David Stanton (Cork East, Fine Gael)
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I am pleased to speak briefly on this important Bill. As Deputy Richard Bruton stated earlier in the debate, Fine Gael supports this Bill. The Council of Europe Development Bank was established in 1956. It is the oldest international financial institution in Europe and the only one with an exclusively social vocation. My interest in this Bill stems from its social vocation. Its main field of action involves strengthening social integration, such as aid to refugees, migrants and displaced populations. Social housing seems to be high on its list of priorities and much of the bank's money has been dispersed in the area of social housing. What medium and long-term plans has the Government to avail of the bank's borrowing facilities to assist social housing in this country? I note that the Minister did not allude to this in his initial speech.

Some of the largest borrowers from the bank include France, Germany, Italy and Spain. In 2003 France borrowed €50 million, Germany €115 million and Italy €242 million. The larger countries seem to borrow the most and are also probably the largest contributors to the bank. It is an important institution. Ireland plans to become more integrated in Europe and its use of this bank and other institutions is a means of doing so. I am concerned whether the Government has any plans to use the bank's facilities to aid refugees, migrants or Travellers. A stated mission of the bank is to strengthen social integration.

The bank is also involved in managing the environment and in preventative action in natural and ecological disasters. Last week during the Adjournment debate in the House I was allowed by the Ceann Comhairle to raise an issue of coastal erosion. The Minister has replied to me on a number of occasions that it is not possible for the Government to protect private property and land holdings from invasion by the sea. That subject should be examined because increasing damage is being caused by the sea, particularly in areas such as east Cork in my constituency where a large area of farmland is under threat from the sea. As the Minister of State is no doubt aware, when salt water lands on agricultural land, the land becomes useless. Will the Government investigate the possibility of using the services of this bank to fund a new scheme of coastal defences where necessary and where it is not possible to do so using any other method?

I note this bank will provide funding to preserve historic and cultural heritage. I am interested to hear of any Government plans in this regard. The Council of Europe Development Bank had assets of €14.2 billion at the end of 2002. Ireland is set to become the 36th member. The social housing sector presents a problem throughout the country. Other countries have used the services of the bank to assist in social housing needs. Has the Government any similar plans? In 2003 the bank approved two schemes in Portugal and Sweden amounting to €55.4 million. In Portugal a project totalling €50 million will provide for the partial financing of the construction of social housing and renovation of existing units by towns, municipal bodies, co-operatives and associations for the construction and management of social housing by private developers. Something similar happened in Sweden. A loan programme amounting to €5 million out of a total of €108 million was approved recently. That will make it possible to finance, at an advantageous cost, various instruments for housing infrastructure carried out by local communities and companies either owned or guaranteed by Swedish municipalities. They are responsible for providing social housing for low income families and for those who, by reason of age or handicap, must have access to specially equipped housing. Difficulties have arisen here in the administration of the disabled person's grant and the essential repairs grant schemes, an area that needs to be examined.

In Denmark, a €100 million loan was given in favour of Danish local authorities to provide for the construction and renovation of public housing intended for the elderly throughout the country. Something similar was done in Italy in respect of related infrastructures intended for immigrant workers, young families and the elderly. I could name other countries but that appears to be one of the issues for which the bank is being used.

In respect of disadvantaged urban areas in Finland, a loan programme of €25 million, of a total approved of €50 million, was established, again through the local authorities. That is something on which I would like to hear the Government's views.

In Spain, two projects were approved and partially financed. These were to do with cultural infrastructure, in which I am particularly interested. Perhaps the Minister of State, Deputy Parlon, who is responsible for the Office of Public Works, will examine that with his colleague, the Minister for Arts, Sport and Tourism — we no longer have a Minister for culture, which appears to have disappeared off the radar — because many towns in particular do not have cultural centres. They do not have places where youngsters can go and play music or get involved in Irish dancing, céilithe and so on. We must empower local authorities to develop that area, which would not be difficult, because it would provide an outlet for youngsters. The criticism is often made that many teenagers have nothing to do at night and nowhere to go, yet with a little imagination and money we could develop centres in our towns. The people in these towns are crying out for a little support to do that, and a small amount could go a long way.

Ireland has a tradition of people getting involved in drama societies. I am aware that in Spain, this bank was used to finance the construction of cultural buildings such as theatres, concert halls and libraries in rural areas. That is something we should examine. I am not sure whether we can use the services of the bank or whether the Government has plans to do that. If the Government does not want to use the services of the bank to do that, perhaps it should finance it from its own resources.

I understand a new four year development plan has been put forward by the bank, that it was approved in mid-2004 and will be in force from January 2005. Will the Minister indicate whether it has been approved, when it will come into force and what is involved in it? It would be of interest to us to know that information.

I note the Government has been criticised for its lack of support for the Traveller community, particularly in respect of health, halting sites and so on. I am aware this bank has, been used by other countries to help their migrant citizens with such difficulties. I do not know whether the Government intends to do anything like that, but it would be interesting to know.

It is a good move to become involved with this bank because it can provide opportunities for us to access finance to use in a positive and imaginative way. It also allows us become more involved with other countries in Europe and to strengthen solidarity across Europe. I welcome the Bill, which we support. I wish it a speedy passage through the House.

Tom Parlon (Laois-Offaly, Progressive Democrats)
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I thank Deputies for their wide-ranging and interesting comments on the Bill. Members of this House have shown a consistent and genuine concern in the affairs of less well-off countries of the world and that is acknowledged by me on behalf of the Government. Deputies, in their various contributions, emphasised the need to focus development efforts on the poorest countries and noted the benefits the Irish experience of development and social change could contribute to the wider world.

Deputy Bruton noted the valuable contribution made to the economic and social development of Ireland by international development institutions, including the European Investment Bank. I agree we should give our thanks for that past support and that, as we become wealthier, we must support other states in their development and in grappling with their problems. I welcome also his proper reference to the careful way past Governments and agencies have used funds given and lent to us by others. It is one thing to get concessional loans or grants and another to use them properly and wisely.

Deputy Bruton referred to debt cancellation, as did Deputy Healy. We have no debts to cancel. Ireland supports debt cancellation and I agree that wealthy countries need to do more to assist the highly indebted countries. This is an issue we have raised in many fora and while support is growing, money for debt cancellation is hard to find from the larger and most developed states. While we will certainly play our part, others are more reluctant. I also agree that the Irish experience has much to offer others in eastern Europe and elsewhere. We have learned some hard learned lessons, which might help others avoid blind alleys.

Deputy Burton noted the time it has taken to get the Bill discussed in this House — it has awaited Dáil time since February last. It came close to discussion on several days but other urgent legislation pushed it backwards. The Deputy mentioned also the useful work this bank can do in assisting the Roma community in the countries where those communities are established.

Deputy Burton also mentioned the need for good governance, particularly in Africa, where progress in meeting the millennium development goals is painfully slow. Ireland's priority for aid is heavily geared toward countries in Africa, and we also see the need for more assistance and reform in Africa.

Deputy Howlin referred to the fact that we are late in joining the bank. That is true. Our slowness to join the bank was not due to any reluctance as to the importance of the bank, but we were short of funds. He also pointed out the problem of corruption and the hard choices that must be made. On the one hand, some of the poorest people live in countries that have high levels of corruption. Doubly cursed by poverty and rapacious officials, we must ensure that aid and assistance is not stolen or diverted. This House supports aid. It does not support aid being diverted to pay for presidential palaces, backhanders or otherwise.

Deputy Harkin mentioned the high rates of growth Ireland has seen in recent years. It is our intent to use some of this growth to the benefit of others, particularly in support of the millennium development goals.

Almost all Deputies spoke about ODA, and I welcome their support for development aid. Our contribution is new and additional.

Deputy Boyle mentioned the Kyoto Protocol. As he is aware, recent decisions by Russia make ratification likely. No doubt he will not wish to see the developing world repeat the errors that we in the developed world made in regard to energy use. The problems of conservation and sensible development can be regarded as worldwide ones.

Deputy Ó Caoláin reminded us that, in general, Europe has progressed more since 1956 than many other parts of the world. This is due in no small measure to the strong institutions Europe has created — the Council of Europe, the European Union and banks such as the EIB. Europe is not a closed off place. Ten new countries just joined the EU and more are waiting in the wings.

Deputy Hogan mentioned the critical role of employment as an engine of development. We are now fortunate enough to have good employment prospects for our people, but much of eastern Europe faces daunting problems. The Deputy mentioned also the benefit we got from EU transfers and the need for those to be used wisely. This is something we fully support.

Deputy Twomey and others reminded us that while we have a long experience of outward migration, our experience of inward migration is more recent. I hope our support for this bank will help raise development in countries such as Bulgaria so that their citizens have greater choice regarding employment in that region.

The role of education in development is vital. In Africa and eastern Europe, primary education is not available to all, particularly girls.

Deputy Michael Higgins mentioned the problem of debt created in some cases by inappropriate policies, conflict or ill luck. In the case of Africa, significant debts need to be cancelled but some are in countries that have repudiated participation in the programmes and policies of the Bretton Woods institutions for long periods. The Deputy suggests the neo-liberal economic model has failed. In praising Keynes he may have forgotten that Keynes was one of the principal participants in the Bretton Woods conference that established the IMF and World Bank more than 60 years ago.

Deputy Cowley mentioned the need for balanced regional development. In many places in Europe the drift from the land remains a great problem. The bank supports this objective and tries to ensure that rural infrastructure is upgraded to keep people and jobs in the regions of Europe. Deputy Connaughton also gave welcome support to this Bill, for which I thank him. As representatives of rural communities, Deputies Cowley, Connaughton and I know the people we represent support measures to help rural development in poorer countries, as is the case in the Bill.

Deputy Stanton asked whether the Government would use the bank's facilities for programmes for refugees or social housing. It is not envisaged that Ireland will borrow from the bank. Our participation in it is aimed at supporting the needs of others. As regards other countries, national or local governments or others seeking to borrow may approach the bank and the bank will make decisions within overall policy. Governments do not decide or make allocations. While it is not a requirement of membership of the European Union to be a member of the bank — we joined the EU in 1973 while not a member — it helps to prepare candidate countries for membership.

Deputy Finian McGrath correctly reminds us that Europe has helped create the problems affecting some parts of the world. I welcome his support for Irish people who serve or have served overseas for humanitarian purposes. I welcome his efforts to focus on AIDS, which with malaria and water borne diseases, kill far too many people in the developing world.

Deputy Coveney mentioned the role of the bank in helping countries prepare for EU accession and noted that we spend little on military affairs. I welcome his concern with governance issues.

Deputy Crawford reminded us of problems in the agricultural sector and of our experience of famine. In recent times, people in the Balkans faced hunger and war and reconstruction aid is still required in the region.

I do not have the details Deputy Stanton requested regarding the bank's development plan but I will revert to him on the matters he raised at a later date.

I thank Deputies for their contributions and support for the Bill. Unfortunately time does not allow for further comments in regard to all the points raised. I am, however, heartened that all sides of the House are committed to the expression of solidarity and social inclusion in the wider Europe, which is the core mission of the Council of Europe Development Bank.