Dinny McGinley (Donegal South West, Fine Gael)
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Question 88: To ask the Minister for Community, Rural and Gaeltacht Affairs if he is satisfied with the functioning of a company (details supplied) in view of the recent allegations of bullying and the failure of the body to spend moneys allocated to it for project development; and if he will make a statement on the matter. [30959/05]

Éamon Ó Cuív (Galway West, Fianna Fail)
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I am satisfied that the body concerned is making good progress on the work entrusted to it. As the Deputy is aware, there was an independent investigation into allegations of bullying and harassment and related matters in the body and actions to be taken arising from the report of the investigators were agreed with the CEO. Action on these is under way and progress is being monitored.

The failure to spend capital funds arose for reasons outside the control of the body itself and I am satisfied that the circumstances that led to delays in a number of key projects are now resolved. As the Deputy is aware, in the event of an underspend under any heading, the money is either reallocated to other projects within the Vote or surrendered to the Exchequer. In the case of deferral, a further provision is re-entered in the Vote the following year.

I should mention that I met recently with the CEO of the body to review progress in 2005 and discuss priorities for 2006. In this context, I am pleased to again acknowledge the work of the CEO and his staff in advancing the work of the body, often in challenging and complex circumstances.

The Deputy will appreciate that it is difficult to give a more comprehensive answer to his question on a 'details supplied' basis, but I will be happy to address any further specific questions he may wish to raise.

Dinny McGinley (Donegal South West, Fine Gael)
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I am sure the Minister will agree this is an important organisation, established as a result of the Good Friday Agreement, which has an important cross-Border dimension. I am sure he will agree also, as he more or less stated in his reply, that this organisation has had a turbulent existence since it was established a number of years ago. Recent difficulties within the organisation include auditing problems identified by the Comptroller and Auditor General in 2000, 2001 and 2002, and accusations of bullying, referred to by the Minister, which were upheld following an independent investigation, with the result that the staff are now undergoing anti-bullying training. There was also a recommendation that more transparent methods of recruitment would be employed by the body and that all vacancies should be filled in the normal way in such bodies, namely, by open competition. That practice was not always adhered to. The body knew since September that €12 million in unspent moneys was returned to the Government in 2003 and 2004. No one doubts this organisation is founded on worthwhile principles and aims but the question must be asked whether it is achieving these aims. The evidence suggests it is not operating at its most functional. The knock-on effect is a failure to achieve its objectives and the potential that up to €30 million of taxpayers' money could be wasted. Will the Minister agree that in view of these difficulties in recent years it may be timely to review the operations of this body and its efficiencies in achieving its objectives?

Éamon Ó Cuív (Galway West, Fianna Fail)
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Because the body has not been named by the Deputy in the question, I am precluded from naming the body and, therefore, giving specific details.

Dinny McGinley (Donegal South West, Fine Gael)
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If it helps the Minister, it is Waterways Ireland.

Éamon Ó Cuív (Galway West, Fianna Fail)
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That is of assistance in giving the Deputy a full answer. I would like to deal with a number of issues. Actions are to be taken on foot of the findings of the investigators and as the Deputy said, further courses on bullying are being arranged for all members of staff, including the CEO, building on the considerable work that has been carried out in Waterways Ireland over the past two years to put in place appropriate mechanisms for dealing with bullying and harassment in the workplace, with practically all staff now having been trained.

A full independent review of practices and policies relating to bullying in the organisation will be carried out at an early date. The review will include an audit of the current processes and training programmes in Waterways Ireland in regard to bullying and the possible setting up of an independent mechanism to support staff making complaints. The report will be made available to the Department. Those issues, therefore, are being dealt with.

On the third aspect the Deputy raised, the CEO will personally ensure that a written policy on recruitment and promotions based on best practice principles, including fairness and transparency, will be prepared and circulated to all staff in Waterways Ireland and that best public sector practice will be followed in future appointments and promotions within Waterways Ireland.

I would like to deal with the money issue because for a number of reasons it is not as simple as it appears. The first issue that arises is that the organisation was to build a headquarters in Enniskillen as well as two regional offices. The one in Scariff is already under construction and it is hoped to start building the headquarters in Enniskillen next year.

In terms of what happened, a number of years ago a capital provision was made for Waterways Ireland for these buildings. I do not have the exact figure here but if, say, €3 million or whatever was put into the funding in one year and it was not spent, that funding would be put back in a second year and, if not spent, the same amount of money would be put in a third year. People were talking about money going back to the Department but it is the same money allocated three times for the same purpose. It would be like the Deputy putting aside €30,000 to build an addition to his house, not getting around to doing it, leaving it the following year but doing it the third year. He would not have €90,000; it would be €30,000 held back over three years. In a Government situation, as the Deputy is aware, the money is either returned to the Exchequer or reallocated and then put back into the Vote. The underspends, therefore, are not quite as they appear.

Part of the underspend was due to delays in recruitment. Those are being dealt with although there are still difficulties in getting technical staff, including engineers.

Dinny McGinley (Donegal South West, Fine Gael)
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Will the Minister agree with a comment made by a former councillor, Chris Andrews, who said there is an urgent need for a root and branch reform of this organisation? Also, would he care to comment on disused properties owned by Waterways Ireland along canals, including gatekeepers' houses and so on, that are becoming derelict? Are there plans to sell off such properties or rent them out?

Éamon Ó Cuív (Galway West, Fianna Fail)
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I cannot give the Deputy information on the second question but if he gives me details of the properties involved, I will certainly follow up the matter or ask Waterways Ireland to give me details of any disused properties and its policy in regard to them. The Deputy will be aware, because we had to introduce emergency legislation, that I am very concerned the State should protect its assets from dereliction and so on.

All of the North-South bodies faced a difficult time over the past few years because of the changing political situation in Northern Ireland. That said, I am happy considerable progress has been made, particularly this year, in resolving many issues and progressing various projects. Some of the delays in relation to capital projects were outside the remit of the body. Those within its remit they got on with. The Royal Canal, for example, is progressing satisfactorily.

Dinny McGinley (Donegal South West, Fine Gael)
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What about the Ulster Canal as a cross-Border dimension?

Éamon Ó Cuív (Galway West, Fianna Fail)
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The Deputy probably saw the joint statement issued by the Minister of State at the Northern Ireland Office, David Hanson, and me in which we asked Waterways Ireland to urgently review the reports on the Ulster Canal as they relate to a section from the Erne upwards and from Lough Neagh downwards. We are not talking about the whole canal. I have always taken the view, and I believe it is a rational one, that if we could start the work and do it in sections, we would be making progress. We have asked Waterways Ireland to give us reports as quickly as possible, using the existing literature and previous reports. I am committed, and I am sure as an Ulsterman the Deputy would support me in this——

Dinny McGinley (Donegal South West, Fine Gael)
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I would.

Éamon Ó Cuív (Galway West, Fianna Fail)
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——to doing anything I can to progress that project. The Deputy will not find this Government anything other than 100% supportive of such a project.

Dinny McGinley (Donegal South West, Fine Gael)
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Or the next one.

Éamon Ó Cuív (Galway West, Fianna Fail)
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We will be here again.

Dinny McGinley (Donegal South West, Fine Gael)
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We will.