Dáil debates

Tuesday, 15 May 2012

4:00 pm

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)

Deputy Martin will appreciate the unprecedented scale of the challenge that faced the Government when it took office. The uncertainty surrounding our corporate tax rate was a cause of a great deal of anxiety for would be investors. It took some time to rectify that. As I said to Deputy Martin on a previous occasion, the Tánaiste recalled every ambassador and consul to explain the nature and philosophy of the priorities being set down by Government. That is reflected in the decisions made by many multinational companies since then. I outlined these to the House in recent weeks. Multinational companies continue to decide to make big investments in Ireland. We want to keep that level of investment flowing in.

It is obvious to everyone that the complaint, from small business in particular, is about access to credit. That is why when the Economic Management Council had a number of meetings with the banks, the two pillar banks gave a commitment to increase lending by €3.5 billion this year. The banks set out their strategy for that. Deputy Martin is aware that it is difficult to force banks to lend at a time of challenge and recession. The entire philosophy and culture has changed in this country. Where small businesses previously went to banks and requested assistance or increased loan facilities, it was always on the basis of property or land but that is not the case any longer. Loans must be based on cashflow projections and the risk assessed by the bank. In that sense quite a lot of small businesses have not had the experience themselves of putting together cashflow projections for six months or 12 months. That has been a cause of some delay as well. We intend to meet with the banks on a regular basis to see how their commitment to the lending of €3.5 billion of new money is being implemented.

I referred to Deputy Adam's question on NewERA and its function in assessing valuations in respect of State assets that might be potentially considered by Government for disposal. The creation of jobs through that investment could be considerable. The programme sets out the Government's belief in the creation of 100,000 new jobs by 2015.

Deputy Martin referred to front line services. While a range of positive actions are taking place across the spectrum of the Department of Health, there is still a long way to go. I pay tribute to the medical teams and all those involved in front line services such as nurses who, in the face of a perceived catastrophe when people left the public service at the end of February, measured up in terms of the implementation of hospital plans for each individual hospital and have carried them through with great effect. We want mental health to be central to the delivery of normal health services. It is clear that in a number of counties where there were big institutions and where significant numbers of nurses left the service the balance between retaining an institutional facility and having a community programme is one that is difficult to get right.

In respect of the disability services, it has been identified that there will be 700 school leavers in 2012 with intellectual disabilities. The HSE is now carrying out intensive work and discussions with non-statutory providers so that the emerging needs of those people can be met. The Disability Federation of Ireland and the National Federation of Voluntary Bodies are working closely with the authorities in that regard. It may be the case that persons with intellectual disability leaving school this year would require a range of activities. Some may require FÁS funded vocational training. Others may require approval to extend their educational placement for a specified time or they might remain in the class or the school for a further year. A further group will require rehabilitative training or day services provided by the Department of Health. The numbers are identified. Not all of the students will require support when they leave school. A small number will be able to move into mainstream employment and education. There is a challenge within the budget that is allocated. The voluntary federations and the HSE are now working intensively with regard to the 700 individuals who have been identified as leaving school this year.

I would be the first to say to Deputy Martin that we still have a long way to go in this and in a number of other areas. However, the Minister, Deputy Reilly, and both of his Ministers of State have made significant decisions that are making an impact but in time that will become more obvious with, I hope, a benefit for everyone.

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