Dáil debates

Wednesday, 18 June 2008

The following motion was moved by Deputy Gilmore on Tuesday, 17 June 2008:

That Dáil Éireann conscious of the many serious social and economic issues facing the country, including:

the most rapid rise in unemployment ever recorded with live register figures having again gone through the 200,000 barrier;

the deteriorating economic situation reflected in the most recent Exchequer figures;

the serious problems being created for hauliers, fishermen and others by the huge jump in the cost of diesel;

the danger of increased fuel poverty for low income families as a result of increased fuel and energy prices generally;

the continuing high level of inflation with the consumer price index hovering just below 5% and mounting evidence that Irish consumers are being ripped-off, particularly by the failure of Irish branches of British based multiples to pass on the benefits of the increase in the value of the euro;

the failure of the Government to introduce the promised legislation to place on a proper statutory basis the nursing home subvention scheme;

the disclosure that more than 40,000 primary school pupils are being taught in prefab buildings;

the continuing serious shortcomings in the health service and the ongoing cutbacks, particularly in regard to community health services; and

the most recent crime figures which show a particular increase in the number of public order and homicide offences;

believes that against the above backdrop it would be irresponsible for the Government to proceed with its intention to adjourn the House for the summer recess on 3 July when so many serious issues require attention;

resolves that Dáil Éireann shall adjourn for its summer recess not earlier than 24 July and shall return not later than early September;

calls on the Government to enter into negotiations with the Opposition parties with a view to securing agreement on a substantial increase in the number of sitting days by, in particular, reducing the duration of the summer and Christmas recesses.

Debate resumed on amendment No. 1:

To delete all words after "Dáil Éireann" and substitute the following:

notes that the Government through its ongoing management will continue to address the important economic and social issues facing the country over the coming months;

welcomes the Government's firm commitment to position the economy for sustainable development over the years ahead, while adapting to the reality of more moderate growth in the future;

welcomes the Government's commitment to continuing to achieve sustainable development through improving national competitiveness, as demonstrated by its maintenance of a low burden of taxation on labour and capital and by the priority that it has given to investment under the national development plan in the economy's physical infrastructure and skill levels which will enhance Ireland's productive capacity and thereby lay the foundations for future improvements in living standards;

welcomes the commitment by the Government to protect the poor and vulnerable in our society as evidenced by the significant resources allocated to the areas of health, education and social welfare over recent years; and

notes the Government's intention to publish the annual report of the NDP and agrees it will be debated in the Dáil in the week of 7 July 2008.

—(Minister of State at the Department of the Taoiseach, Deputy Dick Roche.)

7:00 pm

Photo of Pat BreenPat Breen (Clare, Fine Gael)
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I thank the Labour Party for bringing this motion before the House. The body politic is being seriously undermined. I concur with my colleague Deputy Varadkar when he said last night, "Public trust in politics and politicians is at an all-time low". The disappointing result in the Lisbon treaty referendum is testimony to this mistrust.

Proposing an extra week's sitting to have statements on the national development plan without debate shows how this Government does not have its finger on the nation's pulse. This extra week's sitting is a complete waste of time with no Dáil business, Order of Business or any opportunity to raise matters on the Adjournment. Last night, Deputy Cuffe of the Green Party claimed this is a movement in the right direction. It is just another charade to fool the people into believing the Government is dealing with the challenges facing the country.

Nothing could be further from the truth. One only had to read this morning's headlines. Or did the departmental media monitoring units miss these like with Aer Lingus transferring its Shannon-Heathrow slots last summer? The headlines stated consumers face a record hike of 30% in electricity prices, the Health Service Executive is losing €1 million a day and international investors are shunning Ireland for greener fields. While fairy tales were being played out at the Mahon tribunal and while the former and current taoisigh were out clapping themselves on the back on extended laps of honour in America and Birr, a crisis was raging in our economy. Inflation has risen to 4.7% and the live register figures have hit 200,000 for the first time in a decade. The overall number of those working in the construction industry fell by 13.8% in April this year compared to the same month last year. There is also the problem of the major fuel price hikes hitting all sectors in the economy.

I have been warning the Government for some time of the effect the slowdown is having in County Clare. Yet there has been a deafening silence from Government. It must bear a burden of responsibility having allowed Aer Lingus to depart from Shannon with the Heathrow slots. There has been a staggering 26.89% increase in the live register figures in Clare in the past 12 months. Last week, further bad news on the job front came when Buffalo Technology Ireland and Kielys Electrical closed their operations in Clare. Up to six businesses have closed in Ennis over the past several weeks. The loss of the Shannon-Heathrow air service is a considerable obstacle when attempting to attract new investment to the area. Access to markets is a serious cause of concern.

The extension of the US Customs and Border Protection facility was promised to be in place in Shannon Airport by 1 May but like many Government promises the deadline has passed. The lack of connectivity to broadband continues to frustrate individuals and businesses in many areas of the county. A broadband operator was promised be in place at the end of August but, again, I have my doubts this deadline will be achieved.

Last night I raised on the Adjournment the third world conditions that teachers and children have to put up with at Ennis national school. I could have been speaking about many of the 36 primary and six post-primary schools in Clare. Six months into the year funds have dried up in County Clare for the housing aid for the elderly scheme because no funding is forthcoming from the Department of the Environment, Heritage and Local Government.

In ten years Ireland's competitiveness has fallen from fourth place in the world to twenty-second. The steps that are required to address these problems are well documented and included in the national development plan. They include improved access, fast-tracking infrastructural projects in roads, rail and broadband and maintaining investment in education.

There will be no debate on the national development plan in the House in July and the Government will not be held to account. The House needs more accountability not less. Many Members are already frustrated at receiving no answers from the Government when they raise important issues. Instead, Members are informed such matters are the responsibility of various agencies such as the Health Service Executive or the National Roads Authority. That is why the extra week of statements in this House is a sham with no real business transacted.

I am reminded of the quote, "If we get a government that reflects more of what this country is really about, we can turn the century — and the economy — around." Unfortunately, we do not have a Government that reflects but a show business one that performs for show.

Photo of Paul Connaughton  SnrPaul Connaughton Snr (Galway East, Fine Gael)
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I commend the Labour Party for putting down this motion. I have heard many debates on this matter over the years. Every Government and Opposition has always spoken about shorter holidays. In my 30 years in politics, however, I have never seen the economic indicators as bad. Is it not ironic that the Parliament, in which one would expect some leadership, will close on 10 July and not return until 1 October?

There was a lesson from last Thursday's referendum. All Members were out in solidarity with the "Yes" vote but were brushed aside. The people said they did not take us guys seriously. If politicians are to have any credibility in turning the economy around, it must start in the Parliament. Where else will the people's — both young and old — best interests be served other than in the Dáil? Instead, it has been decided to have a three-month holiday.

Some years ago there was no problem in recalling the Dáil for two days in the summer when Larry Goodman was in trouble. While there were important considerations in that case, how much more important are the 4 million people who are directly affected by what is happening in the economy? No Member can tell me there have not been occasions in the past when a Government felt it was important to recall the Dáil.

The Government wants to be in the Dáil as little as it can. The less accountability, the better. It simply wants to run and hide. After last Thursday's referendum result, however, there is not much room to run. Politicians must stand up and be counted.

Why can the Dáil not be recalled on 1 September? From a public relations' perspective, it would stop the press from commenting on us. The majority of Members do not want the long recess because we will be working in our constituencies regardless. It makes little difference to me if the Dáil sits longer, as I am at the job 51 weeks of the year. The public perception, however, is that Members are on holidays most of their lives. We play to that image by taking the Government's official line, closing the Dáil for three months in the middle of the summer. Few people have avoided being adversely affected this year and one would have to be a hermit living on the top of Croagh Patrick with neither a car nor proper food nor using services of any description. Everybody else will be hit. The service industry will be hit because people's purchasing power is falling and people are losing their jobs in service industries. Inflation has risen and it is difficult to obtain a mortgage from a bank. A young couple came to me today and it is difficult to believe but the bank's reason for refusing to give them a mortgage on this occasion was because the planning permission on their site was more than three years' old. If this is the kind of carry-on our young people must put up with this year and the 166 TDs, including Ministers, leave here for three months this summer, the next time a referendum is held, we will be given an even greater mauling.

Photo of M J NolanM J Nolan (Carlow-Kilkenny, Fianna Fail)
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I wish to share time with Deputies Mansergh, Kelleher, Flynn and White.

I welcome the opportunity to speak on this motion. Many times Deputies on this side of the House stand up to vehemently oppose the Opposition motion but on this occasion I see merit in it. Since I was first elected to the Dáil in 1982 I have questioned the length of holidays which the House takes each year. It is difficult to explain ourselves to the public. However, it is important to put on the record of the House that when Members opposite are in Government they also take the same line and the House goes into recess for three months.

We are in changing times and it may be time for some Government to change the way we do our business. The result of last week's referendum is a salutary lesson for us all. The three main political parties took a decision to go one way and the public, as is their right, decided it is time to teach us all a lesson.

We are now in difficult times, both internationally and domestically. International factors influence our economic growth. Far from the great days of 5% to 10% economic growth of the past 15 years, we are heading to a point where some commentators are forecasting negative growth in 2008. We must face those challenges and deal with them and this is not an easy task for the new Minister for Finance, Deputy Brian Lenihan, as he prepares for his first budget. We must face the reality that there will be more people unemployed, not just in the construction industry but in many sectors of Irish industry which are finding it difficult to compete. Oil prices have risen and our rate of inflation is one of the highest in the EU and must be tackled. The financial crisis which was prompted by the sub-prime mortgage financial situation in the United States is causing a credit crunch. Not just businesses but also individual families are finding it difficult to secure loans for housing. This has a knock-on effect of a surplus of newly constructed houses and apartments. A total of 88,000 housing units were constructed in 2006 but less than 35,000 units will be completed this year, with no real significant increase projected for next year. This will have a knock-on effect on those employed in the construction industry and on suppliers to the industry.

I ask the Government to hold its nerve and to take control of certain issues, such as wages. The new social partnership agreements are being negotiated and I ask that a positive and constructive role be taken by all parties. We have control over certain sections of the economy and this is evident in the manner in which the Government in the past few years has tackled the problem associated with the insurance industry where exorbitant insurance premiums were being charged. Thanks to the stubbornness of the Government and the Ministers involved, we took control of that situation.

The charges being imposed on small indigenous businesses by local authorities should be examined. I ask that the success of a low tax regime should not be lost and the Government should resist the temptation to increase personal taxation. The rate of corporation tax has proved significant in attracting foreign direct investment. In this time of difficulty I ask the Government to hold its nerve.

Photo of Martin ManserghMartin Mansergh (Tipperary South, Fianna Fail)
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I welcome the opportunity to contribute to this debate on the adjournment of the House for its summer recess and more important, the economic and social issues currently facing us. I firmly believe we must take care in correctly addressing the challenges that face us. We must not make the same mistakes we made in the past such as curtailing capital investment which led to crumbling infrastructure in the 1980s. In addressing the difficulties we face, we must distinguish the situation from the downturn of the 1980s. There is a number of key economic and social factors in our favour. We have a work force which is young, dynamic and adaptable, with 2.1 million people in employment. The size of this work force puts us in a better position to support the current far more extensive social programmes. We have flexible markets, including the labour market. These markets are characterised by a light regulatory burden. In the labour market, greater flexibility has been key to the creation of over 700,000 jobs over the past decade. We have a pro-enterprise environment in which the burden of taxation on both capital and labour is low. This has facilitated a greater entrepreneurial success and the significant growth in small and medium-sized enterprises that are key to greater balanced regional economic development. General Government debt is forecast to be about 26% of GDP at the end of 2008, one of the lowest ratios in the euro area and net debt is around 14%. We are currently running a budget surplus.

The strong economic and social circumstances that exist allow us to be optimistic for the medium-term future of our economy and society. However, the Government is aware of the formidable challenges facing both our economy and the most vulnerablein our society. These difficulties include a continuation of international financial market difficulties, rising food and commodity prices, which were the main focus of two international ministerial meetings I have attended at the OECD and ASEM in the past fortnight, adverse exchange rate movements and a general weakening of the economic outlook in several of our major trading partners.

The Government and its predecessors have a strong record of targeting State assistance to the most vulnerable in society. This commitment will continue through the present economic difficulties. Spending on health and children will be in excess of €16 billion in 2008, a fourfold increase since 1997. All service areas have benefited from this greatly increased funding. There has been an increase of approximately 5,100 additional health front line staff since 2005. The €900 million multi-annual investment programme for high priority disability services announced in the 2005 budget has created in excess of 500 additional residential places, over 200 additional respite places and 1,000 additional day places since 2005.

The legislation to introduce fair deal, a new scheme to support people in long-stay care, is currently being prepared and will be published as soon as possible, following Government approval. The Government provided €110 million in the 2008 Estimates for this scheme. In the interim, I wish to reassure the House and the general public that the current arrangements for nursing home subvention will continue uninterrupted.

The Taoiseach this morning dealt with the issue of the school building and modernisation programme under the national development programme and pointed out that approximately €590 million has been provided for the school building programme this year.

Resources provided for policing have expanded rapidly with the Garda budget standing at over €1.6 billion. Garda numbers have been increased to over 14,000. Extra civilians have been taken on and resources are also being invested in technology.

The report on national development progress in 2007 will soon be available and will be laid before the Houses of the Oireachtas. This report will detail the very significant investment in social inclusion, including investment in child care, supports for young people, supports for the unemployed to access education and employment, services for older people and other measures to combat social exclusion. To say we in Government have not been active in underpinning the foundations for future sustainable growth is wide of the mark. We are actively working to ensure greater equality of opportunity so that all of our people can contribute towards an economic upturn. Accordingly, it is appropriate that the current Dáil session be extended to allow the annual report of the national development plan to be debated in the week beginning 7 July 2008. In this regard, the Government looks forward to a constructive and informed debate on the report.

With regard to the more general question of the length of Dáil sittings, comparisons with the legislatures and administrations of much larger countries are, in my opinion, of limited validity. The lengths of breaks have been significantly shortened compared to what they were in the 1980s. The practice of the rainbow coalition was the same as its successors. The Government will be focusing in particular on the Estimates in July and September. Outside August, Oireachtas committees will continue to meet. Ministers and Deputies will have the opportunity to take on a range of political engagements — locally, nationally and sometimes internationally — that are not always possible when the Dáil is sitting.

Yesterday, Deputy Gilmore referred to odium while another Opposition Deputy mentioned public relations. These are points one must take seriously in light of events last week. At the same time, if one analyses the word "odium", it means that some newspapers, in order to boost their circulations, will try to have some fun, yet again, at the expense of Members of this House. We should stand up for ourselves and not cower before cartoons and cheap comments. If one applied the same criteria to some of the people who write these things, I dare say we would not have too much difficulty justifying our work rate. We have a lot of work to do all year round, bar short breaks to which we, like everybody else, are entitled. I do not think we should apologise for the way we do our business.

Photo of Beverley FlynnBeverley Flynn (Mayo, Fianna Fail)
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I welcome the opportunity to speak on this motion. It is true that the economic environment has become increasingly challenging in recent months and the outlook is more uncertain. Risks that were identified in the last budget have come to fruition, such as recent developments in international financial markets, a further appreciation of the euro against the dollar and sterling, a decrease in international growth and a sharper slowdown in housing. Now is the time for us to respond appropriately and we can and will do so.

I wish to focus on the construction sector. Regarding the housing sector in particular, the Government has taken a range of effective measures to support housing affordability and facilitate the orderly and balanced operation of the market. The maximum rate of mortgage interest relief has been doubled over the last two budgets. In addition, stamp duty changes were introduced in the last budget that were the right measures at the right time. The bulk of housing output over the period of the National Development Plan 2000-06 was provided by the private sector and this will continue to be the case under the new national development plan.

There are currently 40,000 unsold houses in the country. Developers pay VAT at 13.5% when a house is sold, which represents in the region of €35,000 to €40,000 per house. At the moment, €1.5 billion worth of VAT is tied up in houses that are already built. That money would be very welcome in the Government's coffers. First-time buyers are sitting on the fence while construction workers are losing their jobs and are being encouraged to work abroad. The Government tax take in the construction area generally, not just from VAT, is down. We need to examine some areas in order to address this situation. Under the NDP, significant moneys are allocated for the provision of social and affordable housing. The current market presents an opportunity, if resources were freed up to local authorities, to enable them to negotiate deals to buy up affordable houses to satisfy current demand for social housing. This matter should be given careful consideration.

The Government should also consider introducing a first-time buyer's mortgage subsidy for anyone who buys a house within the next 12 months, to stimulate interest in the market. In addition, the Government should consider offering incentives to home-owners to improve the energy efficiency of their homes. Approximately 1.4 million homes were built before the current building regulations were put in place. Some 700,000 homes were built when no regulations were in place whatsoever. At a time of high energy costs, such measures would reduce the financial burden on households as well as reduce greenhouse gas emissions. The Government should consider taking those steps.

There is a danger that many people are trying to talk us into a recession. They seem to take delight in predicting doom and gloom for our economy. While we are encountering difficult economic conditions, so are many other parts of the world. Consumers are currently feeling the effects of economic uncertainty when they go to the petrol pumps. We are privy, as we always have been, to the whims of outside forces. International events, whether they are in the Middle East, South America or Africa, can affect the cost of fuel.

We must be pragmatic, however. Global economic developments play a key role in shaping Ireland's economic horizon. We are highly integrated into the global economy. The old saying that if America sneezes, the rest of the world catches a cold is the reality of the situation. The difficulties in the United States stem mainly from the housing market and particularly from the sub-prime mortgage segment of that market. These developments have impaired the functioning of international credit markets. Now is a time for cool heads; we must be willing to take the appropriate action to get through these tough economic times. Our economy is flexible and resilient. As a result of our sound economic management and fundamental fiscal factors, such as our low debt-to-GDP ratio and the substantial surpluses we have had for the past decade, our economy has the ability to absorb shocks in an efficient manner. Our rate of growth is much higher than elsewhere in the euro area. Financial experts are of the view that we should see a return to trend growth from 2010 onwards. Economic conditions in 2008 and 2009 will continue to be difficult, but they can be managed with sensible policies.

The Government should give priority to front-loading the infrastructural portion of the national development plan because this will help, in the short term, to absorb some of the capacity emerging from the new house building sector. Under the Government's assured stewardship, the fundamentals of the economy remain strong. As a result, we are well placed to absorb the housing adjustments and external shocks so our medium-term prospects will continue to be favourable. Our public finances are also sound, with one of the lowest levels of debt in the euro area. Our markets are flexible, allowing us to respond efficiently to adverse developments. We have a dynamic and well-educated labour force. We have a pro-business, outward looking society. The tax burden on both labour and capital is low. Not many countries anywhere in the world are facing the current global economic difficulties with such advantages. There is still very much to be positive about.

The Government will not take the soft option of cutting back on our ambitious investment programmes. The healthy state of our public finances means that we have some room for manoeuvre. We are borrowing modestly to invest ambitiously and will be well positioned to take full advantage when the world economy returns to better health. With appropriate action we can ensure that we achieve our optimum growth potential.

Now is not the time for scaremongers to set the agenda. Our economy is stable enough to come through these difficult times and we will emerge stronger and bolder to face any other challenges that may be ahead of us. After a period of unparalleled growth in our economy, there was always going to be a period when the rate of growth slowed down. This is particularly so in the construction sector where the growth in the number of units being produced — in the region of 80,000 in 2006 — was simply not sustainable in the long term. We will probably see 50,000 units per annum as the level to satisfy market demand. At present, however, we must recognise that there is a problem in our construction sector. It is important to stimulate it because when that sector does well, the economy tends to do well also.

I welcome the decision of the House to sit for an additional week. I hope it will go some way towards satisfying the calls from the Opposition to do so. It is important to recognise, however, that Oireachtas committees sit throughout the summer period. It is only in August that the House does not sit. As the Minister of State, Deputy Mansergh, said, the vast majority of Members of this House work very hard and everyone should recognise that fact.

Photo of Mary WhiteMary White (Carlow-Kilkenny, Green Party)
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I am delighted to contribute to this debate, even though much of our political energy in recent days has been spent on the implications and repercussions of the Lisbon treaty referendum. While there are many items on the domestic agenda, in the context of the Labour Party motion, I want to discuss fuel prices, fuel poverty and what can be done to help families on low incomes. The motion refers to the danger of fuel poverty for such families as a result of increased fuel and energy prices. Everybody knows that those prices have only gone upwards. The increasing prices typified last month by the largest ever increase in the price of oil in one day create fears of greater increases in the coming months and put pressure on our competitiveness.

Yesterday, a report published by Sustainable Energy Ireland made for grim reading as we learned that people are becoming increasingly dependent on electrical goods, with more and more domestic appliances switched on at any given time, and average household electricity use increased by 62% between 1990 and 2006, during which period household fuel use decreased by 0.3%. Something will have to give. It is not usual for a family of four children and two adults to have six television sets, four computers, DVD players, PlayStations, tumble driers and other appliances. We have never had more appliances in our homes and it costs money to leave them on. The Power of One advertising campaign advises us to unplug electrical devices at night because it would save us a whopping €500 per annum.

The Green Party in Government has introduced a range of schemes which are helping and encouraging domestic energy efficiency. They include the home energy saving scheme for existing houses and micro-generation programmes which allow users to generate green electricity for their own use. The greener homes scheme has entered a new phase which includes housing grants for those on lower incomes and grants for schools and community schemes. The Minister for Communications, Energy and Natural Resources has also doubled the support price mechanism for critical bioenergy power production systems which will attract the farming sector through the use of anaerobic digestion, waste slurries and straws to create green electricity. He has also announced a range of price supports and grants to encourage people to establish businesses or conduct research in the renewable energy sector. Savings of 20% could be delivered in the medium term.

I recently visited Güssing in north-east Austria, a town which, until recently, suffered from mass migration and low employment levels. It now boasts full employment and is one of the richest areas of Austria as a result of becoming the first European town to cut carbon emissions by 90%. Ireland could achieve this objective by producing heat, power and fuels from the sun, wood and agricultural products. We should take action to encourage our farmers to use waste straws and slurries and anaerobic digestion to create heat. Given the need to provide jobs, particularly in rural areas and the agriculture, construction, energy production and training sectors, employment opportunities are considerable.

Güssing has become one of the richest areas in Austria and has attracted 50 new companies to the area to support and sell extra electricity to other parts of the country. We should take the town as example as there is no reason we could not emulate it by supplying cheap electricity to heat local factories, workplaces, homes and public facilities, thus improving Ireland's competitiveness and addressing the problem of low incomes arising from fuel poverty. The latter is a major worry among older people. Carlow, which plans to become the first green energy town in Ireland, will try to copy the Güssing model.

As Sustainable Energy Ireland has informed us, energy consumption continues to increase. On the question of whether this trend can continue, the answer is a definite "No". Sustainable energy and the creation of fuel security are the way forward. The Government, with the Green Party as a coalition partner, is driving forward innovative and proactive responses to the changing environmental and economic climate.

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
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I am pleased to have the opportunity to speak on this motion as it provides the Government with an opportunity to set the record straight. There is no doubt we are in challenging times and the period ahead will be difficult. I will leave it to others to recite the rhetoric of doom and gloom used by commentators, mainly outside the House. We all know we are in choppy waters internationally, with a credit squeeze, jumpy financial markets, increasing oil and commodity prices and the declining value of the dollar placing additional pressures on the inflation rate. The Government, however, remains in control and all levers at our disposal are being used to steer us through the current difficulties. We have strong leadership, renewed vigour and cohesive economic and social policies.

The fundamentals of the economy remain solid. We have 2.1 million people at work and the general Government debt is forecast to be around 25%, one of the lowest ratios in the euro area. Overall, net debt is forecast to be approximately 14% at the end of 2008. Our economy is not a basket case. Many commentators would like to undermine our achievements and some of the commentary is not helpful in this challenging period. The Government is facing up to reality by ensuring we have policies in place to navigate choppy economic waters.

The assets on which we relied to produce the so-called Celtic tiger are still available to us. Our education system has not suddenly dipped in quality and continues to produce top class, well educated young people. We still have relative flexibility in our labour market and sound fiscal and tax policies. As a country of English speakers, Ireland remains one of the key entry points for foreign direct investment into European markets. Such investment remains a fundamental part of the economy. All these assets still exist and are being used productively by the Government.

Another key asset has been our system of social partnership. As a Minister of State in the Department of Enterprise, Trade and Employment, I am keenly aware of the challenges facing business and the labour market. Now, more than ever, it is important we achieve a balance in our policies governing labour force development and flexibility and the regulation of employment rights. I am confident social partnership, which has developed organically into a robust framework since 1987, can deliver a fair, balanced and reasonable agreement which takes account of the rights and entitlements of employees, while ensuring the labour market remains flexible and competitive.

Last week, I attended the Council of Ministers which brought the temporary agency worker directive to a successful conclusion. I was pleased, on behalf of the Government, to be able to negotiate and sign up to a text that took account of the Irish industrial relations system. Central to our concerns was that the directive would recognise our tradition of social partnership. This concern has been addressed and it will be possible, under the directive, to build in derogations and flexibilities if the social partners reach an agreement.

With this further empowerment of the social partners comes additional responsibilities. The social partners must continue to strive for a balance not only in the area of temporary agency workers, but on the overall range of issues facing the labour market and economy, including competitiveness. More than ever, consumers and markets need certainty and confidence. The social progress and cohesion we have achieved in the past decade or more must be maintained. I am sure the social partners will again step up to the plate and, in doing so, the question of achieving a fair deal must be foremost in everyone's mind.

Not everything on the partners' wish lists will be achieved and certain issues may have to be parked and revisited when the economic outlook improves. The Government, for its part, will do everything it can to facilitate a renewed consensus and my Department is playing an active role in that regard. Even if it does not prove possible in the short or medium term to achieve consensus, the Government will ensure the economy and labour market remain flexible, competitive and fair.

I will briefly address the issue of unemployment in the short time available to me. Naturally, as Minister of State with responsibility for labour affairs, I observe with concern the trends in unemployment, the number of redundancies and the general "churn" taking place in the labour market. Some of these developments can be ascribed to market readjustment, for example, people who have moved out of construction and not yet found alternative employment. Reskilling and adequate training supports will be essential for those affected and the Government has appropriate policies in place to this end. The Government will, in the context of the national development plan and funding under the various training programmes, including the one step up initiative, live up to our commitment to train and upskill people to respond to the evolving labour market.

As I indicated, the labour market is experiencing a "churn" as many construction workers move out of the sector. This group needs to be retrained and reskilled with a view to ensuring they can move into other areas of the economy.

The results of the referendum on the Lisbon treaty were raised. While the treaty was rejected in its current form, I believe the Irish people are committed to Europe, the concept of an open market, free trade and the free movement of goods, services and labour. I ask Deputies and others to emphasise in their public comments that Ireland, through the policies it pursues, remains a central player in Europe. When we are speaking to American colleagues in particular and, more importantly, globally, the message should be reinforced at every opportunity that Ireland is still central and at the heart of Europe when it comes to economic policies. We have been well received in previous times in terms of foreign direct investment because of the policies we pursued, such as a low corporation tax and a well educated and flexible labour market and workforce. I look forward to the debate in a couple of weeks' time on the economy in general.

Photo of Joe CostelloJoe Costello (Dublin Central, Labour)
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I wish to share time with my colleagues, Deputies Jan O'Sullivan, Tuffy, Sherlock and Wall.

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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Agreed.

Photo of Joe CostelloJoe Costello (Dublin Central, Labour)
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I welcome this opportunity to speak on the important and pertinent Labour Party Private Members' motion. We have just finished a day-long debate on the aftermath of the Lisbon reform treaty in the course of which the Leader of the Labour Party, Deputy Eamon Gilmore, described the situation as the biggest crisis in Europe and Ireland since the Second World War. It is, therefore, unthinkable that the Government proposes to adjourn the Dáil in two to three weeks' time for the summer recess and not return until the end of September, a three-month holiday in the middle of a major crisis. One is reminded of Roman Emperor Nero fiddling merrily while Rome burned. However, in Nero's latter-day Italy and Rome, the Italian Parliament sits for 159 days of the year while we are sitting for only 92 days. Our neighbours in the United Kingdom did business in the House of Commons on 133 days in the last year for which figures are available. In Ireland, we cannot manage 100 days, even in a crisis year.

It is not too late for the Government to reconsider, to agree that Dáil business continue throughout the month of July and to resume at the beginning of September. Such a decision would allow valuable work to be done and would help restore the people's trust in their public representatives, which has been severely tested by recent events in the Mahon tribunal and by the poor Government leadership of the Lisbon treaty campaign.

Look at the multiplicity of issues that require to be addressed urgently. Last month saw the greatest increase in the live register in 40 years, with unemployment figures now in excess of 200,000, and serious problems are being created for hauliers, fishermen, coach companies, public transport, taxis and commuters in the sharp rise in the cost of petrol and diesel, with the further damaging impact on senior citizens and low income families of heating costs in the coming months of autumn and winter. Already disaffected groups are converging on Brussels for tomorrow's summit which should leave the Taoiseach in no doubt about their concerns when he arrives there tonight or tomorrow morning.

The rapid increase in inflation with the ever-increasing cost of groceries and basic food items for hard-pressed families in the supermarkets of Ireland is one of the other matters that needs urgently to be addressed. Another is the continuing crisis in our hospitals with ongoing cutbacks across the entire health service, particularly in our community health services. All Departments have been told to prepare for financial adjustments, a euphemism for savage cutbacks.

Three weeks ago the HSE announced the loss of 100 staff in Crumlin children's hospital. Temple Street children's hospital remains located in antiquated prefab buildings that are totally unsuitable for the treatment of children, yet no steps have been taken towards the construction of the national children's hospital on the Mater hospital site that has been designated for it. The accident and emergency crisis has remained unaddressed for over a decade with vulnerable sick and elderly people treated in a Third World environment. They are fearful and left sitting on chairs or lying on trolleys for extended periods of time waiting for a bed.

Some 40,000 primary school children are being taught in prefabs that are too cold in winter, too hot in summer and unhealthy at all times. Such prefabs are everywhere in my constituency of Dublin Central — ironically, the constituency of the former Taoiseach who has been a senior Minister or Taoiseach for the past quarter of a century. Gaelscoil Bharra, a bunscoil lán-Gaelach in Cabra, was established 13 years ago in prefabs. It is still in prefabs and generations of children in the area have been educated in the most appalling conditions. Toilets are backed up, buildings are falling apart and when it rains there are pools of water everywhere. This is certainly not cherishing the children of the nation equally.

The construction industry is on the verge of collapse and the Government has nothing to say. Four public private partnerships between the local authority and Mr. Bernard McNamara, a developer, have collapsed in my constituency, dashing the hopes of hundreds of tenants of Dublin City Council who were expecting new houses and new facilities for themselves and their children. The areas of Infirmary Road, O'Devaney Gardens, Sean MacDermott Street and Dominick Street are left bereft of the new developments. That is a crisis.

These are some of the multiplicity of issues that give rise to the crisis facing the country. These are the reasons we should demonstrate to the Irish people that we have their interests and concerns at heart and are earnestly dealing with them. We should do so by accepting the provisions of the Labour Party Private Members' motion and by working throughout the months of July and September to address these important critical issues to the life and well-being of the citizens of this country.

Photo of Jan O'SullivanJan O'Sullivan (Limerick East, Labour)
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The Labour Party is tabling this motion to extend the Dáil sitting at a time of great uncertainty and uncharted waters for the Irish people. It is not just to do with the result of the Lisbon treaty referendum, although many people voted against the treaty because they were unsure about the future and were worried.

It is a time of great uncertainty in the economy. I am not trying to add to any gloom and doom, but people out there are frightened. Older people who have previously dealt with difficult economic times remember what it was like to have to emigrate and to have high levels of unemployment. Younger people who have never experienced it are also worried because they do not know what the future holds. They do not know if they will be able to pay their mortgages next week or the following week, or if they will be given notice in their employment. In many cases, they are in uncertain jobs without permanency and they do not have any future guarantees.

At this time we need to give leadership in this Parliament. We need to show these people that we are concerned and that we want to do something about the situation. The last thing we need to do is go off on our summer holidays with so many issues not dealt with, with so much uncertainty and so many things that need to be done. I listened to positive proposals from the previous few speakers on the Government side of the House. However, these actions need to be taken with the leadership of Parliament and that is why we propose that we stay in session to address them.

I am particularly concerned about the construction industry. Having spoken to people who are working in that industry and who are very worried about the future, I do not get a sense that they are being engaged with on their future and that the One Step Up programme referred to by the Minister of State, Deputy Billy Kelleher, for example, is touching their lives. For example, I get no sense that there is an engagement by the local employment service, the local unemployed centres, local FÁS staff or local staff of the Department of Social and Family Affairs with people who are losing their jobs.

The Labour Party proposes, for example, that the school building programme, the hospital programme and the projects referred to by my colleague, Deputy Costello, and others, such as Kilfinnan national school just outside my constituency which has outdoor toilets and Gaelscoil Sáirséal which is in a condemned building and has been waiting for years for a construction programme, should be given the go-ahead and that we should direct our construction workers into positive activity that will deal with the needs there. The last thing we need to be doing is cutting back on the national development programme. We need to invest now in our schools and hospitals and other positive construction programmes.

There is a real fear of poverty. People are finding it difficult to balance their budgets. In a recent survey 37% of people stated they where struggling to pay utility and household bills.

In my constituency we have positive proposals for regeneration of the city but we have not been able to get the Taoiseach to commit to the capital funding required for those projects over the coming years. We need that commitment and that engagement. We need the Dáil to sit to address these issues.

In the area of health there are urgent problems. We sat in committee this morning with the Minister and Professor Drumm for approximately four hours and a variety of issues and concerns were raised.

The fair deal legislation is one of the three Bills from the Department of Health and Children that is listed for publication in this session. Not one of those three Bills has even been published, not to mind dealt with here in this Assembly. I urge that we sit until the end of July even if it is only to deal with the fair deal legislation. There are serious issues in that legislation which need to be addressed but we could deal with them in this Chamber in a democratic way and address the problems families have in meeting the costs of nursing homes which, in some cases, have gone up because of the promise that the fair deal legislation would be published at the end of last year and implemented in January. I urge that some of the €110 million allocated is provided to alleviate the hardship faced by families trying to pay for their loved ones in nursing homes. I welcome the fact talks are ongoing. However, this is the kind of issue which needs to be addressed in this Chamber.

We could do very useful work on practical issues which are of concern to people. I pointed to three Bills in my area of health but I am sure my colleagues could point to legislation in their areas. We must show the people that we, as their national representatives, are aware of the real concerns and worries they are experiencing.

There is almost stagnation in many areas of the economy. We must provide positive responses which we are hearing in this Chamber. However, we will not be able to do anything about them if we are gone from this Chamber early in July and if we do not return until October.

Photo of Joanna TuffyJoanna Tuffy (Dublin Mid West, Labour)
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We debated the outcome of the Lisbon treaty referendum today and I wish to bring in some elements of that debate and how they relate to this Labour Party proposal. There is a relationship between the European democratic deficit and the democratic deficit at home. Although the full results of a poll of 2,000 people carried out by the European Commission and mentioned in yesterday's Irish Independent are not available, they indicated that the vast majority of women voted "No" to the Lisbon treaty and that young people voted "No" by a margin of two to one.

There appears to be a huge disconnect between voters and what the majority of politicians and public representatives were campaigning for in terms of the outcome of this referendum. My colleague, Deputy Joan Burton, raised the issue of the disconnect among women voters and how that relates to how we, in Leinster House, operate.

When I was canvassing for the Lisbon treaty, many concerns were raised by constituents on why they had reservations about the treaty. However, a common theme, especially among those who might have voted "Yes" or "No" — everyone knows there were reluctant "Yes" and "No" voters — was a fear that too much power was going to Europe. People were not quite clear about what they meant by that. It was very difficult to argue that the Lisbon treaty would make Europe more democratic.

We need to do all the things we did before, such as having a National Forum on Europe and discussions in Brussels, but in the context the democratic deficit at national and European levels, we need to determine what powers we want to exercise here. We need to have such a debate in this House. The public is insecure about powers going to Europe. What that really means is that they are insecure about the powers we exercise here. We need to involve society in that debate and address the issue at local and national levels.

I read the Lisbon treaty, which I got as a supplement with The Sunday Times. I spent a day reading through it. It refers to subsidiarity, how decisions that are best taken at local and national levels should be taken here and about protections in that regard for national parliaments. There are powers which people do not want to go to Europe. They do not want a person they do not know dealing with issues. We need to figure out what those issues are and ensure we have more powers. We need to exercise better local democracy. That would do much in terms of people's insecurity about allowing Europe to make certain decisions. People want to know that decisions taken here would be genuinely debated and that there would be engagement.

Members of the Oireachtas and members of local government have fewer powers. The boundaries for the local elections were issued yesterday but they do not deal with the fact there is a councillor for approximately 1,000 people in some parts of the country but that in Dublin, there is a councillor for approximately 10,000 people. That is the reason so many young councillors on Dublin City Council, for example, have resigned their seats. They cannot cope with the workload and they are too remote from their electorate. They are doing jobs for which they are getting part-time pay and it is not sustainable. We are losing bright and, in many instances, young men and women councillors because we have not dealt with that problem.

This motion raises the issue of sitting days. Some six Bills had been passed so far in 2008. I looked at the past ten years in which 40 to 50 Bills were passed each year. There is no way we will reach that target this year at the rate we are going. Many Bills need to be dealt with. We have not transposed the Public Participation Directive into domestic legislation. Therefore, we are not dealing with the need for public participation and engagement in very important decisions in regard to the environment, local government and so on.

There is no urgency about how we will deal with the outcome of the Lisbon treaty referendum. I was elected a Senator in 2002 and the Dáil sat on 4 September 2002 and the Seanad sat on 12 September 2002 to deal with the outcome of the Nice referendum and to deal with legislation. We passed the final Stages of the European Union (Scrutiny) Bill which was a Labour Party initiative. On 7 June 2001, the Nice treaty was rejected and on 20 June 2001, the European Union (Scrutiny) Bill was initiated. That is how quickly we acted. In 2002, we finished on 11 July and we were back on 4 September 2002. We need that type of urgency and to ensure there is more engagement with the public in the civic and political process at local, national and European levels.

Photo of Seán SherlockSeán Sherlock (Cork East, Labour)
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My sojourn here for the past year has been one during which there has been a dearth of legislation and a proliferation of statements on everything under the sun. On a personal level, I could say I have enjoyed the experience but I expected when I came to this House that I would be up to my oxters in legislation and debate but the contrary has been the case. I sense a malaise and a lack of appetite for the issues which relate to the governance of this country from the Government side of the House.

Today we debated the Lisbon treaty referendum and I, as a Deputy for Cork East, had five minutes to discuss and put forward the ideas I had but I could not do so in the time available. The time available in this House for political discourse and debate is becoming shorter all the time. That sends a message to the people that politicians could not care one fig about the issues relating to their everyday lives.

We are now going to extend this session by one week. That will feed into that increasing cynicism which exists beyond these walls about political discourse in Ireland. The Labour Party has many ideas and positive contributions to make in working with this Government, in constructively opposing ideas which this Government puts forward and in offering better solutions, if it can. However, the space for discourse and debate has been cut to shreds. That is what exists in the country at present and it needs to be addressed.

I have a particular competence as Labour spokesperson for food provision and agriculture. I have ideas that I could put forward that would, I hope, lead to expanding the base for agricultural production and for dealing with the issues of increased food prices. However, I am not able to do this because the Government and the leaders of the country will not allow me the opportunity to do so, thereby denying me the opportunity to represent the people who put me here. This House has primacy in terms of its democratic function but this is not recognised. The Government is running scared from any kind of debate and is not facing up to its responsibilities. It needs to start doing so straight away.

8:00 pm

Photo of Jack WallJack Wall (Kildare South, Labour)
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There have been many items raised under this Labour Party motion. I am obliged to discuss the local problems that arise in my constituency. The constituencies in County Kildare are probably the fastest growing in the country. However, there is a comparison to be made and there is also the unfortunate and sad situation whereby the unemployment figures more than match the rise in the population. We can measure this in three areas in County Kildare using the figures of the Department of Social and Family Affairs and the Central Statistics Office.

Remarkably, between 2004 and 2008, there was a significant increase in unemployment in these three areas. I am not scaremongering, just providing facts. The Minister can talk of scaremongering but it is not possible to dispute the facts presented. In the Athy centre for the unemployed, the facts are that in 2004, some 873 people were on the live register, while in 2008 some 1,223 people are on the register, an increase of 43%. In Maynooth, 1,573 people were on the live register in 2004 while in 2008 there are 2,147 people, an increase of 36.5%. In Newbridge, the biggest town in the constituency, 2,299 people were on the live register in 2004, but in 2008 there are 4,213 people, an unbelievable increase of 86.7%. These are Department of Social and Family Affairs figures.

I wish to compare these increases to the efforts that have been made to counteract them. The only means open to me to do this is by way of parliamentary questions. I have put questions to the Minister for Enterprise, Trade and Employment over a long period, when Deputies Micheál Martin and Mary Coughlan held the post, and previously. The constituencies in County Kildare are probably the fastest growing in the country. Given the unemployment figures and IDA Ireland itineraries of visits to the constituency during that period, the extent to which the Government is responsible to the people of Kildare is revealed starkly. During that time, IDA Ireland visited County Kildare with itineraries on three occasions — twice in 2003 and once in 2007. This compares unfavourably to any other constituency, except for County Kilkenny which it did not visit for whatever reason. IDA Ireland visited the Leas-Cheann Comhairle's constituency eight times, three times, twice and once in each of these years, which is not too bad.

There are four IDA Ireland sites in County Kildare which it wanted to sell. It did not visit these sites; there was no need as it was not going to do anything with them. It wanted to sell them to the local authority. I agreed with this as it would lead to the local authority owning four business parks in the county in which it could develop small and medium enterprises. However, IDA Ireland purchased the sites in 1973 for a minimal figure and then wanted market prices when it came to selling them. It wanted prime prices for the lands in Castledermot, Athy, Monasterevin and Kildare town. The local authorities could not get the funds to purchase these lands and the opportunity was lost to counteract the rise in unemployment figures. IDA Ireland does not want to know about the problems. However, it had a significant interest in County Carlow some four miles from Castledermot and 11 miles from Athy.

I have seen the former Minister for Enterprise, Trade and Employment, Deputy Martin, wave his flag and mention all the times he visited County Carlow and the wonderful work ongoing there, yet he would not visit the fastest growing constituency in the country. In reply to a parliamentary question, the Minister promised to meet me to discuss the figures and go through them to see what could be done, which must have been a mistake by his secretary because it was never followed through. The Minister, Deputy Micheál Martin, is now gone from that Department and the meeting never took place. The former Minister forgot about it but said on the last occasion I raised the matter that he was in County Kildare. However, he did not meet me to discuss the figures as he said.

We face a degree of uncertainty I have not previously seen. I could discuss all night the very sad cases that have been brought to my attention in recent weeks. People are beginning to ask an inevitable question, and there is not one Deputy who will not be asked it in the next number of weeks if it has not already happened. People will ask Deputies to make representations to the local authority requesting it to buy out the mortgage on their home because they are no longer in a position to buy. I guarantee there is no Senator or Deputy in the Houses who will not be asked that question. The Minister for Enterprise, Trade and Employment is ignoring the situation. I cannot understand how IDA Ireland could visit one county numerous times, yet not visit a fast growing county such as Kildare at all.

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
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A general election is the reason.

Photo of Jack WallJack Wall (Kildare South, Labour)
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If it is a Government direction, the latest Minister, Deputy Mary Coughlan, says it is IDA Ireland policy and that the Minister only provides a direction to ensure there is fair play. However, it does not seem to come our way, unfortunately.

I have raised the matter of trade missions with various Ministers and the Taoiseach. I agree there should be trade missions and I see much merit in them. However, I wonder how they are constituted. It always seems to be a big businessman who accompanies the mission. I never see a county manager or the leader of a county enterprise board travel. It is always the successful businessman who decorates the table when the Minister travels. I wonder how counties Kildare and Kilkenny create interest and generate employment in the area. County Kildare borders a BMW region, including counties Offaly and Laois. This means there is a battle to overcome, yet we get no help from the people who should provide it, namely, IDA Ireland and the Minister.

I welcome the fact the Joint Committee on Enterprise, Trade and Employment, under the chairmanship of my colleague, Deputy Penrose, intends to visit Athy. The committee's decision represents a recognition of the problems in the town. We will be able to make the case for Athy at that forum. There is an urgent need for IDA Ireland officials and the Minister to make a genuine effort to give fair play to counties such as Kildare which do not appear on the itineraries that are drawn up when they visit various locations.

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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I strongly support the amendment to the Labour Party motion that has been moved by the Government parties. I reject the suggestion that the Government is not taking action to deal with the difficult economic circumstances in which we find ourselves. Nothing could be further from the truth. Over the past 11 years, Governments led by my party have overseen unprecedented economic growth and development in this country. We have no intention of doing anything to jeopardise the achievements we have secured. I do not doubt that Ireland, like other small trading economies, faces a challenging environment. The economic climate has deteriorated with unforeseen speed in the past six months.

Photo of Emmet StaggEmmet Stagg (Kildare North, Labour)
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What does the Government intend to do about it?

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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The risks identified by my predecessor on budget day have materialised. Growth will be lower than projected. We already see the impact of this on tax revenues. Recent unemployment figures are of concern, although they continue to be among the lowest in the EU. We are still creating jobs. IDA Ireland remains ambitious in its targets for attracting investment to this country. The creation of 168 high skilled research and development jobs in knowledge intensive industries was announced this week. It is important that we create jobs in such sectors of the economy. It is clear that the next two years will be challenging. We must take the right decisions now in response to the changed circumstances if we are to secure the more favourable growth prospects that many, including the ESRI, predict for the medium term.

I welcome Deputy Burton's contribution to this debate last night. She said we can move into a period of growth in two or three years' time. I am glad she acknowledged the underlying good health of the economy, which makes us uniquely well placed to weather this storm. I remind the House that we are in this healthy position because of the prudent action we have taken over the past decade or more. Given that most of the factors weighing on our short-term prospects are external, our priority must be to ensure we are in a position to benefit from the global recovery when it comes.

I reiterate the Government's commitment to improving competitiveness, through the implementation of appropriate policies which will result in sustainable economic development in the years ahead, while maintaining a commitment to protect the poor and vulnerable in society. As Deputy Burton pointed out last night, we are responsible for ensuring that our policies protect the most vulnerable in an economic downturn. We will have to work to ensure that those who have become unemployed on a short-term basis do not move into long-term unemployment. We must ensure that those losing their jobs in one sector have the skills and training to obtain employment in expanding sectors of the economy. That is why the programme of investment in education and skills, which includes a commitment to life-long learning, is so important. We must ensure we restore our competitiveness and boost our productive capacity, thereby generating employment opportunities.

During last night's debate, Deputies mentioned the prospect of low economic growth combining with rising inflationary pressures, most notably from increases in the prices of commodities such as oil and food. None of us wants such previous economic experiences be revisited. Therefore, we must ensure that the externally driven price increases we are experiencing are not exacerbated by attempts to secure compensation through wage demands which would lead to a further deterioration in competitiveness, with implications for future jobs and growth. In this regard, the Government will continue to work with the social partners.

The Government recognises the concerns that arise from recent increases in fuel price levels. However, the increase in the price of fuel, including diesel, is not tax-driven — it is an international phenomenon that affects all countries and all sectors of society and the economy. According to recent EU data, Ireland has the ninth lowest petrol prices and the 12th lowest auto diesel prices of the 27 EU member states. The view of my ECOFIN colleagues is that any attempt to compensate ourselves for higher fuel prices would send the wrong signal to consumers and oil producers. The Government has put in place a range of measures to help those on low incomes who have the greatest need. The national fuel scheme, which has doubled since 2005, has benefited from a widening of its eligibility thresholds. The households benefits package, which includes a free electricity or gas allowance, has also been stepped up. The supplementary welfare allowance is available to assist people in exceptional circumstances who have special heating needs.

The Exchequer returns at the end of May showed that Government expenditure was broadly on target for the first five months of 2008. As I said, the tax revenue position has weakened from that envisaged on budget day. However, this has to be considered in the context of the strong position of the public finances. I refer to our low debt to GDP ratio, for example. The overall economic and fiscal prospects for the current year are regularly monitored in my Department. Further comment will be made in the context of the Exchequer returns at the end of June, as we will then have fiscal information for the first six months of this year. I assure the House that, during the summer break, the Government will continue to focus on the economic and social issues facing the country. I do not doubt that this subject and other subjects will be discussed when the House sits for an additional week in early July. The Government will continue to provide a framework of macroeconomic and budgetary stability. We will ensure that we take the right course of action for all concerned.

Photo of Willie PenroseWillie Penrose (Longford-Westmeath, Labour)
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I would like to share time with my party leader, Deputy Gilmore.

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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Is that agreed? Agreed.

Photo of Willie PenroseWillie Penrose (Longford-Westmeath, Labour)
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I am pleased to make a contribution to this debate. In the short time available to me, I will make passing reference to the confluence of events that are threatening Ireland's competitiveness. For the first time in many years, our economy is entering a period of stagflation. My colleague, Deputy Burton, spoke at great length, with her usual prescience and accuracy, about the many serious social and economic issues this country faces at present.

The Government argues that the sharp increase in inflation over the past few months is outside its control. I accept that is the case for some products, such as oil — some inflation is domestically generated — but increases in charges for Government services, for example, have resulted from Government decisions. Recent increases in doctors' fees, dental charges and health insurance costs have hit people on lower incomes hardest. The same can be said about increases in food costs, such as the 17% increase in the price of bread and the 30% increase in the price of milk over the past year. Woe betide us all if the ESB gets its way and electricity costs increase by 30%.

The Government can do something about the failure of retailers, particularly the large multiples, to pass on to consumers the benefits of the falling value of sterling and the US dollar against the euro. The increase in the value of the euro is making our exports more expensive on world markets. We should be benefiting from a decrease in the price of imported consumer goods. If the Minister for Finance, Deputy Brian Lenihan, shopped for clothes in the usual retailers, he would see evidence of blatant profiteering on the part of retailers. In most of the multiple outlets, clothes are priced in sterling as well as in euro. If one converts the sterling price to euro, it is clear that the euro price is significantly higher. The National Consumer Agency urgently needs additional powers to end such profiteering. Surveys are no use. My grandmother — God be good to her — did that type of thing.

An aspect of the phenomenal growth of the past 15 years that is not often discussed is that most of that growth was due to increased inputs of labour and capital. In a sense, we were catching up after a decade of stagnation. It is well established that long-term growth in advanced countries depends on increases in productivity. However, productivity growth has slowed down in Ireland over the past five years. Reports from the National Competitiveness Council have shown that output per unit of input has been growing very slowly.

As we no longer have control over exchange rate policy or monetary policy — we have limited opportunities to set fiscal policy — we must rely on the competitiveness of our exports for growth. Competitiveness is based on productivity. If we are to increase productivity, we must focus on the education system. Despite the economic downturn, spending on education, particularly primary education, must be increased. We take too much comfort from surveys that show that Irish teenagers perform well in international comparisons of literacy. We ignore the results of surveys that show a mediocre performance in maths and science. If we are to produce workers for the so-called knowledge economy, we need to increase our spending on education. We need to ensure that all pupils achieve their potential. We need to accelerate the school building programme and to reduce class sizes. We need to end the disgraceful situation whereby every September, pupils who are ready to start primary school do not know if a place will be available for them.

I wish to explain why additional sitting weeks are needed. I will refer to a local issue as an example of the mean-spirited penny-pinching on the part of the Government and its various quangos, which generally attempt to make budgetary savings at the expense of ordinary people, particularly those who are most vulnerable. The HSE has decided to close a day centre at St. Mary's Hospital, Mullingar, for a six-week period from 26 July to 2 September 2008. This decision, which is disgraceful by any standards, is unworthy of any public body. It is no way to treat elderly people, many of whom are from rural areas. In effect, elderly people are being denied one of the few comforts they enjoy as part of an attempt to save coppers. This service, which is operated once a week, involves the collection of elderly people from their homes and their transportation by bus to the day centre. These trips are the highlight of the week for the people in question, many of whom live alone in isolated areas. The service is important not only as a social outlet but also as a means of providing facilities and services. For example, chiropodists, physiotherapists and hairdressers are available at the centre. Each day 40 people from different parts of County Westmeath are brought to the centre for a hot, nourishing meal, to have a chat and to play cards, bingo and so on. This is the only human contact some of these people have all week. The closure of this centre for six weeks will leave them isolated.

The day care centre also provides relief for families of the elderly who can be exhausted from caring for their elderly relatives day in and day out. The attendance of their relatives at the day care centre provides them with some respite. St. Mary's is a centre of excellence with brilliant, dedicated staff, yet this service which is provided daily from 10 a.m. to 4 p.m. could well be closed for six weeks. Is this the thin edge of the wedge?

Many of these people are voiceless and we have a duty to speak up for them. The Labour Party will unashamedly stand firmly on the side of these people. We must give them a voice. There is a great deal of anger in respect of this decision. I have never known people to be so upset and angry. They are extremely animated about this short-sighted and foolish decision. I ask that the Minister for Finance contact the HSE in the mid-Leinster region to request it to reverse the decision to close this centre for any period. It is foolhardy in the extreme and it amounts to a rejection of people living in isolated areas.

This House, by way of legislation, gave authority to the HSE in respect of the health repayments scheme. The manner in which some people are being treated under this scheme is a disgrace. People duly entitled to payments are not getting them. A well educated person, known to the Minister, whose wife applied on behalf of her mother for such a payment on 18 March 2005 received a letter on 18 April 2008 stating the matter is still under review despite her having submitted every document sought, including two affidavits, and answered every query raised. The Minister would be shocked to learn that the wife of the man concerned is being treated in this manner. These people are being continually fobbed off with letters from administrators. I have sought an investigation of the matter by the Minister for Health and Children. We must ensure people are repaid money unjustly taken from them. I will give the Minister the personal details of this matter.

Photo of Eamon GilmoreEamon Gilmore (Dún Laoghaire, Labour)
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I thank all Members who contributed to the debate tonight and last night. The motion proposed by the Labour Party is that this year, given the enormous problems into which the country is now facing, Dáil Éireann should not go into recess for three months but should continue to sit up to the end of July and resume again in early September.

In response to the motion, the Government introduced an amendment the effect of which is to extend the Dáil session by just one week, a totally inadequate response to the Labour Party motion. It is clear from the Government amendment tabled yesterday that the original intention was that the House would sit for a couple of days to take statements on the national development plan. As a result of this debate, it now appears the House will meet for an extra week to take normal business, including Question Time, the Order of Business and so on.

I note that the Green Party was quick off the blocks to claim credit for an achievement in Government. Yesterday, it issued a press release to the effect that it had achieved three additional Dáil sitting days.

Photo of Willie PenroseWillie Penrose (Longford-Westmeath, Labour)
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It is better than the scandals.

Photo of Eamon GilmoreEamon Gilmore (Dún Laoghaire, Labour)
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I compared this with the Green Party's manifesto which stated it would seek to double the number of Dáil sitting days. This would amount to approximately 180 sitting days per annum. By my calculations, at the rate of three days extra per year, the Green Party commitment would be met in or around 2038, by which time we should be carbon neutral.

Photo of Ciarán LynchCiarán Lynch (Cork South Central, Labour)
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Towards 2016.

Photo of Eamon GilmoreEamon Gilmore (Dún Laoghaire, Labour)
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The Labour Party has long argued that the summer recess is far too long. Against the background of the current situation in which the country finds itself, namely, the economic challenges we face, the fact that unemployment has now reached more than 200,000, an 8% increase in food prices in the past year, record high prices for petrol and diesel and associated problems of fuel poverty, the public will find it impossible to understand how the Government could consider shutting down the House for 11 or 12 weeks.

As I pointed out last night, this Dáil sits for far fewer days than most national parliaments. By comparison, the House of Commons sits for more than 130 days and the US Congress sits for almost 160 days while the Dáil sits for just over 90 days in plenary session. We do not need to make international comparisons to make the case for longer Dáil sittings and to oppose the closing down of our national Parliament for three months in the middle of the year. We need go no further than our Constitution, Article 28.4.1 of which states that the Government shall be responsible to Dáil Éireann. However, the Dáil can only fulfil its constitutional duty of holding the Government to account if it is in session.

Fianna Fáil Ministers in particular, many of them now in office for 11 years, appear more resentful each day at having to come into the House to answer questions and to account for their decisions, actions and lack of action. They seek all of the time to minimise the number of Dáil sitting days and to maximise the recesses. When the House elects a Taoiseach and transfers from this House, the national Parliament, executive authority for the running of the State, it is not implied that the Government can use its position and its majority to effectively suppress the role of our national Parliament in defiance of the Constitution.

The issue of the number of days which the Dáil sits and the capacity of the national Parliament to hold the Government to account is not a political issue and it does not relate to matters requiring to be addressed this year and next year. This issue goes to the heart of our Constitution. Many people have commented on the number of tribunals established over the past two decades. We will find again and again that these tribunals were set up because the role of the national Parliament, Dáil Éireann, has been suppressed and over-ridden by the Executive. This is happening in respect of issues such as the behaviour and performance of the Garda Síochána in certain parts of the country, the conduct of political leaders or the failure of some areas of our public services to deliver to the public.

Elected representatives of the people are being denied their right under the Constitution to hold Government to account. It is repeatedly denied to us by Government in a range of ways, including, for example, in respect of the manner in which questions are transferred and unanswered and by the establishment of bodies which relieve Ministers of their obligation to answer questions in this House. Above all, it is being denied to us through the shutting down by Government of the national Parliament for three months. That is not constitutional. Government is abusing its majority and its Executive role by coming into this House year after year and effectively closing down the national Parliament, denying Members their constitutional role.

The Government in addressing the economic situation during the next three months — it has the figures and knows the state of the Irish economy and public finances — will consider where cuts will be made, what services will or will not be provided, what schools will be built and what hospital projects will go ahead. It will make those decisions in the absence of its requirement to account to Dáil Éireann as provided for in the Constitution. The constitutional role and responsibility of Dáil Éireann is being denied and frustrated by a Government that does not wish to appear to account. This is an issue about our Constitution. It is about defending the constitutional rights, role and responsibility of the national Parliament. I call on every individual Member of Dáil Éireann on this occasion not to answer the drum of the Whip but to answer the call of the people who sent them here and to assert their constitutional right to have the Government account to this House in July and September and over the summer months, at least for a year, when we have serious problems to address.

Deputies:

Hear, hear.

Amendment put.

The Dail Divided:

For the motion: 71 (Dermot Ahern, Michael Ahern, Noel Ahern, Barry Andrews, Chris Andrews, Seán Ardagh, Bobby Aylward, Joe Behan, Niall Blaney, Áine Brady, Cyprian Brady, Johnny Brady, John Browne, Thomas Byrne, Dara Calleary, Pat Carey, Niall Collins, Margaret Conlon, Seán Connick, Mary Coughlan, John Cregan, Ciarán Cuffe, Martin Cullen, John Curran, Noel Dempsey, Jimmy Devins, Timmy Dooley, Frank Fahey, Michael Finneran, Michael Fitzpatrick, Seán Fleming, Beverley Flynn, Pat Gallagher, Paul Gogarty, John Gormley, Noel Grealish, Mary Hanafin, Seán Haughey, Jackie Healy-Rae, Máire Hoctor, Billy Kelleher, Peter Kelly, Brendan Kenneally, Michael Kennedy, Tony Killeen, Séamus Kirk, Michael Kitt, Tom Kitt, Brian Lenihan Jnr, Conor Lenihan, Martin Mansergh, Micheál Martin, Jim McDaid, Tom McEllistrim, Finian McGrath, Michael McGrath, John McGuinness, M J Nolan, Éamon Ó Cuív, Seán Ó Fearghaíl, Aengus Ó Snodaigh, Darragh O'Brien, Charlie O'Connor, Batt O'Keeffe, Ned O'Keeffe, Mary O'Rourke, Peter Power, Dick Roche, Eamon Scanlon, Noel Treacy, Mary White)

Against the motion: 60 (Bernard Allen, James Bannon, Pat Breen, Tommy Broughan, Ulick Burke, Joan Burton, Joe Carey, Deirdre Clune, Paul Connaughton, Noel Coonan, Joe Costello, Simon Coveney, Seymour Crawford, Michael Creed, Lucinda Creighton, John Deasy, Jimmy Deenihan, Andrew Doyle, Bernard Durkan, Damien English, Frank Feighan, Charles Flanagan, Terence Flanagan, Eamon Gilmore, Brian Hayes, Tom Hayes, Michael D Higgins, Phil Hogan, Brendan Howlin, Paul Kehoe, Ciarán Lynch, Pádraic McCormack, Shane McEntee, Joe McHugh, Liz McManus, Olivia Mitchell, Denis Naughten, Dan Neville, Kieran O'Donnell, Fergus O'Dowd, Jim O'Keeffe, Brian O'Shea, Jan O'Sullivan, Willie Penrose, Ruairi Quinn, Pat Rabbitte, James Reilly, Michael Ring, Alan Shatter, Tom Sheahan, P J Sheehan, Seán Sherlock, Róisín Shortall, Emmet Stagg, David Stanton, Billy Timmins, Joanna Tuffy, Mary Upton, Leo Varadkar, Jack Wall)

Tellers: Tá, Deputies Pat Carey and John Cregan; Níl, Deputies Emmet Stagg and Paul Kehoe.

Amendment declared carried.

Question, "That the motion, as amended, be agreed to," put and declared carried.