Dáil debates
Wednesday, 13 October 2010
Public Procurement Contracts
Waste Management
3:00 pm
Damien English (Meath West, Fine Gael)
Link to this: Individually | In context
Question 76: To ask the Minister for Enterprise; Trade and Innovation if he has satisfied himself with the cost on business of waste management services; and if he will make a statement on the matter. [36458/10]
Conor Lenihan (Dublin South West, Fianna Fail)
Link to this: Individually | In context
The determination of waste management charges is primarily a matter for the local authorities or private operators where such operators are involved in the provision of a waste collection service. However, my Department is focusing its efforts on reducing all costs to business, including waste costs, to enhance the competitiveness of companies in Ireland.
The National Competitiveness Council, NCC, published two reports in July which act as useful benchmarks for analysing business costs in Ireland, the Cost of Doing Business in Ireland and the Annual Competitiveness Report 2010: Volume 1, Benchmarking Ireland's Performance. Both of these reports found that, overall, Ireland has regained some of its competitiveness since 2008 as a result of a fall in price and cost levels relative to our main trading partners.
The benchmarking report found that in 2008 Ireland was the most expensive of the locations benchmarked for waste costs, although costs in Ireland vary significantly by local authority. However, the NCC also reported that market prices have fallen significantly recently due to the recession. This finding is underpinned by Forfás's latest benchmarking report on waste management which was published on 6 October.
Waste policy overall is a matter for my colleague, the Minister for the Environment, Heritage and Local Government, Deputy Gormley, who recently invited submissions on a draft statement of waste policy. The enterprise development agencies under the aegis of my Department, namely, IDA Ireland, Enterprise Ireland and Forfás, made a joint submission with a view to ensuring that optimal solutions for waste management are available for companies operating in Ireland on a competitive cost basis when compared with our trading and investment competitor countries.
Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context
Can the Minister of State confirm that his agencies take the view that the Minister's policy in this area is damaging to our cost base and prevents the development of opportunities? Does he accept that the NCC report indicates that we are not only the most expensive of the benchmarked countries but are also twice as expensive as Scotland, a country with comparable population? Is he aware that the NCC and Forfás have been withering about the hamfisted way in which this sector is being regulated, with local authorities acting as both regulator and provider? Can he indicate when a coherent policy based on enterprise needs will emerge and whether responsibility will, if necessary, be wrestled away from the Minister, Deputy Gormley, in order to develop this much needed coherence?
Conor Lenihan (Dublin South West, Fianna Fail)
Link to this: Individually | In context
Rather than using emotive words like "damaging", it is important to note that all the agencies operating under the aegis of my Department are concerned about our competitiveness and they tend to make their concerns known at Cabinet sub-committee meetings and when making presentations to Government officials. The agencies clearly recognise the importance of reducing costs. The market price has fallen and there is evidence from landfill sites and other waste facilities that lower prices are being accepted. The Department and its agencies continue to apply pressure to further reduce costs and we await with interest the statement of the Minister, Deputy Gormley, on the matter.
Brendan Howlin (Wexford, Labour)
Link to this: Individually | In context
I ask Members to ensure their mobile telephones are turned off as they interfere with the recording of proceedings.
Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context
Is the Minister of State aware that the NCC has pointed out the need for a process of implementation of the competitiveness agenda? In this important area, both Forfás and the NCC have confirmed that the Government is pursuing a policy that is absolutely perverse. Who in Government is taking responsibility for delivering change in light of the cost in jobs and opportunities? Clarity is needed on this. The fact that the Minister is defending constituency interests or pursuing a particular approach should not blind the Government to the need for a cross-departmental approach to creating and protecting jobs. The Minister of State needs to get his finger out instead of supplying the standard answers.
Conor Lenihan (Dublin South West, Fianna Fail)
Link to this: Individually | In context
The pressure on landfill is to move people towards recycling opportunities.
Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context
The structure of the landfill levy was described by the Minister of State's agencies as perverse. The Minister of State should read the documents.
Brendan Howlin (Wexford, Labour)
Link to this: Individually | In context
Allow the Minister of State to reply without interruption.
Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context
The Government is not pursuing the hierarchy of waste.
Conor Lenihan (Dublin South West, Fianna Fail)
Link to this: Individually | In context
The Government is under pressure from two factors. We wish to reduce the use of landfill and, naturally, the cost of recycling and landfill. Landfill is not a particularly efficient way of dealing with waste.
Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context
The Minister of State should read the report because he got it wrong.
Willie Penrose (Longford-Westmeath, Labour)
Link to this: Individually | In context
The pressure arises because the Minister, Deputy Gormley, is pulling in one direction and the rest of the Government is pulling in what is probably the correct direction by addressing the matter in line with the recommendations of Forfás and the NCC. Irrespective of what else happens, this issue will have to be addressed. I ask the Minister of State to bring cohesion to Government policy in this regard.
Conor Lenihan (Dublin South West, Fianna Fail)
Link to this: Individually | In context
I continue to press the Minister from a cost competitiveness perspective. Deputies will have to be patient while the draft policy statement is being prepared and published. Let me be clear; the pressure from my Department is to reduce costs.
Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context
The NCC sought a cross-departmental procedure for implementing change in this area but the Government has long refused to act. Does the Minister of State believe it is time to introduce a procedure for implementing these changes and, if so, what action will he take to promote it?
Conor Lenihan (Dublin South West, Fianna Fail)
Link to this: Individually | In context
The Government is taking a coherent approach to the challenge of bringing the country out of recession and into recovery. Cost competitiveness is vital in that context.
Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context
If it is meaningless, he is all for it.
Conor Lenihan (Dublin South West, Fianna Fail)
Link to this: Individually | In context
I expect every Minister to consider cost structures in making decisions, even ones which affect the environment.