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Seanad Éireann díospóireacht -
Wednesday, 30 Sep 2015

Vol. 242 No. 4

Commencement Matters

Office of Public Works Properties

I welcome the Minister of State at the Department of Agriculture, Food and the Marine.

I thank the Cathaoirleach for accepting my Commencement matter and welcome the Minister of State. I understand the Minister of State at the Department of Finance, Deputy Simon Harris, who has direct responsibility for this matter is unavoidably absent owing to Government commitments.

The buildings to which I refer are in the ownership of the Office of Public Works, OPW, and located in Corofin, County Clare. They are adjacent to the community hall in the town and the buildings have been derelict for many years. There is a very active community council in Corofin, as well as a very active Tidy Towns committee. The Comhaltas branch, with which my colleague Councillor Joe Arkins is involved, is also extremely active. The community has recently invested a significant sum in upgrading its community hall which was officially opened on 11 September last. Many communities have lots of good people working in them, but Corofin, County Clare is exceptional in terms of sheer commitment, with locals involved in sports, theatre, the arts, the Tidy Towns committee, community groups and so forth. A local community group has expressed an interest in taking over the derelict buildings which are in the ownership of the OPW. They are interested in either purchasing the properties at a nominal price or taking them over on a long-term lease for a nominal fee.

They have sent numerous items of correspondence to the OPW's offices in Trim, to which they have always received courteous replies. They have had numerous acknowledgements of their propositions, worded differently but essentially saying the same thing, namely, that there is no interest in doing anything.

I acknowledge that circumstances have now changed. Many Garda stations are vacant. I salute the Minister for making vacant Garda stations available to members of the community where it is deemed appropriate, which has worked very well. There are numerous examples of former Garda stations being used as spaces for citizens. I suggest the policy be extended to the buildings adjacent to St. Patrick's Hall in Corofin and that the Government enter into a partnership with the local community, which is tried and tested and has proved itself time and again in terms of its commitment and ability to get things done and finish the job. That type of partnership has worked well in many cases. I refer to sports capital grants and so on which are examples of government going into partnership with communities. Community halls throughout the country have received Leader funding amounting to millions of euro. That is an example of where government has gone into partnership and supported local communities. What is the difference in providing buildings? These buildings are derelict and open to being vandalised. They are depreciating in value but could add immense social value to the children, young people and the community of Corofin.

I thank the Senator for raising this important issue. The Government is committed to reforming property asset management in the public sector to ensure value to the taxpayer. The Commissioners of Public Works manage a large and diverse portfolio of property assets, including historic properties, on behalf of the State.

The stated policy for surplus properties is to identify if other State bodies, including Departments and the wider public sector, have a use for the property. If no State requirement is identified, the Office of Public Works, OPW, will consider disposing of the property on the open market to generate revenue for the Exchequer. If a decision is taken not to dispose of a particular property, the OPW will consider community involvement subject to the receipt of an appropriate business case, which is very important. This must indicate that the community or voluntary group has the means to insure, maintain and manage the property and that there is no cost to the Exchequer in the short, medium or long term. Where properties have been assigned, they have been generally to community councils that represent a broad range of community or voluntary organisations, with links to local SOLAS, community employment schemes and community work placement schemes, Tús.

Decisions taken by the OPW to license certain properties are based on the following principles: the benefit to the broader community in terms of local services, activities or employment-training opportunities to be achieved from the use of the property; savings to the State of maintenance, service and other costs; and ownership remaining with the State, with a re-entry clause at a time to be decided by the OPW. When retaining properties, the OPW continues to explore uses for them through State bodies and local authorities, in addition to considering community use.

The Senator has referred to the property in Corofin, County Clare, being made available to the local community. The property is composed of two large-semi detached houses on a site of three acres in the centre of the village of Corofin. The internal area of the two buildings is in the region of 220 sq. m and estimated to be 90 to 100 years old. The interior of the building is in poor condition. The roof which is of slate construction is in need of significant repair and the property requires a substantial investment to bring it up to modern standards. The property has been used as office accommodation for the National Parks and Wildlife Service.

The Senator will be interested to hear that the property is surplus to requirements and has been assessed in line with the disposal policy I have outlined. No alternative State use has been identified and the property is being prepared for disposal by public auction in the very near future. I hope the Senator will be satisfied with that answer as it outlines exactly what he wants to do with it.

When somebody goes to a bank manager for a loan, one of the criteria is his or her track record. The community in Corofin has a track record. I ask the Minister of State to revert to his colleague, the Minister of State, Deputy Simon Harris, and ask him if he could identify a senior official in the OPW who will liaise with the community in Corofin which I hope will be in a position to acquire that property at a nominal cost but which would be a significant investment in terms of the social life and culture and for the youth of north Clare.

The Senator's demands are somewhat stronger than I would have anticipated. The property is on the public market. In terms of it being used for the benefit of the community, it will be sold by public auction. That is the proper way to do it to get value for it. If the community is interested in it and can come up with a proposal and a bid, it will be given serious consideration.

Credit Union Regulation

I thank the Cathaoirleach for allowing me the opportunity to raise this important matter in Seanad Éireann. I welcome the Minister of State, Deputy Tom Hayes, who I trust is representing the Minister for Finance, Deputy Michael Noonan. I ask him to pass on to the Minister my concerns about this matter as it relates to credit unions.

The Minister of State comes from the constituency of Tipperary South and I am sure he is aware of the tremendous work being done by his local credit union in Cashel and others in towns in the area. I am aware of the credit unions in Mallow, Fermoy and Mitchelstown, among others, which have been at the core of the development, sustaining and maintenance of towns and communities.

We have to be careful about the way new regulations or laws will impact on the credit union movement. My question to the Minister of State and the Minister for Finance is as follows. If the Central Bank fully understands the ethos of the credit union movement, does it fully support the credit union movement or, as some would surmise, does it wish to restrict credit union expansion and see credit union amalgamations? Does it wish to impose further restrictions on credit unions? If, at the end of the year, the Minister signs the commencement orders to which I refer, it will have a very serious impact on the credit union movement throughout the country. Personal loans will be restricted to a significant degree from a time limit perspective and there will be a personal guarantee-type requirement for many car and house improvement loans. The credit union movement has been at the very core of that lending.

Is the Minister of State aware that if a person was fortunate enough to have sufficient funds to have a deposit of more than €100,000 in a credit union, that deposit would have to be reduced to a maximum of €100,000? If he or I won €1 million in the lotto in the morning, we would not be entitled or able to put that money in a credit union if the commencement orders are signed because there would be a maximum deposit limit of €100,000. There would be further stringent liquidity requirements placed on credit unions. Their ability to respond, act and generate economic activity in their local communities would be profoundly hampered.

Currently, from a national perspective, I am told there is €8 billion on deposit in credit unions which is not generating income. Part of the reason for this may be there was no demand for this money during the recession. However, because of the restrictions in the lending of that money, it is on deposit and not being put to use.

The credit union movement, through the Irish League of Credit Unions, has suggested this money could play a role in the development of social and community housing and made proposals to the Government in that regard. However, the money is restricted in its use, which is a matter of concern. The new commencement orders, if required, will further restrict the use of that money. If the €8 billion was being used in the economy, with a conservative multiplier effect of four, it would amount to the stimulation of €30 billion worth of economic activity. That sum could be used to support social and voluntary housing, as well as small enterprises and industries. Today in Brussels the European Commission will publish a paper on the concept of alternative forms of lending and financial support for small and medium-sized industry, while here at home we have a credit union movement with €8 billion on deposit, the use of which is restricted.

I ask the Minister of State to recognise that this is a genuine crisis as far as the credit union movement is concerned. The representative body, the Irish League of Credit Unions, has sought a meeting with the Minister on this issue. While I fully appreciate that the Minister is, by some distance, the busiest man in the entire apparatus of government, I ask that the Minister of State ask him to meet face to face with the credit unions to discuss the options. They have been seeking a meeting for some time and while they have received acknowledgements from the Department, no meeting has yet been facilitated. I believe the Minister of State at the Department of Finance, Deputy Simon Harris, may have met the Irish League of Credit Unions some months ago, but a meeting with the Minister himself is needed urgently before the year is out.

We need to support and strengthen the credit unions. I am concerned that there could be a view that we should slim down the credit unions, with money then being transferred into the banks. When credit union deposits are restricted, it is good news for the banks but bad news for the credit union movement. The Minister of State and I know of thousands of families across the country whose financial existence has depended on the intervention, common sense and practicality of the local credit union. Of the moneys provided for bad debts in the credit union system, very little was actually required. The vast majority of credit union loans are fully repaid, which proves that their lending policies have always been wise and locally managed. It is a model that has succeeded and the credit union movement is seriously concerned that the proposal to commence this legislation will have a negative impact on the movement and on community life in general.

I thank the Senator for raising this important matter. We are all aware of what credit unions have done for people throughout the country.

The Credit Union and Co-operation with Overseas Regulators Act 2012 was signed into law by the President of Ireland on 19 December 2012. Following on from this, an implementation plan put was put in place which was agreed by all stakeholders. It was agreed that such a plan was necessary for the coherent and timely commencement of all sections of the Act.

Credit unions are regulated and supervised by the Registrar of Credit Unions at the Central Bank who is the independent regulator for credit unions. Within her independent regulatory discretion, the registrar acts to support the prudential soundness of individual credit unions, to maintain sectoral stability and to protect the savings of credit union members. The role of the Minister for Finance is to ensure the legal framework for credit unions is appropriate for their effective operation and supervision.

The outstanding sections of the 2012 Act relate to savings, borrowing, lending, investments, reserves and liquidity. The Minister has been informed by the Central Bank that the draft regulations set out in consultation paper 88 will be introduced on commencement of the remaining sections of the 2012 Act at the end of December 2015. The regulations will replace and, where appropriate, amend a number of requirements in legislation and guidance. Additional requirements have also been included in the regulations, where necessary, to strengthen the regulatory framework.

The Minister is aware that a number of issues have been raised about the proposed regulations. The main issues are the introduction of a savings cap, the development of the credit union business model and the imposition of lending restrictions. Following consultation on the regulations, the Central Bank has introduced a number of changes. The introduction of a maximum individual member savings limit of €100,000 is to ensure the protection of members' savings and also to ensure credit union funding is sufficiently diversified and not dependent on a small number of members. Following consultation with the credit union sector and representative bodies, the Central Bank amended the transitional arrangement for the savings regulations to provide for credit unions that have individual member savings in excess of €100,000 at the commencement of the regulations to apply to the Central Bank to retain these savings where they can demonstrate that it is appropriate and prudent for them to do so. The Minister has been informed by the Registrar of Credit Unions that information on this matter and details of the application process will be available to credit unions before commencement of the regulations at the end of 2015.

The Central Bank is refining its application criteria for retention of savings in excess of €100,000 to include the following: the asset size of the credit union, with a minimum asset size of €10 million; the credit union's liquidity ratio, with a minimum liquidity ratio of 25%; and the level of additional reserves in excess of the minimum 10% level, taking account of the scale, complexity and risk to the credit union. Consideration will also be given to other supervisory information, including whether a credit union has a regulatory direction or a business restriction.

The Registry of Credit Unions intends to engage with the representative bodies and to invite comments from them prior to the finalisation of this application process. When the application process is finalised, the registry will provide an application form and explanatory notes in order to assist credit unions in making such an application. It is anticipated that application forms will be available during December 2015. The Central Bank envisages that applications will be accepted in the first quarter of 2016 and that applicant credit unions will be informed by the end of the second quarter of 2016 on the outcome of the process, which is well within the 12-month transitional period. Where a credit union has demonstrated that it meets the criteria, it will be in a position to retain members' savings in excess of €100,000 held at the commencement of the regulations. The Central Bank has also informed the Minister that it is committed to undertaking a review of the continued appropriateness of the savings limit once the impact of the restructuring process can be assessed. It is expected that this review will commence within three years of the introduction of the regulations. The Central Bank has agreed to provide regular updates to the Department of Finance on this matter.

The Central Bank has further informed the Minister that it is open to working with the credit union sector to ensure prudent and appropriate business development can be facilitated within the regulatory framework. As set out in the feedback statement on consultation paper 88, the Central Bank intends to invite interested parties to discuss business model development in the coming months. While to date the Central Bank has not received specific proposals on investment projects of a public nature, the bank has indicated that it is willing to consider such proposals, including the type of regulations that would be required to facilitate them.

It is worth noting that the credit union sector is being restructured on a voluntary, incentivised and time-bound basis. The Central Bank is taking a proactive approach to facilitating restructuring and working closely with the Credit Union Restructuring Board, ReBo, and individual credit unions on restructuring proposals. The Central Bank supports restructuring proposals that are financially sound, supported by proper risk and control frameworks and have clear leadership and vision for the future direction of the merged credit union. The important objective is to ensure restructuring achieves better outcomes for current and prospective members, enhances the financial soundness of credit unions and acts as an enabler for future growth and development, setting the sector up for a viable and successful future.

The Central Bank is carrying out a lending restriction review programme and has invited credit unions with lending restrictions to apply to have those restrictions reduced or lifted. The closing date for receipt of applications is today, 30 September 2015. The Minister has been informed that, of the credit unions that applied for a review of their lending restrictions, 45% have had them lifted. A number of applications received are still in the review process. Credit unions will be able to apply to the Central Bank for an extension of longer term lending limits. Approval will be subject to conditions set out by the Central Bank. The Minister for Finance has been consulted on the regulation, as was the Credit Union Advisory Committee, as required under section 84A of the Credit Union Act 1997. It is the Minister's intention to commence the remaining section of the 2012 Act by the end of 2015 in line with the introduction of the regulation. This will provide time for credit unions to ensure clarity in terms of what is required and make changes that are necessary.

The Government recognises the important role of credit unions as a volunteer co-operative movement in this country. While the Minister and the Central Bank have distinct roles in the credit union sector, they are both working to protect members' savings and maintain the financial stability and well-being of the credit union. As I have stated, the credit unions are working with the officials. I do not think the meeting should be held until much of the background work has been done, but I think the Minister will meet representatives of the credit union movement because it is, as the Senator stated, a huge part of what the country is and it is important in protecting families, in particular.

I thank the Minister of State for his response. I think he understands the significance and importance of the credit union movement. Is it possible to facilitate a meeting with the Minister for Finance? A meeting should take place. I know that there are many other matters to be dealt with by the Minister, but the meeting needs to take place before the orders are signed at the end of the year.

I will request that meeting.

We have to ensure the Minister and those who have been elected, who have a very clear understanding of the significance of credit unions, are very much in the driving seat of this legislation. I do not know what the Central Bank's agenda is for the long-term development of credit unions, but we need to state we want to see credit unions maintained, expanded and developed and working with their communities into the future. A meeting with the Minister is urgent and needs to happen before the end of the year because once the commencement orders are signed, the world will change for credit unions.

I will relate what the Senator has said to the Minister later today or tomorrow and I will request a meeting. It is right that the Minister should meet them.

Property Tax Administration

I welcome the Minister of State. Is he is the man who is taking this matter also?

Very good. The Minister of State is very welcome. My Commencement matter was addressed to the Minister for the Environment, Community and Local Government, Deputy Alan Kelly. I wish to ask him to devise a property tax credit scheme for homeowners who pay management charges. Is it in order for the Minister of State to take this matter?

The text of the Commencement matter mentioned the Minister for Finance.

That is fine. I do not mind which Minister-----

The Minister for Finance is mentioned at the top.

The Minister of Finance is the Minister indicated in the Senator's Commencement matter.

The Senator put it in her Commencement matter.

That is fine. I do not mind which Minister takes it, as long as it is in response to the issue.

The words "Minister for Finance" are written in it.

The Seanad Office may have changed it.

The Senator's motion states, "The need for the Minister for Finance...".

That is fine. Obviously, it is a budgetary issue, but property tax is within the remit of the Minister for the Environment, Community and Local Government. However, the request for a property tax credit scheme may rightly fall within the remit of the Minister for Finance. I will proceed.

I have written to the Minister for the Environment, Community and Local Government to ask him to devise a credit scheme against the local property tax for hard-pressed homeowners who are also paying management charges. Families and individuals are paying considerable management charges. In Galway, the charges range from €600 to €2,000. In a fairly rural area such as Lackagh, Turloughmore, where there are two estates, Carrickmore and Woodlands, the families pay €600 a year in management charges and feel duped because they also pay local property tax.

Does the Minister of State have a difficulty?

The local property tax was supposed to address some of the services such as road maintenance, lighting and grass cutting. None of that is being done and they are paying on the double. That is how they feel. To their great dismay, none of the basic services promised under the property tax legislation has been delivered. They feel they are paying on the double for a service they are not getting. I have mentioned Carrickmore and Woodlands in Lackagh. When one adds property tax and water charges to their bill, they are paying close to €1,000 per annum. I stress that this figure is at the lower end of charges compared with what others face. In Gleann na Rí, Murrough, Renmore people pay management charges of €2,068 for a two-bedroom apartment. When one piles the property tax and water charges on top of this, it causes a lot of financial hardship to these families. At the lower end of range - for example, in Lackagh, County Galway - people have reported to me that they have to put aside €20 a week to be able to afford their bills. Others feel very strongly that they have been deceived in that the purpose of paying local property tax was to cover these very same local services. There are families in Lackagh, Turloughmore, who heard that I was in the area and telephoned me on my way home to say they did not get to meet me but that they wanted to stress this issue and the hardship it was causing. On top of this, they are justifiably worried that with the increases in property value they will now face an increase in their property tax bill on the review date. They feel caught and fooled.

To add insult to injury, private estates that have applied to be taken in charge have also been let down, with Galway County Council replying to representatives of many of these local estates that it does not have the funding to take them in charge. At every level, including at Galway County Council, the local property tax has not delivered on the promises made. That is why I ask the Minister for the Environment, Community and Local Government, in co-operation with the Minister for Finance, to devise a property tax credit scheme on a sliding-scale basis against the local property tax for those who already pay for management charges for services that were expected to be covered by the local property tax. That it is a very fair and reasonable request. Why should one pay on the double? Why does the local property tax not pay for the services it promised at a local level? If it did, these homeowners would have an argument against their management companies to get credit from the management companies, but they cannot make that argument because they still need the management companies to provide the basic services that were supposed to be provided by way of the local property tax. I look forward to the Minister of State's reply.

There was confusion because I was not sure whether this was an issue for the Department of Finance or the Department of the Environment, Community and Local Government.

When the Senator tabled it, it was addressed to the Department of the Environment, Community and Local Government. The Seanad Office has received confirmation that the Department of Finance has responsibility in this area.

That is what I was going to say.

That is fine. It is the reply that I want.

The introduction of the local property tax is part of a broader approach to the taxation of property which aims to replace some of the revenues from transaction-based taxes which have proved to be an unstable source of Government revenue with an annual recurring property tax which international experience has shown to be a stable source of funding.

The Government decided that the local property tax should be centred on the principles of equity, transparency and simplicity and that a universal liability should apply to all owners of residential property with a limited number of exemptions. Limiting the exemptions available allows the rate to be kept to a minimum for those liable persons who do not qualify for an exemption. Senators will appreciate that reliefs and exemptions have costs which have to be paid for and their introduction must be considered only where there is a clear economic and social policy need to be addressed. Even with the limited number of exemptions available under the legislation, I understand exemptions were claimed in respect of 41,000 properties in 2014.

Properties in managed estates to which management fees apply will have been purchased by their owners in the knowledge that they would be taking on commitments to fund and partake in the management of the estate and that it was the intention that many such estates would not be taken in charge by local authorities, nor would it be appropriate for local authorities to do so. Management fees in these estates can include services such as refuse collection, maintenance of common areas and a sinking fund for certain repairs to the buildings, depending on circumstances. These are costs which home owners in other households, particularly in rural areas, must fund for their own properties. In certain circumstances, private estates will be taken in charge by local authorities in accordance with the relevant section of the Planning and Development Act 2000, as amended. This is a matter for the Minister for the Environment, Community and Local Government and the relevant local authorities.

Revenue from the local property tax accrues to local authorities and supports the provision of local services. Local authorities provide a broad range of services in the public realm, which benefit the wider community. The proper functioning of these services is important for the well-being of every community and household. They include fire and emergency services; road maintenance and cleaning; street lighting; spatial and development planning and other similar services; regulatory and inspection functions and business support services; and libraries, parks, and other recreation and cultural public amenities. The benefits of these services accrue to all members of society.

A requirement to pay management fees is not relevant in determining whether a property is subject to the local property tax. Accordingly, while those who are liable for management fees to property management companies may be exempt from local property tax for another reason or may be entitled to avail of a deferral arrangement under the provisions contained in the legislation, there is no specific exemption for the payment of management fees. There are no plans to change the basis of liability to the local property tax.

Senator Fidelma Healy Eames may ask a brief question.

Given my letter to the Department, I am disappointed with the Minister of State's reply. My point remains that those paying management charges and local property tax face a double whammy, given the expectation that some duplication of services would be involved. People who pay management charges are paying on the double because it was intended that revenue from the local property tax would be used to cover certain services. This is the basis on which I am seeking the introduction of a credit.

What about people living alone who do not have a management company?

While I take the Minister of State's point, I am speaking about hard-pressed people living in housing estates who believe they have no choice but to pay management charges. That is the basis on which I am making my argument. The Minister of State indicated that it was never intended that local authorities would take in charge many estates.

Does the Senator have a question?

What about estates in which residents have received letters from a local authority stating that it does not have sufficient funding to take an estate in charge, as occurred in the case of Galway County Council? In such circumstances, is it not the case that the local property tax has failed to serve its purpose?

The Senator has exceeded the time available to her.

I speak only of the portion of the local property tax about which promises were made, namely, the cross-over element. I am not referring to the abolition of the tax. I ask the Minister of State to respond.

One cannot have people in rural areas having to pay for services, while people in urban areas receive a Government subsidy because they pay a fee to a management company. That would be unfair and unjust, as the Senator will understand given that she comes from a rural area.

I am speaking about people who live in housing estates. I ask the Minister of State to stick to the point.

That is the point.

It is not the point I raised.

It is the point the Senator made when she stated that people living in housing estates who pay management fees to property companies should be exempt from paying the local property tax, while people in rural areas should pay the tax.

I stated they should be exempt from paying a portion of the local property tax. I am referring to areas where services overlap.

Please allow the Minister of State to continue, without interruption.

I will relay the points the Senator raises to the Minister for the Environment, Community and Local Government. However, my point regarding the treatment of people living in rural areas as opposed to people living in towns stands. Fairness is the issue.

I am seeking fairness.

The Senator referred to estates that have not been taken in charge by local authorities. This can only be done when funding becomes available. That is the position in my local authority in any case and I presume Galway County Council will take estates in hand when it has the money to do so. As the local authorities are collecting the local property tax, it is an issue for them.

That gives me at least a little hope.

Hospital Waiting Lists

I welcome the Minister of State and thank him for taking this Commencement matter. Since I was elected to Seanad Éireann, I have tabled Commencement or Adjournment matters on waiting times at University Hospital Waterford, formerly known as Waterford Regional Hospital, at least twice each year. Unfortunately, for the past seven years, under the Government and its predecessor, services and capacity at the hospital have been reduced. It has lost surgical theatre space, beds, wards and front-line staff, as have all other hospitals. These cuts have an impact on patient care. On each occasion that I raise this matter, I point out that waiting times at the hospital have increased since I last raised the issue. The most recent figures show that more than 7,000 patients have been waiting for longer than 12 months to be seen by a consultant in University Hospital Waterford and the south east. Sinn Féin did not set the benchmark that patients should be seen within 12 months. It was set by the Government, yet many patients must wait longer than 12 months. Rather than deal with this issue and face up to the fact that its policy has failed, the Minister simply moved the goalposts by changing the benchmark to 18 months.

I will give the Minister of State a flavour of how bad things have become at University Hospital Waterford despite the best efforts of managers, front-line staff and other health service employees. A newly built delivery suite is still not open or operational for funding, capacity and staffing reasons. In addition, people in the south east were promised a palliative care unit by previous Ministers for Health as far back as the period in which the Progressive Democrats Party was in government. Despite a number of announcements, the unit has not yet been built and people in Waterford must engage in fund-raising to pay to have the unit developed. The south east is the only region in the State that does not have a palliative care unit. The Government has also failed to deliver the promised 24-7 cardiology service.

University Hospital Waterford is experiencing serious capacity issues. The Government should be ashamed of its approach to the health service, especially in the light of a serious incident in Waterford last week when ambulances were diverted from taking patients to University Hospital Waterford to hospitals in Wexford and Kilkenny. Can the Minister of State honestly claim that it is acceptable in 2015, four years after the Government took office, that patients are being diverted from a regional hospital? Can he imagine circumstances in which patients would be diverted from any other regional hospital?

The Minister of State may not be equipped to answer all of the questions the Senator is raising.

That may be the case, but he can certainly refer them to the Minister for Health. The Minister of State came to the House to take this serious matter on behalf of the Minister.

The Minister for Health must be aware of what happened in Waterford last week. I am sure the Minister of State will accept that it is unacceptable that patients were diverted from a regional hospital because of capacity and funding issues. These are ambulances carrying sick patients which are told to bring those patients elsewhere. It is not good enough and it is all down to capacity. My questions for the Minister of State and the questions which were tabled are as follows. What are the current waiting times? What are the most current figures and has there been any improvement? Some patients in Waterford were diverted to Mullingar for treatment at a greater cost to the State because they could not be treated in Waterford. The Government is making a mockery of its own policy on patients being seen in their own areas where possible and within 12 months. It has tried to massage the figures as we get close to an election and is putting more pressure on patients. I am asking for the most up-to-date figures. Let us see if there has been any improvement since the last time I raised these issues some months ago.

I thank the Senator for raising this important matter. I represent south Tipperary which is part of the same hospital group as Waterford and want to be very fair in acknowledging that huge changes have taken place in the health service in the area. There is no magic wand in relation to funding and the reality is that change has taken place, notwithstanding the fact that staff are under a great deal of pressure. People are making the changes and there is no doubt that a better service is being delivered now than was provided some years ago.

The Government is committed to developing therapy services for children with a disability, including speech and language and occupational therapy and psychology services, in so far as possible within available resources. Speech and language therapy services in Waterford are provided by HSE teams in primary care and disability services as well as by the Brothers of Charity and the Central Remedial Clinic's regional service. There are 15 approved speech and language therapists in the Waterford service overall, with six therapists assigned to primary care services, five to the children's specialist disability services, while the remainder look after adults, mental health and other needs. In addition, the Central Remedial Clinic's regional service provides more specialised speech therapy for particular children with physical and sensory disability across the whole south-east region. Of the 15 speech and language therapy posts, two are temporarily vacant at present due to maternity leave. Local HSE management has prioritised the filling of these posts, but I understand there are difficulties nationally in filling such temporary positions. The Waterford service also includes ten additional occupational therapy posts. Five therapists are assigned to the paediatric disability services, two are working in the Central Remedial Clinic and the remaining three are employed in the CAMHS team. There are two psychology posts in disability services, one of which is on the autism diagnostic team. I understand this post is vacant and that efforts are ongoing to fill the position. The Senator may wish to note that a number of psychologists are also employed in Waterford's CAMHS and primary care services.

The Senator has also raised the issue of waiting times in Waterford for an assessment of needs. Part 2 of the Disability Act 2005 provides for an assessment of needs to be commenced within three months of receipt of an application and completed within a further three months. The HSE has advised that 28 assessment-of-needs applications under the Act were received in Waterford this year up to the end of June, all of which are being processed. A further 28 applications on hand for over six months are overdue for completion. While such delays are clearly not desirable, I stress that the assessment process under the Act can take place in parallel with any intervention deemed necessary and guidance to this effect has been issued to front-line staff. I understand there have been particular delays for children waiting to be assessed for occupational therapy arising from staff vacancies in the occupational therapy service. However, these vacancies have now been filled in respect of services for children aged up to six years of age and for children with autism which should help address this issue. I also understand 80 children in the Waterford area are on the HSE's waiting list for autism assessment or diagnosis. Priority is being given in the first instance to those children who commenced primary school in September 2015 and then to children who will be on the special educational needs organiser list for March 2016. In the meantime, HSE management in the Waterford area has agreed to outsource these assessments to an external provider. A procurement process to provide these services is under way and will be finalised shortly. It is expected that assessments will then commence in October 2015.

The HSE is involved in a major process of reforming and reconfiguring its services for children with disabilities through its progressing disability services for children and young people programme. Additional funding of €4 million has been allocated to the programme this year, equating to 120 new posts, including six additional therapy posts in Waterford. These include two additional speech and language therapists and two additional occupational therapists. With the outsourcing of assessments of needs, I am confident that these service reforms when fully implemented will help improve the waiting times which the Senator has highlighted today.

I apologise to the Minister of State, but I tabled a number of Commencement matters and there was a mix-up on my part. There was one on waiting times at the hospital and another on waiting times for children with disabilities. The latter is the one that was selected for today.

I welcome the six additional therapy posts. It is important that children with disabilities have access to early intervention and as much support as they can possibly get. That is certainly good news. There has also been some good news where there were delays in carrying out assessments due to the assessment team not being at full complement on foot of a number of posts which were not filled, including a senior child psychologist post. I understand the HSE is buying in those services and that all children will be assessed before the end of the year, which I welcome.

If he can, I ask the Minister of State to bring the first issue back to the Minister for Health which is the issue of what happened in University Hospital Waterford with ambulances being diverted. A senior consultant who works in the accident and emergency ward was on a Waterford local radio station this week and said it could happen again. As somebody who lives in the south east, I doubt that is something the Minister of State could stand over or would want to see happen. It is a very serious and urgent issue and I ask the Minister of State to bring it to the attention of the Minister for Health.

There are ongoing issues with the health service in the south east which we must all work to improve. I will certainly relate the matter to the Minister for Health. That instance in Waterford should certainly not be happening and the Minister's attitude would be the same as mine. We should work to ensure it will not happen again. I assure the Senator I will talk to the Minister about it.

Sitting suspended at 11.30 a.m. and resumed at 11.35 a.m.
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