Dáil debates

Tuesday, 10 February 2009

4:00 pm

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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It is proposed to take No. 8, motion re referral to Select Committee of proposed approval by Dáil Éireann of the Finance Act 2004 (Section 91) (Deferred Surrender to the Central Fund) Order 2009; No. 9, motion re referral to Select Committee of proposed approval by Dáil Éireann of the terms of the Stabilisation and Association Agreements between the European Communities and the Republic of Montenegro and the Republic of Bosnia and Herzegovina; No. 17, Nursing Homes Support Scheme Bill 2008 — Second Stage (resumed); and No. 18, Employment Law Compliance Bill 2008 — Second Stage (resumed). It is proposed, notwithstanding anything in Standing Orders, that Nos. 8 and 9 shall be decided without debate. Private Members' business shall be No. 53, motion re Hospital Services.

Photo of John O'DonoghueJohn O'Donoghue (Kerry South, Ceann Comhairle)
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There is one proposal to put to the House. Is the proposal for dealing with Nos. 8 and 9 agreed?

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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With regard to the proposal on No. 8, this is the arrangement where each year a certain proportion of money that is not spent under capital budgets is allowed to roll over into the next year. The level of information we get on the capital budgets and their performance against criteria of performance is hopeless. The Dáil is in the dark as to whether projects are on time, ahead of time, behind time or on budget. If we are taking this vote on a nod, we should have proper reports on how each project is progressing, whether it is meeting its financial targets and its real performance targets. Otherwise, we are going through a charade here.

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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As the Deputy said, this is a legal requirement regarding the capital carryover. It represents approximately 1.4% of the total revenue position for voted capital in 2008 being brought into 2009. As the Deputy is aware, there are arrangements for the Joint Committee on Finance and the Public Service at any time to invite before it the various authorities which are responsible for major capital projects, including the NRA with regard to roads, which thankfully are in all cases now coming in before time and within budget, and also other areas of activity, whether with regard to schools and the Department of Education and Science. All of these capital projects are for consideration by the committees at any time during the year.

An Ceann Comhairle: I take it the arrangements are agreed to.

Photo of Caoimhghín Ó CaoláinCaoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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No. I had raised a question with regard to the Order Paper. Particular to the Order Paper is the rescheduling once again of the resumed Second Stage of the Nursing Homes Support Scheme Bill 2008. Before agreeing to the Order of Business, I wish to know whether, if Second Stage concludes today, it is intended to proceed immediately to Committee Stage. If that is the case, by what means will the Government advise the Opposition parties of its intentions in regard to funding and the actual implementation — the working — of the proposals contained in the Bill? At this point in time, we do not have that specific detail. In terms of preparation for Committee Stage, which is critical in terms of amendments, we need to be informed of how the Government intends to implement and fund this, and if its intention is to achieve both of those in 2009. Will the Taoiseach clarify the position?

Photo of John O'DonoghueJohn O'Donoghue (Kerry South, Ceann Comhairle)
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Can the Taoiseach be of assistance to the Deputy?

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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Funding was provided in the Estimates this year to begin this scheme. The question of taking Committee Stage after Second Stage is a matter for the Whips. There is usually a two-week interval for Members to prepare amendments if they wish. I am not aware there is any particular problem with the——

Photo of Caoimhghín Ó CaoláinCaoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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There is a serious deficit of information in terms of preparing for the further engagement on this legislation.

Photo of John O'DonoghueJohn O'Donoghue (Kerry South, Ceann Comhairle)
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I take it the arrangements for dealing with Nos. 8 and 9 are agreed to. Agreed. I call Deputy Kenny on the Order of Business.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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When is it intended to publish the National Pensions Reserve Fund (Amendment) Bill to give effect to the recapitalisation programme for the banks? It is to be published during this session and in view of its urgency the Taoiseach might be able to indicate when it is expected to bring it before the House.

With regard to the comments by the Taoiseach on the repossession of houses and the requirements for a compulsory scheme to protect house owners, and to give legal effect to that, will he indicate when it is expected that a Bill will be drafted and submitted to the House?

Has the Minister for Communications, Energy and Natural Resources finalised his position with regard to the replacement Bill for the foreshore Bill, which deals with offshore renewable energy development, and which was drafted under the chairmanship of Deputy Barrett on the Joint Committee on Climate Change and Energy Security? The Minister was to make some adjustment if he was not prepared to accept the full Bill. This is something on which we must move as a matter of urgency. The Taoiseach might be prepared to indicate what is the position of Minister.

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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The heads of the first Bill referred to by the Deputy were cleared last week and that work is proceeding as a matter of priority.

On the question of the code of practice regarding mortgage issues being put on a statutory basis, that is being prepared and will be brought forward. The Financial Regulator is finalising arrangements in regard to how it will work and it should be available shortly.

On the question of the foreshore Bill, I indicated to the House last week that the Minister had already been in correspondence with the committee concerned and had indicated his preparedness to work with it and the Department of the Environment, Heritage and Local Government to see in what way some of their ideas might be incorporated in terms of the work he is undertaking.

Photo of Eamon GilmoreEamon Gilmore (Dún Laoghaire, Labour)
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I want to ask about two Bills. The first is the Bill to give effect to the so-called pensions levy. Will the Taoiseach tell the House when that Bill will be introduced in the House and what is his timetable for its enactment? Can the Taoiseach tell us if the heads of the Bill have been approved by the Government and, if so, will the Government publish them? There is much uncertainty as to what exactly the Government is proposing in regard to this levy, to what incomes it will apply and from what date it will apply. Will Taoiseach give the House the information in this regard?

Second, the Minister for the Environment, Heritage and Local Government has announced there will be spending limits for the local elections this year and that they will apply for a period of 60 days before the local elections, which means they will apply from 5 April or thereabouts. I welcome this because it is something the Labour Party has been advocating for some time. The limits announced are not quite as low as the Labour Party would have liked but, in any event, I welcome the fact they have been announced. There is a need for legislation to give effect to this and presumably this will have to be passed in good time before 5 April, when the limits will apply. Will the Taoiseach tell us when the legislation will be published and introduced to give effect to the spending limits?

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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As the Deputy said, the decision on the limits was taken today by Government so the legislative work will now begin and will be conducted in such a way as to make it effective for the forthcoming local elections this year. The intention would be to introduce it in a timely manner.

With regard to the statutory arrangements being put in place for the pensions levy, the heads of the Bill were considered by Government today. It is intended that it will come before Cabinet again very quickly, be published, brought to the House and enacted as a matter of urgency, because it is important it is enacted quickly. We intend that it would be effective from next month.

Photo of Eamon GilmoreEamon Gilmore (Dún Laoghaire, Labour)
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Do I take from that reply that the heads of the Bill have not yet been agreed by the Government? Given what the Taoiseach said on the agreement of the heads of the Bill, when is it likely the detail of its contents will be agreed by the Government and when is it likely to be published? I suggest to the Taoiseach that when the Government has approved the heads of the Bill, the heads themselves should be published so the maximum of information is available at the earliest possible time as to what is intended.

Finally, will the Taoiseach clarify the issue about the date? From when will the pension levy apply? Will it apply from a future date following the enactment of legislation or from the date it is announced in the House? From when will it apply?

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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When the legislation is published that date will become clear. My indications are that it will be from next month onwards.

Regarding the Bill, the Minister for Finance attended an ECOFIN meeting today. The heads of the Bill were approved by the Cabinet and the Minister for Finance will revert next week with more detail.

Photo of Caoimhghín Ó CaoláinCaoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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The Taoiseach indicated last week that legislation would be introduced to facilitate proposals regarding the early childhood supplement. Can the Taoiseach indicate exactly when that legislation will be published and when it will be introduced to the Dáil? This legislation was signalled, legislation for the pension levy has been indicated, and other legislation is expected that was not part of the legislative programme put before Members a little over two weeks ago. This is our third week back in the Dáil. Many changes to the programme are now anticipated in the coming period. Would it not be appropriate to publish a supplementary legislative programme as a result of all these newly signalled measures the Government intends to introduce?

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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No, I do not agree. I do not believe we require a supplementary list. The legislative changes that must be brought about as a result of last week's announcement will be incorporated in one Bill. The early childhood supplement legislative changes will be incorporated in the Bill to which I referred in answer to Deputy Gilmore.

Photo of Liz McManusLiz McManus (Wicklow, Labour)
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Will the Taoiseach explain the mystery of the fisheries (amendment) Bill? A Bill is proposed to get rid of the regional fisheries boards. For the fourth time, elections to the regional fisheries boards have been deferred. There is a tight timeframe and my understanding was that before Christmas the plan was to fast-track the legislation. Now, everything has gone quiet. The heads of the Bill have not yet been agreed at Cabinet. What is going on? What is the problem?

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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I am not aware there is any problem. It will probably be enacted later this year.

Photo of Liz McManusLiz McManus (Wicklow, Labour)
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Probably?

Photo of Pat RabbittePat Rabbitte (Dublin South West, Labour)
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I refer to the Bill to implement the pension levy. Has the Taoiseach given regard to the torrent of correspondence sent directly to his office, only a fraction of which, I suspect, has been copied to us? Has the Taoiseach given any regard to alleviating the burden on people on modest and low incomes, given the detailed personal histories outlined in many of those e-mails, before the Bill is published?

Photo of John O'DonoghueJohn O'Donoghue (Kerry South, Ceann Comhairle)
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We cannot go into such detail, but perhaps the Taoiseach could provide an indication.

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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The legislation will be introduced to the House and that will be an opportunity for everyone to discuss their views. The levy is structured in such a way that those on lowest incomes pay at lower rates than those on higher incomes.

Photo of Olwyn EnrightOlwyn Enright (Laois-Offaly, Fine Gael)
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I am sure the Taoiseach is aware of the substantial queues in social welfare offices throughout the country and the knock-on effect this has had on the community welfare service. The Minister for Social and Family Affairs is distancing herself from responsibility for the community welfare service, which is currently vested in the Minister for Health and Children, Deputy Mary Harney, and the HSE. However, the Government and the Taoiseach might recall we enacted the Social Welfare and Pensions Act 2007, which transferred responsibility for this service from the HSE to the Department of Social and Family Affairs. Is this still Government policy? When will the commencement order be signed, or has the Government changed its mind on this matter?

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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It is hoped to have that resolved sometime during the course of the year, hopefully by the middle of this year. However, there are industrial relations issues to be addressed.

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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I, too, refer to the pension levy. We are all receiving large volumes of correspondence on the matter. Will the Taoiseach clarify in advance of the publication of the Bill if all salary payments, including payments not reckonable for pension purposes, are to be levied?

Photo of John O'DonoghueJohn O'Donoghue (Kerry South, Ceann Comhairle)
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We cannot go into that now.

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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This is a key point for industrial and outdoor civil servants. They pay for a statutory old age pension. It appears from what the Minister for Finance is saying that it will be levied on gross pay, even though a good deal of pay is not reckonable for pension purposes. These are low paid people.

Photo of John O'DonoghueJohn O'Donoghue (Kerry South, Ceann Comhairle)
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That is something the Deputy can raise when the legislation is introduced.

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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If the Taoiseach clarified the matter, he would save a good deal of industrial relations strife.

Photo of John O'DonoghueJohn O'Donoghue (Kerry South, Ceann Comhairle)
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As the Deputy is aware, we cannot deal with that this afternoon.

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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Will the Taoiseach clarify the matter? This is going to cause strikes.

Photo of John O'DonoghueJohn O'Donoghue (Kerry South, Ceann Comhairle)
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The Deputy is referring to the content of the legislation and she is well aware she must wait for the legislation to be published to address it.

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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The House awaits with bated breath the Government's proposals in respect of recapitalising the banks. Will that legislation contain any proposals to recapitalise the farmers, who are due in excess of €400 million from the Department of Agriculture, Fisheries and Food? They will indirectly capitalise the banks because they will be conduits for passing the cheques onto the banks anyway.

Photo of John O'DonoghueJohn O'Donoghue (Kerry South, Ceann Comhairle)
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If the Deputy wishes to put a question on legislative proposals, he may do so. We cannot deal with that now.

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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These farmers are due money that the Minister for Agriculture, Fisheries and Food failed to provide in the Estimates. It is a very serious issue. Thousands of farmers are owed more than €400 million under the farm waste management scheme alone. They are owed money by the State which is in breach of its contractual commitments to those farmers.

Photo of John O'DonoghueJohn O'Donoghue (Kerry South, Ceann Comhairle)
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There is another way of raising the matter and if the Deputy raises the matter in an appropriate way, I will try to assist him in every way possible, but I cannot deal with the matter now. That is the way the House works.

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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The Minister for Transport, Deputy Noel Dempsey, published a wonderful document last week entitled Smarter Travel. I understand the plan will cost the Exchequer some €4.5 billion up to 2020. Is legislation due to deal with that? Is there any funding whatsoever for it this year, or is this typical rhetoric from the Minister?

Photo of John O'DonoghueJohn O'Donoghue (Kerry South, Ceann Comhairle)
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Is legislation promised in this area?

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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I understand there will be legislation in due course.