I welcome the Minister of State, Deputy Niall Collins. I call Senator Carrigy. The Senator has four minutes.
Nithe i dtosach suíonna - Commencement Matters
Disability Services
I thank the Chair. I also welcome the Minister of State.
This matter relates to the current funding situation at St. Christopher's Services, which is a special school in Longford that was built by the people of Longford and has been funded by them for more than 40 years. The school is close to the hearts of all of us in Longford. However, there is currently a significant deficit of €250,000 per month. This will decrease to €140,000 per month when the 8% increase for section 39 organisations that was agreed prior to Christmas comes into play.
St. Christopher's Services is a section 39 organisation. A number of years ago, a significant number of staff left the school to work in the HSE as a result of the wage differences that existed. In recent months, to my understanding, there have been a number of issues around delays in pay. Staff have contacted my office about the matter. Issues around pension contributions not being forwarded to various companies and so forth came to the fore in recent weeks. I met with management and spoke to some people on the board of directors, etc., to discuss the issue. This organisation is at crisis point. When the wage increase comes into place, there will be a deficit of €140,000 per month. That amounts to almost €1.7 million by the end of the year.
In 2022, Government TDs in our county made promises of additional funding to cover wage increases. The board of directors made a decision to increase the wages of staff in light of the high numbers that were leaving the organisation. It did so on the basis that it was told that funding would be made available to cover the increase. That promise was made by a local TD in Longford. It is now early 2024. In recent months, staff have not been paid on time. In recent weeks, we have discovered that there is a significant financial shortage. The HSE had to come on board and front-load money from the end of the year to allow the school to get over this hump. The reality is that this will continue unless there is a change in the funding model for St. Christopher's Services, as a section 39 organisation, or unless it is taken over by the HSE.
This was caused by false truths told to staff and the board that money was in place. We now find out that it is not in place. I do not think that is acceptable. St. Christopher's Services has been close to the heart of every person in Longford for almost the past 50 years. It fundraised in every single corner of our community. That has stopped because of numerous issues such as that to which I refer. I am seeking the facts in respect of this matter. Staff are entitled to the facts. They were not told the facts; they had to find out for themselves that these issues had arisen. They were not told in advance. I am a public representative. As someone who represents the people of Longford, I need to know what the facts are because those involved are not being told the facts by another public representative in the county. They are being told lies. They were informed that money was put in place and that is not the case.
I ask Senator Carrigy to be careful when using the word "lies".
I apologise. There were mistruths. The facts need to be put out there. We must ensure that this organisation that looks after the vulnerable in our community is properly funded into the future and that it is placed on a firm footing. We need to ensure that we will not have a situation where a voluntary board of directors makes a decision to pay increased wages - and rightly so - to a significant number of staff in order to keep them on board to look after our vulnerable people to then be left in a situation where there is a significant deficit within the organisation as a result of that decision, which was based on information that turned out to be incorrect. I call on the Government to immediately put in place the funding, on a permanent basis, to cover these increased wages in order to ensure that we can keep the staff within St. Christopher's Services to look after the vulnerable in our community in Longford.
I thank Senator Carrigy for raising this important issue. St. Christopher's Services is a disability services provider founded in 1964 by parents and friends of disabled people in Longford. It is an independent legal entity governed by a board of directors. The organisation is funded by the HSE's Midlands Louth Meath community healthcare organisation, CHO, under section 39 of the Health Act, with minor funding from other sources. St. Christopher's Services currently provides day, residential and respite services in a number of locations across Longford. Services are provided on the basis of individualised need and are agreed in partnership with the HSE, service users, families and other voluntary providers to enable service users to reach their full potential. The organisation is an important provider of services, and the HSE is consistently assured of the quality of the services provided by the organisation.
Notwithstanding recent year-on-year increases in funding, it is acknowledged that the HSE, and the disability service providers it funds, are experiencing financial pressures. Demographic changes, increased complexity in service user need, regulatory compliance and recruitment challenges have all served to increase demand on available resources. With significant assistance from the HSE and the implementation of a cost-management programme, St. Christopher's Services had achieved a break-even financial position over recent years, with a small deficit in 2022.
However the HSE did not have advance warning of the scale of the financial difficulties which emerged at St. Christopher's in late 2023. This included a number of Revenue notices of attachment served on the HSE in relation to St. Christopher's. The HSE has assisted St. Christopher's to deal with these notices of attachment through a cash acceleration process. The cumulative cash advances as of 15 March 2024 are in the region of €3.5 million. This is a significant commitment of public funds by the HSE and as a result the CHO finance team undertook a due diligence process with the organisation with a draft report issued to the management of St. Christopher's. A response to this report is awaited. The HSE separately comissioned EY to review the due diligence process and the last number of years income and expenditure at St. Christopher's. The review identified weaknesses in internal financial controls and information deficits, with the gap between operational costs and available income due almost exclusively to the organisation's decision to increase its pay costs beyond available funding. HSE cash advancements have enabled the service to cover weekly and monthly payroll, to cover commitments to Revenue and to pay into pension schemes for employees. In addition, funding has been advanced to cover trade creditors and ensure that supply chain for service provision is maintained. On the basis of current knowledge, the anticipated cash deficit 2024 is expected to be €2.4 million. This will result in a cumulative deficit of €4.4 million at the end of 2024, with a funding level of approximately €14 million being provided by the HSE this year.
As to next steps, I know that, most importantly, the Minister, Deputy O’Gorman and the Minister of State, Deputy Rabbitte want to take this opportunity to reassure the many people who use these services and their families that their services will be protected and maintained. The HSE chief officer of CHO 8 is working intensively with the organisation to develop a pathway to financial stability. This includes exploring options for additional support for the board to enhance governance and oversight processes and mechanisms for further audits of financial systems and governance. The chief officer remains in close contact with senior members of the St. Christopher’s board in order to provide support and maintain communication channels during this challenging period.
The chief officer will be meeting with the board again in the coming days to clearly articulate the next steps required and to request defined cash flow information for the next six to eight weeks, to ensure that the HSE can respond to any changing needs accordingly. This proactive financial and practical support from the HSE will enable St. Christopher’s to continue its valuable service provision in the immediate term while a strategy is developed to address core sustainability issues. It is a key objective of the Government to ensure that appropriate funding is available to give stability to service providers for delivery of quality services for people with disabilities.
I thank the Minister and I welcome the commitment to ensure that there is going to be appropriate funding. Within the reply, there was a reference to the flow of information for the next six to eight weeks to ensure that the HSE can respond but we need to know for the next number of years; key to that we are looking at a deficit of €4.4 million in the organisation at the end of the year, a deficit of more than I thought of €2.4 million for the current year alone. That is not sustainable for an organisation going into the future, going from week to week. I see where the deficits have been caused exclusively by a decision made by the organisation; that is what is said in the reply here. However the information that was given to the people making that decision was that funding would be made available permanently going into the future and that funding would be put in place to pay those wages. Those commitments were made by members of the Government and Government parties, it was not made by me. It is not acceptable that these people have given their time voluntarily to look after the most vulnerable in our community, have made a decision based on those commitments and have now been left with a huge deficit and uncertainty for staff, service users and their families. We need a commitment and a guarantee going into the future.
Once again I thank the Senator for his contributions on this matter, the points he has made will be conveyed to both Ministers and the HSE. The Government has demonstrated its continuing commitment to people with disabilities with a record €2.9 billion being provided in 2024. This includes significant additional funding to help increase service capacity to deliver more for people with disabilities across the country. It is however recognised that several organisations are in a weakened financial state. The financial challenges facing the voluntary sector are highly complex, arising from both historical issues around funding arrangements as well as emerging challenges due to a changing profile of user need, higher safety and quality standards and general demographic pressures.
The Governement is working to progressively address these challenges and the disability capacity review was an important step in mapping out and acknowledging the levels of unmet need in the sector. The action plan for disability services sets out our ambition for reform and expansion of disability sevices over the next three years and this includes a significant policy service transformation initiative to ensure innovative person-centered solutions to meet these systemic challenges. In the meantime,cash advances have been made to cover the financial commitments and funding has been advanced to cover outstanding debts to ensure the service provision is maintained at St. Christopher's.
Childcare Services
I welcome the Minister. My question today relates to the State supports for the brilliant home visiting services that operate across many communities in Ireland. Across this country, approximately 170 people go into the homes of about 4,500 children each year and provide a vital parenting, learning and development support to parents and to children. Any of us with young children know the challenges of trying to figure out play, discipline and looking after the emotional needs of the parent and child. In households where there are additional challenges of disadvantage, poverty, domestic violence, homelessness, social isolation, special needs and other health issues, the early childhood visiting service has truly become a lifeline for many parents and their children. Oftentime the home visitor is the one trusted person from outside the home who is allowed in to help the parent navigate their way in life. Many of those home visitors are the bridge between public health nurses, Tusla, the maternity services and many other services. They often flag the need for access to other suppprts, particularly in the area of disability. In essence they are a vital part of the fabric of family supports in this country, they exist across about 40 sites in Ireland and yet those who are providing the service tell us that they can only really target about 1% of the eligible population, those who should be getting the service.
As I understand it Minister, there is there is no specific budget line for home visiting services within the Department of children, for the most part they are dependent on funding from Tusla and philanthropy and some from the HSE also. I believe the service in Kerry is the only service in the country that is fully State funded. We know that for the rest of the country, the Home Visiting Alliance tell us it is about 70% reliant on Tusla funding, 11% on HSE funding and 11% on philanthropy.
When I think about home visit services and the lack of recognition and, as I see it, respect for it, perhaps it is something to do with the unassuming way home visitors go about their work. Maybe the term 'home visitors' does not convery the sheer importance of the work that they do but to my mind it seems that this work is largely invisible to the State and that needs to change because home visiting is an essential part of the support network around families in this country. We know that in the heart of Dublin's north inner city, the early learning initiative is run out of the National College of Ireland and they do incredible work there under the stewardship of Dr. Josephine Bleach and her team, in terms of setting the standard for training and employing home visitors. They have become a national centre of excellence in providing outreach training to many of the sites around the country and indeed providing research on the little data that is available on home visiting services in the community.
It is not sustainable, nor is it right, that to train and pay home visitors, they had to depend on philanthropy for up to 40% of their funding. This should be a State-funded service, full stop. We know from the 2023 feasibility study produced by the Home Visiting Alliance that there were a number of very clear recommendations to the State. Number one, on funding, is that it is not sufficiently funded at the moment. There needs to be a clear line of funding and it needs to be sustainable and multi-annual. Number two related to recognition. There is a significant issue with regard to professionalisation of the sector. The early learning initiative was providing FETAC level 5 training to those who wanted to become home visitors. Because of a change in the qualification system last year, we are now seeing that it is near impossible to get the requirements to meet those qualifications because it requires training within crèches as opposed to within the actual home visiting service. The last item relates to funding research within the sector.
The First 5 strategy sets out clearly that there needs to be a national approach to home visiting in this country. The First 5 strategy is a number of years old at this stage and we have yet to see that national approach. I want to hear from the Government its plans in this area.
I thank Senator Sherlock for raising this important issue and for offering the opportunity to respond.
Home visiting programmes provide support and guidance to expecting parents and parents of babies and young children. Home visiting is a prevention and early intervention strategy used to support parents to promote infant and child health, foster educational development and school readiness, and help prevent child abuse and neglect. Different models of home visiting exist. Home visiting programmes for parents of babies and young children are funded by the HSE and Tusla in some areas in Ireland. Programmes available in areas of Ireland include Preparing for Life, Lifestart, Parent Child Plus, Infant Mental Health and Community Mothers. The duration of each home visiting programme varies although most are provided for a period of two years or longer. The frequency of visits also varies from twice weekly to monthly visits.
Home visiting services are developed in an ad hoc manner in Ireland, driven by local needs, resources and priorities rather than informed by a national approach. At present, some areas of the country have no home visiting programme available while other areas provide universal access or targeted access to a home visiting programme. The First 5 strategy for babies, young children and their families includes an action to agree an approach to home visiting services across a continuum of need, building on the current public health nurse home visitation programme and having regard to Irish evidence on the implementation of prevention and early intervention initiatives.
The Minister, Deputy O'Gorman's Department has undertaken a national review of home visiting services in Ireland, which is due to be completed in quarter 2 of this year. The project was undertaken by the centre for mental health and community research based in the National University of Ireland, Maynooth. The study examines the resources, activity levels, geographical coverage and outcomes associated with home visiting programmes in Ireland. It considers evidence of the effectiveness and implementation of home visiting programmes in Ireland and across the world. Researchers shadowed home visitors and consulted parents to explore the demand and preferences for different types of home visiting services. Researchers also consulted key stakeholders to identify, assess and agree options for a standardised approach in Ireland to home visiting service provision.
Most of the Tusla budget that is used to fund home visiting programmes is from Tusla's general allocation from the Minister, Deputy O'Gorman's Department, which is commissioned, as appropriate, at the local area level. However, up to €10 million has been ring-fenced for home visiting programmes between 2024 and 2029.
The Government published an action plan for survivors and former residents of mother and baby and county home institutions on 16 November 2021. The aim of the action plan is to support the implementation of the 22 commitments made by the Government in January 2021 to respond to the priority needs and concerns of those who spent time in these institutions. Under action 18, the children's fund, the Government has committed to honour the memory of the children who died in mother and baby homes through the creation of a specific fund which supports children who experience disadvantage in the present day. It is proposed that the children's fund will be used to support the establishment of a new national home visiting programme within Tusla. Accordingly, over the next five years, Tusla will receive up to €10 million in funding to develop this programme. The aim of the national home visiting programme will be to co-ordinate, provide direction, and collate evidence and data to inform the future development of the sustainable national home visiting service. The focus initially will be on Traveller parents and lone parents, as per the instruction of the expert panel established by the Department of Children, Equality, Disability, Integration and Youth, which provides advice on how the children's fund might most effectively be used. Specifically, in 2024, funding will be used to recruit a national home visiting manager and a data and information officer for the programme. The setting up of the Tusla national home visiting programme will allow for an increased number of children and families to benefit from such a service.
I welcome the establishment of the national home visiting programme. I am struck, however, by the fact the research into home visiting services was commissioned in 2022 and was supposed to be completed in 2023. We hear now it is going to be completed this year. There is only one year left of this Government. I very much hope the outcomes from that research will be acted upon this year.
I am concerned about the full understanding within the Department about home visiting. The Minister of State talked at the start of his response about home visiting services and the current public health nurse home visitation programme. They are entirely separate from what I am talking about here. Home visiting services are not provided by public health nurses. They are home visitors. It is a completely distinct service.
I welcome all supports to those who were in mother and baby and county home institutions, but that is not relevant to what we are talking about here. It is a pity the Department is purposely confusing supports to the families we are talking about.
Home visiting programmes are recognised as having positive outcomes for families who receive them. The intention of the Minister, Deputy O'Gorman's Department with the additional funding from the children's fund is that an increased number of children and families will benefit from such a service. As mentioned earlier, Traveller and lone parent families will initially be targeted. Based on the evidence gathered, a co-ordinated and prioritised national approach can then be implemented with a view to expanding access to regions and cohorts that currently do not have access to home visiting services. This funding will have a real positive impact for children and families who are vulnerable and experience disadvantage in Ireland. Additionally, families can avail of universal and targeted parenting support programmes available in their areas, provided by Tusla, the HSE and their partners in the community and voluntary sectors. All of these services are aimed at supporting parents and carers to be more confident and capable in their parenting role, helping to achieve the best outcomes for children and families.
School Accommodation
I thank the Cathaoirleach for taking this Commencement matter. I welcome the Minister of State, Deputy Collins, to the House.
Castlebar Educate Together National School was started by a group of people in 2015. They organised an old national school, the Burren National School, but the parents rejected this. It was not suitable. It was outside Castlebar and did not have what was required for a school. The school was established in 2016, which is not that long ago, and opened in temporary accommodation in Cavendish Lane, Castlebar, with 12 students in 2016.
In 2017, Marsh House, an old urban district council building, where meetings were held and which had the Castlebar town council offices, was renovated, and the school moved there with 32 pupils. It had three half-size classrooms, the largest being only 33 sq. m. That was not really suitable either.
In 2018, a half-stream enrolment cap prevented more than 13 pupils from starting in junior infants. That was rejected, so the school grew to 55 pupils in 2018. In 2019, after a year of uncertainty around the half-stream issue, 11 junior infants enrolled. The school had grown to 62 pupils. In 2020, planning permission for Marsh House stipulated a maximum capacity of 68 pupils was a requirement. Therefore, only six junior infants could be enrolled in 2020.
In 2021, additional accommodation was granted and a new classroom for 20 junior infants started in the old hat factory where hats used to be made in Castlebar. That is not suitable for a school either. The school became a split campus in 2021. The total number enrolled in 2021 went up to 85 pupils. In 2022, 24 junior infants started in the hat factory and the Minister of State’s colleague, the Minister, Deputy Foley, on a visit to Castlebar in September 2022, gave an undertaking that they would get a permanent school.
Pupils were based across two sites, with a total enrolment of 116 pupils in 2022. In 2023, the board of management compiled a file of potential brownfield and greenfield sites in the Castlebar area, as requested by the Minister on her visit in 2022. That was then sent to the Minister's office. Emergency accommodation for a classroom in Cavendish Lane was sourced as they had run out of classroom space in Marsh House, as well as at the old hat factory. The school is now based across three campuses and it has 141 pupils.
I am raising this issue on behalf of the board of management, the teachers, the parents, who are very responsible, and the students. The school has a very good board of management and it is very well run but the Minister of State must appreciate that it is very difficult to run a national school over three campuses. That is not suitable at all but it has grown significantly from 2016 when it was established to this year when it now has 141 pupils. It is a large national school but it is difficult to run it over three campuses. I therefore urge the Minister of State to outline the necessary steps that are required immediately and I look forward to his response.
I am taking this Commencement matter on behalf of our colleague, the Minister for Education, Deputy Foley, who is in the midlands this morning. The Department would like to thank the Senator for raising this matter, which provides me with an opportunity to outline the position on Castlebar Educate Together National School.
I would like to first state to the Senator that officials in the Department of Education are in regular contact with Educate Together regarding the current accommodation requirements for the school in question. I can confirm that the school was established as a four-class school under the terms of the divestment process. Nevertheless, the Department has agreed that the permanent accommodation solution will provide for eight classrooms and Department officials are working to put this solution in place as soon as possible. However, in the interim, and in line with agreed terms, the school has been instructed to take cognisance of its existing accommodation capacity when managing its enrolments. The current enrolment of the school is 134 pupils. While the Department is working to put a solution in place for the long-term needs of the school, additional accommodation has been provided for the school in recent years. In July 2022, the school was approved to proceed with rental of accommodation at a premises at Newport Road, which provided two additional mainstream classrooms. The school received approval to negotiate further with the owners of the premises for additional space to include one special education tuition room, a staff room and a toilet. It was necessary to obtain planning permission for this work, and this has since been obtained.
The Department is now prepared to provide capital funding for the necessary reconfiguration of this additional space for use by the school. I can also confirm that the Department is currently engaging in a site identification process for a long-term solution here. The Senator will appreciate that site identification and acquisition is a process that may take a significant period of time but I assure the Senator that this is a priority for the Department of Education.
The Senator will be aware that the main focus of the Department's resources over the last decade and for the coming period is on the provision of additional capacity to cater for increasing demographics, particularly at post-primary level, and for the provision to meet the needs of children with special educational needs. The Senator will appreciate that the immediate priority of the Department is to provide the required new and replacement school places each year to ensure that every child has a school place, including the thousands of children newly arrived in this country.
The Department of Education has successfully supported and facilitated the enrolment of more than 18,000 children from Ukraine in our primary and post-primary schools. Under Project Ireland 2040, the education sector will receive a total of approximately €4.4 billion in capital investment over the period 2021 to 2025. There will be a rolling five-year funding envelope, which will be updated annually for the period from 2026 to 2030 within the Government's overall NDP funding envelope of €136 billion in Exchequer capital. There is €165 billion in total capital, including the non-Exchequer funding, that will facilitate building modern and sustainable school infrastructure.
This significant investment allows us to move forward with certainty on our ambitious plans and deliver high-quality building projects with a real focus on sustainability for school communities across Ireland. The Department will continue to work to ensure that the capital investment in our schools is targeted in the most efficient and effective way to support schools in meeting the education needs of their students and communities.
I thank the Minister of State for outlining what the Department is doing. I know he can appreciate the difficulty that the school faces in operating over a number of campuses. It is quite difficult, particularly with small kids. I ask for a site to be identified immediately. I am sure that there is some fundraising that the school will have to do as well. It needs to be able to get on with that work, so it needs certainty. I urge the Department to identify a site immediately and get this in train. I hope the Minister of State will take this issue back to his senior colleague.
I once again thank the Senator for giving me an opportunity to outline the position to the House on Castlebar Educate Together National School. As I have outlined, the Department is engaging with Educate Together on the accommodation that is required in the short, medium and long term. I can assure the Senator that the Department is working to provide a long-term accommodation solution for the school in question. Our officials remain available to work with the school authorities in that regard.
Recycling Policy
The Minister of State is very welcome, it is good to see him. As he knows, the return scheme was launched with much fanfare at the beginning of February. It is a scheme that was long overdue and was very much welcome. According to the return websites, the aims of the new recycling scheme are to achieve EU recycling targets protect our environment, reduce litter and waste and play a key role as a circular economy initiative. This is all very laudable. However, one additional result of this scheme, as currently configured, is to land those with disabilities with an unfair and regressive additional tax. I cannot for the life of me understand how this Government could have gone ahead with such a scheme without giving consideration to issues of disability.
If people are unable to travel to return these bottles to one of the big supermarkets that have installed these new vending machines, they are still liable to pay the tax on the bottle. The liability does not just apply to those with disabilities, but also to those without access to their own transport, especially those who are elderly and who no longer drive. I met a number of people when canvassing in Limerick last week who raised the unfairness of this new tax as it applies to them. I was particularly struck by the number of elderly people in rural areas who live miles away from these supermarkets and typically do their shopping in the local villages where they live.
I know the Government is going to say that the long-term plan is to install these machines in villages but, in the meantime, who is going to refund those on limited incomes who are currently funding the scheme because they are not able to return the bottles and cans? These people simply cannot access these return banks. When people are on a limited income consisting of a disability payment or a pension, they should not be taxed in this way, as they have no means of returning these bottles and cans.
We are fortunate to have inveterate campaigner for the rights of disabled, Leigh Gath, with us in the Chamber here today. Leigh lives in Pallaskenry. As the Minister of State will know, Pallaskenry has not had any supply of mainline water for well over a year now so everyone has to buy bottles. Leigh has been in contact with the office of the Minister of State, Deputy Ossian Smyth, and had been reassured that disability groups have been consulted on the drawing up of the scheme. She subsequently followed up with the Irish Wheelchair Association, which said it got one call saying it would have a follow-up, but that never happened. She also contacted the Disability Federation of Ireland, which had received no contact whatsoever.
I find this extraordinary. We urgently need an explanation of this issue, especially because, if you are a wheelchair user, you are physically unable to reach up to the vending slots in these machines because they are placed too high up from the ground. That is an absolutely critical point.
In correspondence with the office of the Minister of State, Deputy Smyth, Ms Gath was told that larger supermarket groups had been consulted and had agreed to collect the empties. However, once notified of this, Tesco sent an email to all of its online customers informing them that this would not be happening. How could it happen? A monetary amount would have to be given by the driver to the homeowner as the homeowner would still not be able to get to the supermarket to get his or her refund. This would mean drivers having to carry cash, putting them at risk.
As Ireland is one of the last countries in the EU to have introduced these machines, you would have thought that we would have learnt from best practice. However, it is apparent that we have not. It is not difficult to find best practice. I have in my hand a document from Denmark published in March 2001, 23 years ago, setting out how best to cater for people with disabilities when setting up schemes such as this. The fact of the matter is that neither the research nor the consultation were done. No consideration was given to people with disabilities before this scheme was introduced. It is not just a matter of great embarrassment for the Minister of State's Government, but also a matter of shame.
I want to hear an urgent response from the Minister of State as to how this issue will be tackled. The current situation cannot be allowed to stand. There are possibilities through, for example, the creative use of Revenue and direct reimbursement. Local schemes to collect these bottles could be supported. However, there is nothing in place right now. There is best practice elsewhere. I can point to Germany or Sweden. I look forward to the Minister of State's response.
The deposit return scheme, DRS, was introduced to incentivise more people to recycle plastic bottles and cans to help deliver on our ambitious EU targets for the recycling of these products. Under the single-use plastics directive, we are obliged to recycle 90% of our plastic bottles by 2029 with an interim target of 77% by the end of next year. The deposit return scheme will increase the quantity of bottles and cans being collected for recycling and will result in less going to landfill or incineration or becoming litter. The deposit return scheme was in development for several years prior to going live in February of this year. To inform the design of the scheme, the Department undertook two public consultations. The first was in October 2020 and the second was in April 2021. These provided all parties with an opportunity to submit their views to the Department on how the deposit return scheme should operate. Since its appointment as the deposit return scheme operator in July 2022, Re-Turn has also consulted widely with stakeholders to help them to prepare for the introduction of the scheme.
The scheme is a national infrastructure project which operates primarily on a return-to-retail model. Under the DRS regulations, retailers are required to charge customers a deposit for each bottle sold, to take back empty containers and to refund the deposit to customers. Retailers are also required to ensure that the take-back facility they provide on their premises is accessible for anyone wishing to return empty containers.
The DRS represents one of the biggest changes in consumer behaviour in decades. Consumer participation and inclusivity for all consumers is essential for a successful deposit return scheme. An extensive national communications campaign is under way to ensure that every member of the public is aware of and understands what the scheme is and how it operates. Individuals who have difficulties in returning bottles and cans to their local retailer should contact Re-turn directly. It will work with the local retail community to find the solution that works best for all involved. Re-Turn is committed to ensuring that all locations are accessible to consumers and is working closely with retailers to embed best practice, ensuring the system nationally is optimised as regards convenience and accessibility for all.
I know that the Minister of State is in the invidious position of reading out a statement and that this is not his direct responsibility but that statement is honestly appalling. The fact of the matter is that no one in a wheelchair can access these machines. That is a gaping chasm as a result of a failure to consult people with disabilities. The line the Minister of State has been given, that Re-Turn will work directly with the local retail community to find a solution, is nonsense. That is just not happening. There is nothing in place for people with disabilities. I have not even mentioned the fact that no consideration was given to people who are blind or visually impaired in this scheme. The fact of the matter is that best practice is there across Europe for anyone to see. I showed the Minister of State a document that is 23 years old at this point in time and would have told this Government how to go about this properly. It took Leigh Gath approximately ten minutes to find that document. This is a serious failure by the Government. I want to hear a response from the Minister of State. If possible, will he take two minutes at the end of these Commencement matters to speak to Leigh Gath, who has taken the time to come up from Pallaskenry this morning to raise this issue directly with the Government? I would really welcome it if he could do that.
I have no problem speaking to Leigh Gath. As the Senator will know, she is a constituent of mine. I have spoken to her regularly previously. She did not contact me about this matter. I would be delighted to speak to her afterwards. Re-Turn continues to engage widely with all stakeholders and has committed to reviewing accessibility practices considering the needs of customers. There will be a review and this will include work with the National Disability Authority, which is supporting Re-Turn in the establishment of a consultative group to ensure the concerns of all parties, particularly those who have experienced difficulties in accessing the DRS and in returning bottles and cans, can be heard and addressed. It has been noticed and is going to be worked on. I understand that Re-Turn intends to convene the first meeting of this forum later in March and has invited a number of disability organisations to assist in a review of the scheme's infrastructure. Both the Department and Re-Turn will monitor the issue as the scheme builds momentum in the coming months.
That should have happened years before the scheme was introduced but I thank the Minister of State for his response.
Fuel Prices
The Minister of State is very welcome to the House this morning. There are 390 filling stations located along the Border in counties Monaghan, Cavan, Leitrim, Louth and Donegal. All of them will suffer financially as the Government restores the full rate of excise duty on fuel on this side of the Border while the UK Government has decided to postpone its increase due to cost-of-living pressures. Filling stations on this side of the Border will pass on the increase, adding 4 cent to the price of a litre of petrol and 3 cent to the price of a litre of diesel from 1 April. Worse still, another increase in excise duty of 5 cent on petrol and 4 cent on diesel is expected in August and further increases are on their way within the next 12 months. Ultimately, this will mean that drivers in the Republic will have to pay 15 cent more for petrol and 12 cent more for diesel, leading to us having the highest fuel prices in Europe.
This will unfortunately lead to Border tourism with regard to fuel. Drivers will simply cross the Border to purchase cheaper fuel and this will have two direct impacts. First, forecourt operators in Monaghan, Cavan and other Border counties will see a significant reduction in demand for their product. It is estimated that the difference in fuel price will be so wide that many forecourts will be in danger of closing altogether. As sales plunge, so too does the excise duty collected, potentially leading to a reduction in State income as opposed to an increase. I urge the Minister of Finance to revisit this decision and to postpone the increase in excise duty in light of a similar action taken by his counterpart in the UK. Consumer advocates also point out that higher fuel prices have an effect on lots of other goods and services, thereby pushing up the cost of living.
They are looking for a postponement of the hikes in excise duty due in April and August until after the next budget. Such a decision would, as I outlined, be similar to one made by the UK Chancellor of the Exchequer, Jeremy Hunt, who has postponed that decision for 12 months.
The Minister has already stated that the Government must strike the appropriate balance between providing support on the one hand and avoiding cyclical inflationary trends on the other, and I understand that fully. Perhaps the call from the industry and others for the establishment by the Department of Finance of an expert group to review the taxation of energy for transport and heating makes good sense in light of the fact we have the target of net zero emissions by 2050.
Border retailers are once again finding themselves on the front line of price increases and that must be acknowledged. I hope the Minister of State will have some positive news for me in his response.
I thank the Senator for raising this issue for discussion. The Government is acutely aware that increased energy prices have posed significant challenges to households and firms. The drivers of inflation are global in nature and, accordingly, it is not possible for any one government to fully absorb the costs. Therefore, Government policy is focused on temporary and targeted measures aimed at the most vulnerable. The policy response has also been designed to avoid generating second-round effects that could lead to an inflationary spiral. The Government has responded swiftly and decisively multiple times to help offset the most severe impacts of inflation, with particular focus on protecting the most vulnerable. Careful management of the public finances allowed the Government to provide €12 billion in direct assistance to help to deal with the cost-of-living pressures between 2022 and 2023. Budget 2024 built further on those measures and provided a once-off cost-of-living package of measures worth €2.7 billion. It struck the right balance between providing support for our economy and society while not unduly adding to inflation.
The specific issue raised by Senator Gallagher today relates to the temporary excise rate reductions on petrol and diesel, which currently amount to 8 cent on petrol and 6 cent on diesel, and the partial restoration of these reductions from 1 April. Initially in March 2022, in light of the acute impact rising prices were having on households and businesses, the Government provided for excise rate reductions in the order of 21 cent, 16 cent and 5.4 cent per litre on petrol, diesel and marked gas oil, respectively. These temporary reductions were due to end on 31 August 2022, but following a review and the monitoring of fuel prices, they were extended until February 2023, with a phased restoration beginning in June 2023 followed by a second restoration in September 2023. The final restoration of excise rates was due to take place on 31 October 2023, but in budget 2024, the Minister for Finance provided for a further extension until March 2024, with a phased restoration legislated to occur in two final stages on 1 April 2024 and 1 August 2024.
The Government, while recognising that households and businesses continue to face challenges, believes it must strike the appropriate balance between providing support and avoiding fuelling cyclical inflationary trends. Consequently, it does not propose to defer the already legislated for increases of 4 cent per litre for petrol and 3 cent per litre for diesel due on 1 April.
I also note that a range of additional supports are available to the small and medium-sized business sector. The Department of Enterprise, Trade and Employment provides a range of tailored supports, including access to finance, management, development, mentoring supports, business development programmes, market supports and trade promotion. In addition, an increased cost of business scheme was provided in budget 2024. The scheme is a one-off grant available to all firms to pay commercial rates that will benefit up to 143,000 SMEs at an overall cost to the Exchequer of €257 million. Some 95% of all small and medium-sized businesses operating directly within premises that are commercially rateable by local authorities should be eligible for this support.
Another significant initiative introduced by the Government to help small businesses is the tax debt warehousing scheme. It offered valuable and practical liquidity support to businesses during the Covid pandemic. Today, it continues to support businesses as they recover from the impacts of the pandemic and the cost-of-living crisis. It does so by assisting businesses with their cashflow during difficult trading periods, allowing them to continue trading. Revenue has confirmed that it is offering additional flexibility to customers with warehoused debt. This includes the possibility to extend, on a case-by-case basis, the duration of payment arrangements beyond the typical three to five years and an initial downpayment not always being required. Additional flexibility during the payment term may also be available and will be tailored to the individual circumstances of the taxpayer.
It should be noted that the Government will consider its position on the 1 August excise restorations on petrol and diesel of 4 cent and 3 cent, respectively, nearer the time of such restoration.
I thank the Minister of State for the response. It is vital the Government gets the impact this would have on Border filling stations, many of which are located in my own county of Cavan as well as in Donegal, Leitrim and Louth. This will have a devastating effect. While I am disappointed the Government is proceeding with the increase on 1 April, I take some solace from the fact the August increase may not happen. I earnestly implore the Minister of State to do all he can to ensure the August increase does not happen. The net result of the increase will be that many businesses - fuel stations - along the Border will close. We cannot allow that to happen because many of them are employers and many employers, particularly small businesses, are going through a difficult time at the moment, as I have no doubt the Minister of State is aware, due to the increased costs they have to incur as a result of Government legislation on pension auto-enrolment and the increase in the minimum wage. Those changes have impacts on employers' PRSI. Sick leave and other employee entitlements are welcome but have an adverse effect on small businesses and the Government needs to be conscious of that.
That is a point well made.
The Government recognises that the decision by the UK Government not to restore its excise rates means that the differential for petrol, in particular, will increase between Northern Ireland and this jurisdiction. The Senator will be aware that Ireland and Northern Ireland operate significantly different tax regimes. For example, the VAT rate in the UK is 20% and the UK does not have a carbon tax. Furthermore, Ireland operates a diesel rebate scheme for essential road users and there is a VAT reclaim on diesel for commercial uses. These factors all impact a dynamic and variable effective fuel price, especially for businesses, which will likely be quite different in a pump price comparison. In addition, it is important to note that the national average prices have eased considerably from highs of more than €2 per litre in 2022. As per the Central Statistics Office consumer price index, the average national retail prices of auto diesel and petrol have decreased from approximately €1.85 per litre in October 2023 to approximately €1.72 per litre for diesel and €1.71 for petrol in February 2024. More recently, the European Commission weekly oil bulletin shows that the national average price as of 18 March 2024 was approximately €1.73 for petrol and €1.74 for auto diesel. I will take on board the concerns the Senator has raised and convey them to the Minister for Finance.
I thank the Senator for an argument well made.
Health Strategies
The Minister of State is very welcome. To our shame in Ireland, we have the lowest rates of breastfeeding in Europe. We have one of the lowest rates of breastfeeding in the world, in fact. A recent study by The Lancet showed that 800,000 babies per year and 20,000 women per year die as a result of not breastfeeding. This should be a shock for us in a First World country.
We know that measures have been taken in Ireland. We have put in place more lactation consultants and allow for peer-to-peer support on the ground, but much more needs to be done.
As a result of all of that, we in the women's caucus set up a committee on breast-feeding. I am the chair of that committee. Yesterday, I was delighted that we had members from UNICEF, Bainne Beatha, and experts from TU Dublin come in to us to present a World Breastfeeding Trends Initiative report. I was also delighted that the Minister, Deputy McConalogue, came and proudly put up a picture of himself on social media with a sign saying he supports breast-feeding in Ireland. He is the Minister for Agriculture, Food and the Marine, and it is a very good step in the right direction that we see this is being taken seriously by the Government.
Last year we introduced the Online Safety and Media Regulation Act. I was thrilled that the Minister, Deputy Catherine Martin, took on board a request by ourselves to put into the legislation a restriction on breast-milk substitutes. Why is that important? We know that when there is unlimited marketing of breast-milk substitutes - baby milk formula - breast-feeding rates go down. We also know that we have a heavily marketed industry here in Ireland. The online marketing of breast-milk substitutes is targeted at women of a particular age who might be struggling in the middle of the night with breast-feeding a small infant. If they go to the Internet for support and type in that they are looking for breast-feeding support, what pops up is an ad for formula milk. There is no doubt that when you do not have support it is easier to think that this might be the solution, but by having this heavily marketed product we are letting down the women who want to breast-feed.
We should not restrict access to formula milk at all because it is the choice of individual families what they want to feed their children, but we should take note of the fact that more than 60% of women want to breast-feed. They go into hospital wanting to breast-feed and yet the numbers who actually do it are half of that. We are letting people down when they have made a conscious decision and the State does not support them. One thing that we can do is to follow on from the Online Safety and Media Regulation Act and become a co-sponsor of the published WHO guidance on regulatory measures aimed at restricting digital marketing of breast-milk substitutes. Brazil, for instance, is willing to sponsor it. It would send a really strong signal if Ireland is a co-sponsor. This resolution is coming before the World Health Assembly in May 2024. I would like to hear the Department is supporting that, in line with the support yesterday from the Minister, Deputy McConalogue, and the Government's support for measures such as lactation consultants. We need a lot more than lactation consultants. We also need more midwives who have more time to spend with women. That is what I hear from both the health professionals and the women who are often left without that support.
I thank Senator O'Reilly for raising this very important issue. Encouraging mothers to breast-feed is a priority, both for the Department of Health and for the HSE. National health policy, including the Healthy Ireland framework, the Healthy Ireland strategic action plan, the national maternity strategy, the obesity policy and action plan, and the national cancer strategy, emphasises the importance of supporting mothers who breast-feed, as well as taking action to increase breast-feeding rates in Ireland.
The HSE's Breastfeeding in a Healthy Ireland action plan is the framework for progressing supports for breast-feeding in Ireland. The Department of Health works closely with the HSE national breast-feeding co-ordinator, who has responsibility for the implementation of the HSE's breast-feeding action plan from 2016 to 2021, which has been extended to 2025. One key action of the action plan is to strengthen compliance with the WHO's international code of marketing of breast-milk substitutes and subsequent WHA resolutions. The HSE implemented its national policy to support compliance with the code in 2021. The marketing of breast-milk substitutes and new standards for infant feeding in maternity services require that there is no advertising of formula milk, teats, bottles and soothers in any part of the maternity services and that staff take active measures to protect themselves and parents by not participating in formula industry-sponsored training and events. Further measures to improve and monitor compliance with the WHO code are necessary across Departments and in partnership with cross-sectoral agencies and, as such, advertising and marketing through media falls under the remit of the Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media.
Coimisiún na Meán was established in March 2023 further to the provisions of the Online Safety and Media Regulation Act 2022. This Act amended the Broadcasting Act 2009 to establish Coimisiún na Mean and dissolve the Broadcasting Authority of Ireland, BAI. In addition to undertaking the functions of the BAI as the regulator for broadcasting in Ireland, Coimisiún na Meán is to establish a regulatory framework for online safety, update the regulation of television broadcasting and audiovisual on-demand services, and transpose the revised audiovisual media services directive into Irish law. Officials from the Department of Health have contributed to the public consultation on the draft safety code and have met with officials from an coimisiún to discuss implementing codes that would restrict the marketing of high-fat, high-sugar and high-salt foods and beverages to children, and that includes infant formula.
The WHO guidance on regulatory measures aimed at restricting digital marketing of breast-milk substitutes highlights that digital environments are fast becoming the predominant source of exposure to the promotion of breast-milk substitutes globally, with practices that are diverse and constantly evolving. The WHO guidance outlines clear recommendations for the implementation of regulatory frameworks in member states which Department of Health officials can consider in future consultation with an coimisiún going forward. The resolution is currently being drafted by the ministry of health in Brazil and has not yet been shared with member states of the WHO. However, following circulation of the draft resolutions and agreement by all WHO member states, Ireland will then consider co-sponsorship. Until such time as online safety codes are developed by an coimisiún, the HSE provides evidence-based impartial information and support for feeding options in infants and young children on the mychild.ie website and social media channels.
I am pleased to hear the acknowledgement that the WHO international code of marketing on breast-milk substitutes has not been fully implemented by Ireland. However, this was adopted in 1981 by the World Health Assembly and more than 40 years later the WHA is now attempting to update it to include digital marketing as well. That is simply what this is about. The fact that Ireland has not fully implemented the code from 1981 is shocking. Is it any wonder that we have such low rates of breast-feeding in Ireland? We need to get moving on this. I fully appreciate what the Minister of State says. It is good news that Ireland will consider co-sponsorship of the code, but we must then implement it once it is adopted rather than let it sit on a shelf, which is what seems to have happened with the original code from 1981.
I thank Senator O'Reilly for raising the very important issue of restricting digital marketing of infant formula. Research indicates that breast-feeding gives a child the optimum start in life and that increasing our breast-feeding rates will contribute to improvements in child and maternal health and can contribute to a reduction in childhood obesity and chronic diseases.
The Senator's question has highlighted the need for a regulatory framework to restrict the marketing of breast-milk substitutes, and this work will be progressed in consultation with Coimisiún na Meán and in the development of new online safety codes. The HSE's breast-feeding implementation plan runs to 2025 and the Department of Health will continue to work with the HSE's national co-ordinator in delivering on the five-point action plan.
The vision of Healthy Ireland is that everyone can enjoy physical and mental health and well-being to their full potential. The Government remains committed to improving breast-feeding rates and moving towards normalising breast-feeding within our community.
Promotion of breast-feeding as part of healthy lifestyle choices will remain a priority for new policy development over the coming years.
The Senator raised a very important point. I am sure others will support her in respect of it.
I thank the Minister of State for being here. I thank Senator O’Reilly and the other Senators, the staff of the House and the ushers. The House stands suspended until 11 a.m. Go raibh maith agaibh go léir.
Cuireadh an Seanad ar fionraí ar 10.40 a.m. agus cuireadh tús leis arís ar 11.02 a.m.
Sitting suspended at 10.40 a.m. and resumed at 11.02 a.m.