined what will be the impact in the three locations, namely, 135 job losses in Blanchardstown; 115 in Cavan; and 20 in Enniskillen. The company has given the reasons behind its decision to withdraw from the British market and to make significant changes to its operations in Ireland. It has experienced a difficult trading period and is now going to focus on the Republic of Ireland market. I do not believe it is fair to say the company is preparing for an exit. That is by no means an accurate reflection. I am encouraged by the company's statement to the effect that it is fully committed to Ireland, that it will be seeking voluntary redundancies in the first instance and that the process in this regard will be phased over an 18-month period. That is encouraging and I hope that when it is offering terms to workers, the company will recognise the contribution they have made over a long period by offering them a good package. On the positive side, Liberty has confirmed that it is continuing with its IT initiative, which was the basis for the announcement of the creation of 150 jobs in 2013. This initiative is located at the Blanchardstown office and it shows that the company continues to be committed to Ireland. We will ensure the relevant agencies work closely with Liberty in order to see to it that any future opportunities relating to the company can be maximised as it evolves.
My immediate focus rests on the instruction I issued to IDA Ireland and Enterprise Ireland to redouble their efforts in respect of job creation in County Cavan and to explore all options in the context of replacing the jobs that have been lost there. The past couple of years in Cavan-Monaghan have been good. It is particularly encouraging to see the very strong performance of a number of Irish-owned companies in recent times and quite a number of them across the two counties, including Lakelands, Combilift, Glanbia, Swift and Lagan Brick, have expanded their operations. It is encouraging that in 2014 the IDA Ireland and Enterprise Ireland job base grew by 9% and that there was an 11% increase in the number of jobs created by means of the local enterprise office, LEO, network. We are enjoying some successes and I am developing a regional enterprise strategy. The latter will be for every region, but it will have particular focus on the Border region, which has a number of significant strengths on which we hope to build.
If the employees of Liberty require the assistance of the National Employment Rights Authority, NERA, or other State agencies, in dealing with their current circumstances or making particular decisions, I will be quite happy to ensure it is made available to them. I recognise that this is a difficult time for the people involved. I will ensure we will redouble our efforts. We have witnessed the potential of enterprise in the region and need to build on this in order to try to replace lost jobs and ensure opportunities emerge for those people who have been so badly impacted on by this decision.
When 285 redundancies occurred in 2012, the statutory agencies worked very well with the employees involved.
I would like the Minister to give a commitment - I acknowledge that he alluded to this in his reply - that the same emphasis will be placed on these people who will potentially lose their jobs in all three centres.
I am most familiar with the Cavan centre. While it is unfortunate that jobs were lost a few years ago which should not have been the case, following a commitment by the company to retain them, assistance was provided by the statutory agencies, including the Cavan and Monaghan education and training boards, the Minister's Department and various other Departments. I would like him to give a commitment that he will co-ordinate a similar approach as a matter of urgency. I reiterate that the spin on this is that the redundancies will take place over 18 months, but workers have been given 14 days to make a life-changing decision for themselves and their families. These decisions will also affect the communities they live in. In 2012, when there were 285 redundancies, Liberty Insurance issued a statement saying, "This development is necessary to secure the future of the company." However, last Thursday, there was an announcement that 270 jobs would be lost, and the president of Liberty International issued a statement saying, "Liberty Mutual remains fully committed to building a successful business in Ireland." If 270 redundancies on top of 285 redundancies on top of 150 redundancies equates to "building a successful business in Ireland", then there will be serious concerns for the remaining workers down the line.
I am happy to give the Senator a guarantee that the resources of the State, through my own Department, NERA, the Department of Social Protection and the education and training boards, will be available to workers. The company is in a 30-day consultation period and it has obligations during that period to consult its workers. I do not propose to comment on those consultations but, obviously, the resources of the State, such as the Labour Relations Commission, will be available to assist if there are issues on which advice could be given.
This is a difficult reminder of the challenging competitive environment in which every industry operates. There will always be reverses; one cannot put one's hand on one's heart and say about any sector that there never will be a challenge and everything will be perfect. There will always be change and the difficulty is that the changes that have occurred in the UK insurance market have caused difficulties for this company. It is a battle every day in respect of our approach to supporting companies that are facing threats, while also supporting companies that are considering opportunities. It is positive that in Cavan and, indeed, in the country as a whole, we are winning more of those battles than we are losing. A total of 105,000 additional people are at work since we commenced the Action Plan for Jobs in 2012, with approximately 19,000 of those in the Border region. More companies are expanding than are getting into difficulty. However, this is a timely reminder that we have to always be vigilant and make sure we make the changes and create the competitive environment in all our areas of endeavour to support growth because there are always challenges around the corner.
I thank the Senator for raising this issue and assure him that I will talk to the agencies to ensure timely support is available for the people affected.
Harbours and Piers
I welcome the Minister of State at the Department of Agriculture, Food and the Marine, Deputy Tom Hayes.
I also welcome the Minister of State. As he is aware, last week the Committee of Public Accounts published a report into the six fishery harbour centres. On reading the report, I share the committee's concern that the harbours are managed properly and that the employment potential of the fishing, seafood processing, boat repair and other industries are maximised. The report gives a good account of the issues and challenges present and what the Department needs to do to address them.
I also support the recommendation that the Department improve its relationship with harbour users to ensure they genuinely engage with them, listen to their concerns, support people and work with them to maximise the potential of their businesses and ensure vacant properties are put to best use from commercial and community points of view.
I was very concerned about one of the report's recommendations, which is that the Department consider introducing paid parking in Howth. This is an issue about which I have written to the Minister, Deputy Simon Coveney, on several occasions in the past since January 2013. I also tabled a Seanad debate on this two and a half years ago to highlight the very damaging impact that paid parking would have on Howth. I had hoped that as this has not been implemented in the intervening two and a half years, the Department had listened to the issues I had raised and the feedback from various stakeholders in Howth, looked at the fact that one in three local authority paid parking schemes loses money and had seen sense on this issue and was not going to proceed with it. I was very concerned to see the Committee of Public Accounts make this suggestion again last week.
I am also concerned the committee looked at it from a very narrow approach. It only considered the issue of paid parking from the perspective of the Department and Howth as a fishery harbour. Howth is not just a fishery harbour. It is unique in that fishing is just one of the activities which takes place there. It is also a major tourism, sport, leisure and community resource. As a representative from the area, it has always frustrated me to see the harbour in the broader sense not utilised as well as it could be. One visits places on the Continent with half the natural resources and beauty of Howth which are used to full advantage where state authorities work with all stakeholders to ensure this happens, but in Howth there always seems to be a difficulty and a lack of ambition and support for local initiatives.
My concern about paid parking is that activities such as tourism, local restaurants, marine leisure and walking are very dependent on the availability of free parking. Howth is not somewhere one pops into for an hour or two. It is difficult enough to reach. Unfortunately, our public transport connections are not great and particularly at weekends there can be a 30 or 40 minute gap between DART services. Unfortunately, if people want to get there, they need to be able to drive. People going for a walk do not know whether they will walk for two or four hours. When they get to the top of Howth Head, they do not want to be in a rush to go back to feed the meter. When they get to the top of the hill, they want to sit down and enjoy the view. It is the same when people go out on the water. If they are sailing, they are highly dependent on weather and do not know how long they will be. When they are out on the water, they cannot have the anxiety of being clamped.
Paid parking does not make sense in Howth. I appreciate it makes sense in areas where there is a shortage of parking such as in Dublin city centre and the only way to control it is to have a system which discourages people from constantly driving and taking up the limited number of spaces. In Malahide local businesses sought paid parking because they had a concern about people parking all day from first thing in the morning and anybody who wanted to go in and out of a local business during the day could not get a space. This is not the case in Howth which has plenty of parking spaces available. We do not have a shortage unless a major event is taking place and we have one or two major events during the summer. This is the only time there is a shortage of spaces.
I have tabled this matter to highlight yet again the negative impact paid parking would have on Howth and ask the Minister of State who is representing the Minister, Deputy Simon Coveney, to bring this message back to him.
The issue needs to be considered in the round not just having regard to the narrow fisheries perspective from which the Committee of Public Accounts viewed it. The Department must consider the fact that paid parking would put people off travelling out to the area to shop, eat in restaurants, go walking and take part in sports activities. Any economic analysis must take account of the loss to the broader local economy and the impact on jobs and not just the fisheries aspect.
I reiterate the call I have made previously in the House for the Department of Agriculture, Food and the Marine, Fingal County Council and tourism and other major Government agencies with an interest in Howth to work together to maximise its potential from a fishing and employment point of view but also from a tourism and community resource perspective. That is badly needed and I urge the Minister of State to bring that message back to the Minister.
I am standing in for the Minister for Agriculture, Food and the Marine, Deputy Simon Coveney. I thank the Senator for raising this important issue and acknowledge her interest in Howth and the contribution she has made there. Howth Fishery Harbour Centre is one of the six designated fishery harbour centres which are owned, managed and maintained by my Department under statute. All six fishery centres are first and foremost working fishery harbours. However, each centre has unique features which facilitate a broad range of other diverse activities which are important from both an economic and social perspective. The Department is conscious of the importance of both fishing and non-fishing activities at the harbours and endeavours to facilitate and develop both. This involves day-to-day operational support by harbour staff and management and development and repair of infrastructure subject to available financial resources.
Howth Fishery Harbour Centre is no exception to this diversity. In addition to fishing, there is a wide range of recreational users of the harbour, including the yacht club, sport fishermen, walkers, tourists and other social users. There is a significant number of businesses, particularly restaurants, operating in the harbour centre. Notwithstanding the prevailing economic environment in which we operate, I am happy to advise that in excess of €5.3 million has been invested in maintenance, development and upgrading works at Howth Fishery Harbour Centre as part of the Department's fishery harbour and coastal infrastructure development programme from 2006 to 2014. However, the volume of capital investment in Howth has increased significantly in recent years with the bulk of this capital investment, or €3.78 million, being made in the 2012 to 2014 period. This investment will result in a significant improvement in the traffic management system, access for persons of reduced mobility and the electrical infrastructure. In addition, it will act as a catalyst for the enhancement of facilities available to the marine leisure and tourism sector, boat repair facilities and business generally in the harbour.
The increased level of capital expenditure in Howth in recent years is being maintained. In March 2015 the Minister approved further funding of €1.584 million for the maintenance and development of Howth Fishery Harbour Centre. Major works for 2015 include the provision of a small craft pontoon and the continued upgrading of the electrical system. The development and upkeep of Howth as a state-of-the-art fishery harbour centre supporting a broad range of marine related and other activity will remain an ongoing process. The property portfolio in Howth includes a diverse range of properties. My Department reviews the portfolio on an ongoing basis to maximise returns for the Exchequer. The two properties at issue were made available by competitive public tender on 15 June.
The Senator referred to the question of the introduction of paid car parking at Howth Harbour.
I can inform her that this matter remains under consideration as part of an overall review of traffic management arrangements.
In a special report by the Comptroller and Auditor General and the related report of the Committee of Public Accounts of 24 June 2015, the Department is asked to review the position regarding paid parking in Howth, in conjunction with other fishery harbour centres, with a view to increasing income generation possibilities. However, income generation is not the only factor to be considered in deciding whether paid parking should be introduced in Howth. There is a broad range of other factors to be taken into account before a final decision will be made on the matter. Most importantly, the safe operation of the harbour is of paramount concern. In this context, traffic management and parking is recognised as an issue, particularly, though not exclusively, during the busy holiday periods.
As I said, while Howth Fishery Harbour Centre is first and foremost a working fishery harbour, the Department is conscious that it is also a very important tourist destination, as well as a major venue for leisure activities. With that in mind, the Department is anxious to increase the profile of the harbour for the betterment of the wider community. To this end, the harbour regularly approves applications for events, yacht races, local celebrations and various functions within the harbour precincts. For example, in April 2015, the Dublin Bay Prawn Festival was held at Howth Harbour over three days. It is estimated that this event alone attracted more than 25,000 visitors to the harbour. In July 2014, a similar number of visitors attended the Asgard centennial celebrations, which were held at Howth Harbour, with the keynote address delivered by President Higgins. Various marine leisure events such as national and international races and regattas, also attract thousands of visitors each year. In addition, the Howth tourist information office opened within the confines of Howth Fishery Harbour Centre in July 2014.
I assure the Senator that my Department will continue, where appropriate, to facilitate initiatives to promote Howth and to liaise with key stakeholders on an ongoing basis as required. Balancing the needs of the fishing industry with those of the wider range of harbour users, while delivering on a public service remit, will be foremost when considering future developments in the harbour. Any new developments will be undertaken on the basis of available Exchequer funding and competing national priorities.
I welcome the Minister of State's acknowledgement that Howth is more than just a fishing harbour. He listed some of the major events held there that help to attract people to the area, including the prawn festival, the Asgard celebrations and major leisure events, but I cannot stress strongly enough how central the availability of free parking is to the success of such events. Howth Yacht Club has made that very clear in its submissions to the Department of Agriculture, Food and the Marine about this issue. Parking availability is essential if Howth is to win bids for major sporting events, because people heading out to sea are hugely dependent on the weather and cannot determine whether they will return in an hour, two hours or three hours. It is important to stress that the reason we have had those successes is that we have sufficient availability of free parking. The implementation of paid parking in other areas such as Dún Laoghaire has been a disaster from the point of view of holding marine leisure events.
It is welcome that the Minister has recognised that there are broader issues involved, but I am disappointed that the issue is still under consideration. I had hoped, as it has not been implemented in the past two and a half years, that the Department had considered it in the round and was backing away from the disastrous impact this would have on Howth. The Minister of State mentioned the reports of the Committee of Public Accounts-----
Does the Senator have a question? We are way over time.
-----and the Comptroller and Auditor General. I ask him to reiterate to the Minister that the issue needs to be considered from a broader perspective and not just from a fishing point of view, which was the approach taken by the Committee of Public Accounts. That approach is deeply flawed. We need a proper cost-benefit analysis to show that the proposal stands up and I am fully confident that if such an analysis were made, the Minister would change his mind.
I will be brief and respond on the paid parking issue. The Senator is correct in that paid parking is a concern in many areas and she is not alone in her views about it. Right across the country there are other projects dealing with the issue. I will relay the Senator's points about paid parking to the Minister as I know how passionate she is about it and how strongly she feels about the topic. I understand her concerns and there is a place in my constituency where we have to deal with the paid parking issue also. However, if resources are required, one must get money in and, in the overall context, anything that is done will be in the best interests of the harbour. I will make these points to the Minister.
Natural Gas Grid
I welcome the Minister of State, Deputy Joe McHugh, to the Chamber.
I request the Minister for Energy, Communications and Natural Resources to explore additional funding streams in order to provide for the roll-out of natural gas areas of strategic importance. Extending the gas network requires Government level support and an obvious starting point would be to use some of the profits from the sale of the Bord Gáis energy division to bring gas to smaller towns, providing for above-ground installation. This would go some way towards reducing our dependence on imported fuel and protecting the environment, which will be of much economic and social importance in the years ahead.
Natural gas is a clean, efficient and cheap alternative to fossil fuels and helps to eradicate the scourge of fuel poverty for low-income families. Major multinationals such as pharmaceutical companies, for example, rely on gas lines and from a foreign direct investment standpoint, access to gas networks makes Irish communities all the more attractive to those considering basing themselves here. As Ireland begins to rebuild after austerity, we need to do everything possible to attract corporate heavy hitters to our shores and a well serviced and widely available gas network could really assist with such endeavours.
As somebody based in Galway East, I take my home town of Athenry as an example. Putting Athenry on the gas network would not require major investment and it would reap many rewards for the locality, especially with Apple's arrival on the horizon. In the first instance, the work required would create short-term employment, but local residents and businesses could enjoy the ease of having the option to use a gas network if they so desired. In the light of the Apple announcement, demands for homes in my area is likely to rise and being on the gas network would further increase that demand. The entire community, from small businesses to home owners and large corporations, stands to benefit, offering a major return on the initial investment. I certainly hope the Minister of State will pass this message to the line Minister. We should consider finding alternative revenue streams. For instance, we could get a portion of funds from the sale of the Bord Gáis energy division to ensure places such as Athenry and towns right across the island could access the gas network to the benefit of local citizens.
I thank the Senator for raising the matter which I will address on behalf of the Minister for Communications, Energy and Natural Resources, Deputy Alex White. I will certainly convey the Senator's concerns to him.
I will cover in my remarks how Ireland's natural gas network infrastructure is assessed, planned, rolled out and funded under our own and EU-compliant gas regulatory framework. The development and expansion of the natural gas network is in the first instance a commercial matter for Gaslink. Gaslink is mandated under section 8 of the Gas Act 1976, as amended, to develop and maintain a system for the supply of natural gas that is both economical and efficient. Gaslink receives revenues from gas consumers to fund its operations and functions, including the development of the gas network. The Commission for Energy Regulation, CER, is statutorily responsible for all aspects of the assessment and licensing of prospective operators who wish to develop and operate a gas distribution system within the State under the Gas (Interim) (Regulation) Act 2002.
As regards the development and rolling out of the natural gas network, the CER approved a gas connections policy in 2006 that enabled assessment of the feasibility of connecting new towns to the gas network. In order for any town to be connected via new infrastructure to the gas network, certain economic criteria must be satisfied. The policy provides that the construction and operating costs of connecting a town, or group of towns, to the network are recovered through the consumption of gas and the associated network charges on consumers.
The distance of a town from the gas network is the major factor in determining the cost of building a gas pipeline. The anticipated industrial or commercial gas usage in the town largely determines the revenue from gas network charges which must balance the connection costs. Uneconomic gas pipeline projects would unfairly increase energy costs for all gas consumers.
Gaslink has completed three comprehensive studies of nearly 80 towns in the context of connections to the gas network, resulting in more than 20 new towns having been connected in recent years. The key factor which would qualify a town or a group of towns in any future review would be a significant increase in demand for natural gas, probably resulting from the addition of a new large industrial or commercial facility.
As regards funding streams for the roll-out of natural gas, energy infrastructure is usually financed by the market and through tariffs paid by users. However, in order to meet the challenge of interconnecting all EU member states by 2020, the European Union has established funding to leverage the investment needed. The most prominent of those funds is the Connecting Europe Facility, CEF. I can go into more detail separately on these new funding streams and their implications for Ireland, if the Senator wishes.
While I again stress that energy infrastructure is usually financed by the market and through tariffs paid by users, both CEF funding and the recently proposed European Fund for Strategic Investments, EFSI, are very important for, and welcomed by, Ireland as additional funding streams and will assist in ensuring the correct balance is struck between cost burdens and cost benefits in further developing our electricity and gas infrastructure. I am conscious that my response is broad, but it was provided in response to the broad question put forward by the Senator.
In regard to the Senator's reference to the new investment in Athenry, the consultation process which is under the authority of CER is reviewing submissions and hopes to conclude its work in this regard in the coming weeks. I am sure it will consider all areas that may warrant investigation. This is about demand and not impinging on the price in the marketplace for the consumer.
I accept the role of Gaslink in all of this. However, the Government and, in particular, the Department of Communications, Energy and Natural Resources, have an obligation to fund Gaslink to enable it to expand the network. In regard to Athenry, there is a large volume of industry in the region and this is set to increase following the granting of the planning permission for the Apple project. There is also a strategic investment site earmarked for development by IDA Ireland. Athenry is also a nodal point in Galway, with motorway and rail networks making it attractive to people seeking housing. I expect the population in Athenry to increase into the future, leading to a potential increase in the demand for natural gas. I ask that consideration be given to my proposal that funds from the sale of the Bord Gáis energy division be allocated to the roll-out of natural gas in strategic locations across Ireland - Athenry, my home town, being one of them.
I will convey the Senator's message to the Minister. However, I must reiterate the importance of strategic decision-making. Athenry, Craughwell, Headford and Tuam in County Galway and Ballina, Ballyhaunis, Castlebar, Claremorris, Crossmolina, Knock and Westport in County Mayo were included in phase 1. Construction on this €40 million project has been completed and the towns of Craughwell, Tuam and Headford in County Galway and Ballina, Castlebar, Claremorris and Westport in County Mayo have been connected to the gas network. The Senator will be aware that connection in respect of the three remaining towns of Athenry, Ballyhaunis and Knock is uncertain, which is the reason she has raised this issue. I am sure the representative bodies from Athenry have made representations regarding existing industry and potential future industry in the region to the consultation process. The report of this process, commissioned by the Commission for Energy Regulation, is awaited.
Official statutory responsibility for these matters was given, via legislation, to the Commission for Energy Regulation in 2006. The commission has a responsibility to decide which towns have sufficient demand and ensure decisions made are economic and strategic. If we bring gas into towns where it does not make economic sense to do so, we are into a situation where there will be additional costs for consumers. These are the mitigating factors. I take the Senator's point, however, that if extra moneys were available, there would be scope to balance the demand versus supply issue. I will convey that message to the Minister.
Sitting suspended at 3.30 p.m. and resumed at 3.35 p.m.