Dáil debates

Tuesday, 5 February 2008

3:00 pm

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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I know it is "Super Tuesday" but we have matters we must attend to in our own country. I am genuinely concerned at the leaking confidence evident now in the Irish economy. January saw the largest monthly increase in jobless figures since such records began, up 7,800 or 4.4% since December. That was the biggest monthly rise in percentage terms since 1980 and the largest increase in numerical terms ever.

Most commentators believe this comes from the slowdown in the economy, particularly the construction industry area. There were 6,400 males among the over 7,800 registered in that increase. FÁS has predicted that we can expect up to 30,000 job losses this year, a staggering amount, and it has also reported a 50% fall in the number of apprenticeships in what were known as the wet trade. This includes plumbing, painting, bricklaying and one well known to the Taoiseach, plastering.

There is anecdotal evidence about firms leaving off apprentices before they have completed training, a matter of genuine concern and hurt. Job losses are not a funny matter, nor are they limited to the house building sector. There were more redundancies notified in January from the non-construction sector of manufacturing than for construction, which speaks for itself.

As a result, almost 8,000 young people under 25 are registered on the live register. What is the Government's plan to deal with this issue? The Taoiseach and his anointed one recently stated that if we followed the macroeconomic plans of Government, all would be fine, everything is rosy in the garden and we will weather this storm. The Taoiseach does not appreciate the level of concern out there; people's lives do not lie and they can smell the change on the streets. What is the Government's plan to provide job opportunities and careers for young people in Ireland in the future?

Photo of Bertie AhernBertie Ahern (Dublin Central, Fianna Fail)
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Nowhere did I say all is rosy in the garden and there are no problems.

Photo of Jim O'KeeffeJim O'Keeffe (Cork South West, Fine Gael)
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Not since the election anyway.

Photo of Bertie AhernBertie Ahern (Dublin Central, Fianna Fail)
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We should be realistic. Deputy Kenny knows or will at least be aware that since 12 August there has been a financial market crisis throughout the entire world. That has had a knock-on effect into the last quarter in a very severe way on practically every economy of OECD countries — effectively the whole world. From a very strong position in the middle of the year, there have been ripple effects right through all sectors of international economies. It is not only in the United States, where there has been significant job losses and company closures, but throughout European communities.

It had long been predicted that we would see a slowdown in our housing market and whether it would happen in 2006, 2007 or 2008 was the only issue of debate. We had been building at a rate of between 70,000 to 88,000 houses per year, with the latter number the figure for 2006. It was not sustainable to build houses at four times the rate in the United States of America, six times the rate of the United Kingdom and approximately eight times the rate in the rest of Europe. That is not a surprise. While unprecedented numbers of houses are being built and unprecedented numbers are in employment, the figures are pulling back. House building is a labour intensive industry and I have said several times in the past few months that there has been a deterioration in labour market conditions, which was expected.

Available data show that employment in construction went well past that peak in the last quarter of last year. Employment in other sectors, however, is expected to offset the decline in construction, although in aggregate terms only a modest increase in employment is in prospect. The figure predicted at the beginning of the year was 24,000 net new jobs, equivalent to an increase of approximately 1%. For the past few years, employment has grown by approximately 3.5%. When the figures are placed side by side, one can see the difficulty.

At an aggregate level, there has been some decline in house prices over the past few years. That appears to reflect several factors, including the large increase in housing supply and the fact that a number of houses — it is debatable how many because different commentators give different figures — in the market, caused by an oversupply, have not been sold which has created a drag in the market. It will be some time before that moves through.

In other sectors, employment is still high. We are the fifth largest exporter of international services in the world. In manufacturing, we continue to be strong despite what people predicted a few years ago. We have lost some manufacturers, such as Allergen in Arklow last week, but today Zimmer, one of the top companies in the world, announced that it is coming here for the first time, with a €50 million investment. This shows an underlying confidence in the Irish market. Both companies are medical suppliers, one pulling out and going to Puerto Rico, the other coming here for the first time. We will see some results from that, depending on the product.

Other countries are putting the financial stimulus and impetus into the market that we have already put in. We have significantly increased the capital programme, with the State's investment of €8.4 billion which will help to drive the economy in many areas. That is approximately 1.5% of GDP. Other countries are considering a similar measure, as well as some of the changes we have made in tax policies for indigenous companies through the business expansion schemes and others. This is a difficult time, although over 2 million people are working and employment is increasing and we have a strong position on the purchasing index.

We do not need to knock this country as others in the financial services sector in Europe are trying to do because we are a strong competitor in the foreign direct investment market. I am not saying Deputy Kenny said that but he is aware that at least two operators in Europe have been doing this for the past few months. We must be conscious of that aspect.

Everyone is facing difficulty, and we must manage our difficulties, but this year we are talking about growth at 3%, with a low debt to GDP ratio, the ability to have a high capital programme and to continue to win significant foreign direct investment. We must manage ourselves through this position and we have already taken action. In terms of what else we need to do, we need to focus strongly on where the gains are for us. The issue is not about exports and imports; if our net exports are stronger than our imports, that adds growth. We get to that position based on productivity.

Photo of John O'DonoghueJohn O'Donoghue (Kerry South, Ceann Comhairle)
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The Taoiseach is well over time.

Photo of Bertie AhernBertie Ahern (Dublin Central, Fianna Fail)
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Sorry, a Cheann Comhairle. Productivity equals jobs which equal investment. That is why we must make sure we maintain and sustain a level of productivity that allows us to hold what we have in this difficult period and be able to move again as the cycle improves.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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The Taoiseach should take heed when the Ceann Comhairle says he is over time. It is time for the Taoiseach to go. That is a warning from the Chair.

The difficulties in the sub-prime lending sector in the United States did not cause the problem here with house prices because the Taoiseach, his Minister for Finance and the Government have presided over soaring costs and a range of stealth taxes that have created this leaking of confidence in the economy. The Taoiseach rightly points out that we are the fifth largest exporter in the world, but our broadband rating is 33rd out of 35 countries in the developed world. There are oceans of euros available to be invested in e-commerce companies, but they will not site here because they do not have access to broadband or do not have the speeds when they do set up here.

People's lives do not lie. They can smell the change on the streets, the local chemist shop is going to close down, the price of milk has gone up 20% and post offices and Garda stations have closed down. People see more parking spaces in shopping centres, the cost of living has increased disproportionately and mortgage repayments have increased, causing many social pressures as houses are re-acquired. The Taoiseach has presided over that during a decade of an unprecedented economic opportunity to prepare for the future. While people on the street know what is happening, Governments seem to be completely out of touch. I know the Taoiseach is not responsible for what happens in the United States or Japan, but there are issues he can deal with here over which his Government should have control.

Last week, I asked the Taoiseach whether he was prepared to direct FÁS, as it in his remit to do, to change tack in terms of training and upskilling to areas where there is a shortage, be it in sustainable development, the health or caring sectors, HGV drivers, chefs and the food industry. Will he direct FÁS to shift its resources to training for situations where there is employment and there is still a skills shortage?

On account of the enormous profits made by the construction industry over the past ten years, most construction firms should, and to be fair probably will, ensure that their apprentices will be allowed to complete that apprenticeship. Will the Taoiseach see to it that happens? It would be most unfair to young people who have entered into a chosen career in training or apprenticeship to find that it has been taken away from them because of a decision by the company.

Will the Taoiseach change the priorities in the national development programme to double the number of schools provided? Last Thursday, I saw the unprecedented sight of all the Fianna Fáil chickens gathering round Mama Hanafin's goody bag for the announcement of the schools that was in all the local papers last weekend. That is not how a democracy or a Government should operate in terms of providing jobs and dealing with the people's concerns. It should double the number of schools being built and bring the skills from the construction industry into that sector, rather than have parents fighting, as they are today, in the High Court for their children's right to an education. That is disgraceful.

Although the Taoiseach is presiding over our economy while the fundamentals are still strong, confidence is leaking and the Taoiseach is not addressing that issue. How does he expect to deal with the 30,000 jobs to be lost this year, according to FÁS? The Taoiseach says they will be offset in other employments. Where will they be? Burlington, Allergen, Jacobs and Kingspan account for the loss of 1,500 jobs in a short time. How will the Taoiseach deal with that aspect? Will he give us a weekly update on how he is going to steer the economy through this crisis?

Photo of Bertie AhernBertie Ahern (Dublin Central, Fianna Fail)
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I have been doing that successfully for the past ten years and will continue to do so.

Photo of James BannonJames Bannon (Longford-Westmeath, Fine Gael)
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What about all the young people in negative equity?

Photo of Bertie AhernBertie Ahern (Dublin Central, Fianna Fail)
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This economy, carefully handled by Governments I have led, will continue to drive employment.

Photo of Paul KehoePaul Kehoe (Wexford, Fine Gael)
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The Taoiseach is codding himself.

Photo of Bertie AhernBertie Ahern (Dublin Central, Fianna Fail)
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The Deputy misunderstands the effect of the sub-prime issue so there is no point in my going back into all of that area.

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Fine Gael)
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That has nothing to do with house prices escalating here, with a 50% increase in a year. That has nothing to do with sub-prime loans.

Photo of Bertie AhernBertie Ahern (Dublin Central, Fianna Fail)
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As for broadband, while I do not know who incorrectly informed Deputy Kenny, technology companies such as Google, Apple and Dell all continue to expand and invest——

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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I will provide the Taoiseach with the figure. Ireland is placed 33rd of 35 countries.

Photo of Bertie AhernBertie Ahern (Dublin Central, Fianna Fail)
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——and are moving to higher rate of advancement in Ireland with huge investment. Moreover, none is even thinking of pulling away from us because of broadband. They continue to develop their capacity within Ireland, of which we should be proud, as well as of our young qualified engineers who go through our excellent education system. In addition, they all use this country as their research and development base.

Photo of Seymour CrawfordSeymour Crawford (Cavan-Monaghan, Fine Gael)
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Not in County Cavan.

Photo of Bertie AhernBertie Ahern (Dublin Central, Fianna Fail)
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I am talking about the Republic of Ireland.

Photo of James BannonJames Bannon (Longford-Westmeath, Fine Gael)
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It is patchy throughout Ireland.

Photo of Dermot AhernDermot Ahern (Louth, Fianna Fail)
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Fine Gael is patchy throughout Ireland

Photo of Bertie AhernBertie Ahern (Dublin Central, Fianna Fail)
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While the House can discuss County Cavan another day, I am discussing the Republic of Ireland and Members should keep to that.

Deputies:

County Cavan is not in the North.

Photo of Bertie AhernBertie Ahern (Dublin Central, Fianna Fail)
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These companies are increasing their investments and operate their European plants using the high quality people who work here. This is happening everywhere. Deputy Kenny may take a certain satisfaction from the international economic downturn.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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That is a disgraceful remark.

Photo of Bertie AhernBertie Ahern (Dublin Central, Fianna Fail)
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However, as a serious political leader of a party, he should not take such a view.

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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He is challenging the Taoiseach to do his job.

Photo of Bertie AhernBertie Ahern (Dublin Central, Fianna Fail)
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If he had anything useful to say he would be supporting the Government's policies to increase the capital programme.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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I have proposed three ideas to the Taoiseach that he could adopt now if he so wished.

Deputies:

Hear, hear.

Photo of Bertie AhernBertie Ahern (Dublin Central, Fianna Fail)
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Deputy Kenny asked the Government to put more money into schools. The capital programme has been increased to 6% of gross domestic product. Nowhere else in Europe is doing so.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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The Government should build 60 schools instead of 30.

Photo of Bertie AhernBertie Ahern (Dublin Central, Fianna Fail)
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We have gone way beyond the figure in Europe so we can put stimulus into the economy. We will spend €600 million this year on the capital programme. Last year, 1,400 schools received investments under various school investment programmes.

Photo of Paul KehoePaul Kehoe (Wexford, Fine Gael)
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People still are waiting for schools.

Photo of Bertie AhernBertie Ahern (Dublin Central, Fianna Fail)
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When I took over as Taoiseach, 14 projects per year were being undertaken while the figure is 1,400 at present.

Photo of Paul KehoePaul Kehoe (Wexford, Fine Gael)
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I can take the Taoiseach to County Wexford to show him plenty of obligations.

Photo of Bertie AhernBertie Ahern (Dublin Central, Fianna Fail)
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Such investment may not take place to the same extent this year.

As far as FÁS is concerned, I remind Deputy Kenny that CERT looks after the catering trade. The Government is ensuring the continuing provision of training in all those sectors in which it believes employment opportunities exist, including the tourism sector. The Government would like to see more employers give first chances to Irish people in that sector. Pay and rates are good and in a more difficult time they should consider so doing notwithstanding the fact that excellent people of other nationalities can come here.

Photo of John O'DonoghueJohn O'Donoghue (Kerry South, Ceann Comhairle)
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We have gone way over time.

Photo of Bertie AhernBertie Ahern (Dublin Central, Fianna Fail)
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However, they can give preference to our workers.

As for construction, an enormous amount of development is taking place in major capital projects in the non-residential sector. We must ensure that this can be sustained. As I noted at the outset, productivity becomes essential when international markets experience a downturn. We must ensure that in 2008 and 2009, as we have done many times previously, we get the best value for the resources we invest. We must achieve high levels of productivity with an excellent workforce that provides good flexibility. This will see us through a period during which the economy is still growing by 3%, which is greater than in most OECD countries, and will enable us to achieve stronger growth in the medium term.

Photo of Eamon GilmoreEamon Gilmore (Dún Laoghaire, Labour)
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Last week the Central Statistics Office published the headline crime statistics for 2007, which are the worst for several years. In the last quarter of 2007, headline crimes were 6% higher than the corresponding period in 2006. As Members are aware, headline crimes constitute the more serious crimes to be recorded. In 2007, almost 105,000 headline crimes were recorded in this State, which is more than 2,000 serious crimes per week or almost 300 per day. They included the crime of murder, which has increased from 60 to 78 in 2007, which was the highest number of killings to occur in the State since the Civil War. This trend has continued in recent weeks. A gun murder took place in Sligo recently, as did the attempted murder of a well-known criminal in Dublin. Yesterday's news suggests we have exported our gang wars to Spain.

I do not subscribe to the notion that whenever a crime takes place, the Government is at fault. However, it is the Government's responsibility to reverse the trend of increasing crime in the State. The Government has set this objective for itself a number of times. I again ask the Taoiseach to take up a number of proposals that have been made by the Labour Party. Labour has tabled two pieces of legislation on the Order Paper, the first of which is to put on a statutory basis the witness protection programme, while the second is to improve the surveillance in which the Garda can engage.

In addition, will the Taoiseach take up Labour's proposal to increase greatly the number of community gardaí? In particular, will he arrange for the Minister for Justice, Equality and Law Reform to discuss with the Garda authorities the possibility of deploying increasing numbers of community gardaí by drawing on the increased numbers of gardaí who will graduate shortly from Templemore?

In that context, I remind the Taoiseach of a matter about which I was reminded recently, when the welcome announcement was made of the plans to renew the area of Moyross in Limerick. I refer to a speech made in this House on 11 March 1992 by the late Deputy Jim Kemmy, in which he described the conditions in parts of that city. At that time, his simple request was for a 24-hour Garda presence in some of the affected estates. It is a great pity that the stitch in time approach then suggested by Deputy Kemmy was not adopted, as it might have saved much trouble in the meantime. However, we can learn from it and I ask the Taoiseach whether he will take up the two approaches the Labour Party has been recommending for some time to deal with the escalating crime problem.

Photo of Bertie AhernBertie Ahern (Dublin Central, Fianna Fail)
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I certainly will discuss with the Minister the positive suggestions made by Deputy Gilmore. As he is aware, I raised one of them previously and the previous Garda Commissioner did not consider the mandatory basis to be a priority. However, I will raise both proposals again.

I will comment on the figures. Yesterday, the Minister advised me the Garda works closely with international law enforcement agencies in targeting the activities of Irish criminals who operate outside the jurisdiction. The offices both of Europol and Interpol also are used extensively to co-ordinate the exchange of intelligence in the targeting of such criminals. In addition, for a number of years the Garda Síochána has posted liaison officers to London, Paris, Madrid and the Hague. Their function is to liaise with law enforcement authorities in those jurisdictions in the context of serious criminal activity with an Irish dimension. Other jurisdictions do the same and it is necessary to so do because many such criminals try to operate on a hands-off basis in this jurisdiction by having others carry out their activities while living abroad themselves.

The Garda Síochána also has appointed liaison officers to Europol, which is based in the Hague, and to Interpol, which is based in Lyons. It soon is to have a liaison officer assigned to the analysis and operations centre based in Lisbon, which is the drug trafficking, intelligence and interdiction centre. The Garda works with law enforcement agencies in other jurisdictions as well trying to have exchanges of strategic intelligence on the activities and modus operandi of criminal networks involved in organised crime. It also conducts investigations within the State at the request of foreign law enforcement agencies in accordance with legislation governing mutual assistance in criminal matters. In addition, the Criminal Assets Bureau continues its statutory remit on these issues.

The figures are as outlined by Deputy Gilmore. The number of homicides has increased from 67 in 2006 to 84 last year. The Garda Commissioner's reported detection rate in respect of murders and manslaughters last year was 68% and 100% respectively. The Garda is working hard in respect of firearms and gang-related crime in particular. The level in this regard was reduced significantly last year and it was not in this area that problems arose.

There was a doubling of the number of homicides involving stabbing from 18 to 36. That is where the difficulty lay last year. It shows that, despite our having had a number of campaigns on knives, particularly in 2005, a knife amnesty and efforts on foot of the policing plan to deal with this issue, they did not prove effective last year. The figure has doubled and there is no argument about that. This year's policing plan reflects the intensified efforts of the Garda to tackle knife crime and includes a campaign aimed at discouraging people from carrying knives. We must get the message across and I will play my part in doing so. Carrying knives not only attracts heavy penalties but can lead to disastrous consequences. We must also be conscious that domestic violence can ultimately lead to death and in this regard we continue to support the efforts of COSC, the agency spearheading the tackling of domestic violence.

The Garda Commissioner has reported that the overall detection rate for headline offences last year, 41%, represents a slight increase, yet the figure needs to increase further. That there has been a substantial increase in drug-related detections is to be welcomed.

The budget for the Garda in dealing with all these issues and for the policing plan for this year is €1.6 billion. We must maintain a close focus on trying to reduce the crime rates. In spite of an increase in population, the figures are still high.

Photo of Eamon GilmoreEamon Gilmore (Dún Laoghaire, Labour)
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The Taoiseach is a great man for quoting statistics to suit his purposes. He regularly regales us with invidious comparisons between the time he took up office in 1997 and today, particularly in respect of economic matters. However, I remind him that when he entered office, he did so on the promise of zero tolerance of crime, yet the country is now being asked to tolerate levels of crime that are far higher than they were when he entered office.

The Taoiseach stated many of the crimes, particularly gang-related crimes, are linked to the drugs trade. He is correct that many of the crimes are now international and that much border-hopping is being done by criminals. However, in this age surveillance technology should be capable of identifying criminals, the nature of their activities and putting them behind bars. We have recently seen convictions being secured on the basis of tracking the locations of mobile phones. It is with this in mind that the Labour Party has proposed to the Government a number of measures to secure convictions, including the improvement of the powers of surveillance of gardaí and the use of their discoveries in court. These powers would be complemented by witness protection programmes so the criminals will not be able to avoid justice and slip off to the sun or wherever they go to live off the proceeds of their crimes.

This is an area in which the Government has not delivered on its promises. I do not want to continue to blame the Government for this but we need to see more action and urgency. In this regard, the proposals for legislation and on community policing have been on the table for some time and I would like to see some action by the Government to deliver on them.

Photo of Bertie AhernBertie Ahern (Dublin Central, Fianna Fail)
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As I stated, we will certainly look at the legislation. The Criminal Justice Act 2007, which was enacted in 2006 and came into effect last year, dealt with all the legislative measures the Garda wanted to deal with these issues. Technology keeps advancing and I will not argue with that. If there are enhancements that can be made to the technology system, they will be considered, although I know those involved in criminal activity are probably some of the best clients of the mobile phone industries because they change their phones every day. They discard them so technology cannot trace them. There is obviously new technology available and I am sure the Garda and its investigative teams are on top of it. The Government is obviously in favour of this and has provided significant resources for the Garda in this regard.

The Criminal Justice Act 2007 relates to gangland crime and makes it more difficult to get bail. It deals with people involved in drug trafficking, firearms offences or other serious crimes. It introduced tighter controls over post-release activity, enhanced penalties for those who reoffend within seven years, mandatory minimum sentences in cases of drug trafficking and firearms offences and the indefinite retention of fingerprint samples. All these fairly draconian measures are now law and available to the Garda in its activities.

An enormous number of gardaí are coming out of Templemore and the numbers have increased. We have been giving preference to the road traffic corps and have built up the number therein. There are now 800 in the corps and it is to increase to 1,200 in order to deal with the problems under its remit. Although we are aware of the ongoing difficulties in this regard, the corps has had great successes.

Obviously it is essential that Operation Anvil and other measures of the criminal justice system designed to target criminal gangs, particularly those in drug trafficking, receive the lion's share of the resources. That is the Minister's policy.