Dáil debates

Tuesday, 13 December 2011

Ceisteanna - Questions (Resumed)

Programme for Government

4:00 pm

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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Question 14: To ask the Taoiseach the staffing and costs of the unit in his Department charged with overseeing the implementation of the Programme for Government. [35997/11]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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Question 15: To ask the Taoiseach if he will detail any publications regarding the implementation of the Programme for Government which will be produced in the coming year. [35998/11]

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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Question 16: To ask the Taoiseach the publications he plans to produce regarding the progress that the Government has made in the implementation of the Programme for Government. [38609/11]

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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I propose to take Questions Nos. 14 to 16, inclusive, together.

As Deputies will be aware, a new programme for Government office has been established in my Department. Two whole-time staff have been assigned to the office from within existing Department resources. This staff, comprising an assistant principal officer and a higher executive officer, has a total annual salary cost of €144,266.27, including employers' PRSI. The office is currently in the process of developing structures which will allow it to monitor programme implementation and to report to me and to the Cabinet on progress across all Departments.

As part of that structure, my Department will ensure that departmental strategy statements for the period 2011-14 fully reflect commitments in the programme for Government, together with the EU-IMF programme and the comprehensive expenditure review. Departments will, as part of the strategy statement process, publish annual output statements, which will quantify and report on progress in implementing the programme and outline the commitments for the Department for the year ahead. I also envisage that the Government's first annual progress report on the programme for Government will be made available on my Department's website in March of next year.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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I thank the Taoiseach for his reply.

The Taoiseach is saying that publication of the first report on the programme for Government that will be compiled by the staff will be in March next. Given that there have been fairly substantial breaches of commitments made in the programme for Government, on disability, health, education, lone parents and schools with disadvantage, is it only fair and reasonable to have an earlier reiteration of the programme for Government and perhaps a report card before the close of this year?

The Taoiseach stated in an appearance earlier in the year on "The Late Late Show" that there would be a report card for every Minister which he would publish. He kind of resiled from that subsequently. The Taoiseach is smiling now but I actually went back over it.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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I did not say I would publish them.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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The Taoiseach did. I went over the interview. The Taoiseach was very serious in his interview on "The Late Late Show". He stated there would be a report card on every Minister and given his commitment to transparency, that would seem to suggest that he would publish it. Anything short of that would be-----

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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Maybe Deputy Martin could FOI it.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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-----not in keeping with the Taoiseach's commitment to transparency.

In terms of the programme for Government, there have been many decisions taken in the budget and prior to the budget, both on economic issues and on education, welfare and health, where there have been clear breaches. Of course, the most immediate one is that on upward-only rent reviews, which is a clear commitment in the programme for Government and which the Minister for Finance has buried in the budget and stated will not happen, much to the disgust and anger of many retailers across the country. There is a need to review and update the programme for Government in the light of the commitments that cannot and will not be delivered.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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I have here a list of issues that have been dealt with under the programme for Government. It is too long to read out to Deputy Martin. I will send Deputy Martin a copy.

There are 26 elements of the programme for Government covered under the most recent budget. They range from the highest transparency in respect of NAMA with the Minister for Finance to establish the advisory group to advise him on NAMA strategy and his capacity to deliver on that strategy, to the commitment to allow a rebate in respect of farm diesel in regard to carbon tax, with a double income tax deduction for that. There are 26 elements of the programme for Government dealt with in the most recent budget.

It is not only about having a budget to implement issues in the programme for Government. The programme for Government is something on which we will deliver to the maximum extent possible.

I must state quite openly that we genuinely believed it would be possible to legislate in respect of upward-only rent reviews but the clear evidence in respect of this being constitutionally impossible was there from the legal advice of the former Attorney General and other senior counsel opinion besides, to the effect one would end up having to compensate landlords if one was to introduce such legislation. Following discussions with the Minister for Finance, NAMA has responded by indicating it will deal with the properties in its portfolio in respect of upward-only rent reviews.

This is an issue of considerable concern to retailers. I spoke to somebody yesterday who is paying three times the rent of the next-door tenant - this is always difficult. The de facto position on the ground in many cases is that rents have been reviewed downward by virtue of circumstance. Clearly, with retailers under pressure from rates and a flat indigenous economy, the position has become very much more difficult. From that point of view, quite a sizeable number of rents have been renegotiated downwards where the other situation applied.

I say to Deputy Martin quite openly that it has been impossible to deliver on the commitment that we thought genuinely we could do by putting it into the programme for Government. There is a constitutional barrier we could not cross but we are making other arrangements in respect of some retail outlets - those in NAMA - and the Minister is considering what else can be done. However, there are 26 elements in the recent budget.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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That is a clear commitment that the Taoiseach is now saying cannot be fulfilled because of the constitutional barrier. He would have been told that in advance of the formation of the Government. He was told there was a constitutional barrier. Everybody in the House was told there was a constitutional barrier as per the legal advice of the former Attorney General, and yet the Taoiseach decided to go ahead and put it into the programme for Government and make all sorts of election commitments promising people this would happen. There were Bills brought to the House etc.

There is no excuse for putting something in when the Taoiseach knew full well what the answer would be ultimately. He really raised the hopes of people and paralysed the situation for a good nine months, and then was forced in the budget to admit the position.

What are the implications of that in terms of other commitments in the programme for Government? That is what I am getting at. We need an honest review of the programme for Government in terms of what is possible and when.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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The situation is not exactly as Deputy Martin describes it. Obviously, my party was not in government before the election and therefore did not have at its disposal the formal legal advice from the Attorney General. Deputy Martin did though, if he requested it.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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We did.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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Obviously, he could have said what was the legal advice available.

March next will be an appropriate time to have an annual review of the performance of Government in so far as the commitments in the programme for Government being fulfilled are concerned. It is quite sizeable, more sizeable than I had considered.

As I stated, there are 26 clear commitments in the programme that are now delivered on in this budget. This programme is for a full Government term. Deputy Martin can take it from me that one of my clear priorities is that Ministers deliver in so far as politically and constitutionally possible on the commitments that are in the programme for Government. I hope to drive Ministers on to that. We have set the ceilings for Departments for the times ahead. Clearly, there has been a great deal of work done in respect of MOUs and troika legislation for this session. Next year we must focus, obviously, on the question of Europe, but also on the clear challenge to the country in the context of employment, job creation, labour activation measures, investment opportunities etc. Those will be our clear priorities to provide work.

All of these matters have a bearing on the commitments in the programme for Government. I look forward to saying to Ministers that they have a big challenge between now and March, I want to see X, X and X delivered in their Departments and to get on with it, and if there is a reason they cannot deliver it, then to tell me why.

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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On a number of occasions the Taoiseach has spoken about the need for open government. Years before he became leader of his party, I remember him speaking and writing about the reform of this institution and I listened and read intently what he was saying.

On this issue of the programme for Government, the two parties in government stood on separate manifestos which made clear commitments and they were elected on those very clear commitments. They then put forward the programme for Government. I think the Taoiseach should consider, well in advance of March, publishing how he sees the implementation of that programme.

Our job is to scrutinise the Government. I do not believe in opposition for the sake of opposition. We should be constructive in how we go about it. We are able to read the programme for Government and then to state the Government promised this but it did that, and it gets into the sort of ping-pong across this Chamber.

Maybe there are reasons the Taoiseach did that. Maybe there are reasons the Taoiseach could not do some of the things he committed to doing. It would be useful and constructive if the Taoiseach said that. On welfare, health and education, he did not do what he promised to do. On his 100th day in government, he said the Government would not raise taxes or cut welfare, but it did so. The political choices of the Government, as opposed to those that might not be possible, are what are marking it out. The poorest, most vulnerable and disadvantaged are bearing the brunt of the austerity measures.

I listened to what the Taoiseach said about bringing this measure forward in March. I appeal to him to do so. A good way to mark the new year may be to come forward with some sort of review of how the programme for Government has been implemented.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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No doubt the Deputy will keep me focused on this. This morning I gave a briefing on the meeting at the weekend, yet the Deputy tells me I did not raise something I did.

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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I reported to the Dáil what the Taoiseach spoke about this morning.

Photo of Joe HigginsJoe Higgins (Dublin West, Socialist Party)
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This is the third time the Taoiseach has raised this argument.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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He writes down his own notes, which he is perfectly entitled to do and for which I am not responsible. I said to Deputy Martin that the budget dealt with 26 issues, ranging from NAMA to carbon taxation on diesel for the agricultural sector. In the labour market policy in regard to access to higher education for the unemployed and the 30,000 additional training places across education and training systems, the Minister for Public Expenditure and Reform, Deputy Howlin, has announced that, as a consequence of the budget, places, including in the education and training sector and especially for those on the live register for 12 months or more, will be prioritised in 2012. He also announced an allocation of €20 million for a new labour market activation fund, which we will deal with in January.

In preparation for 2013, we said we would review progress on deficit reduction and draw up a plan that would achieve the objective of reaching the 3% of GDP target by 2015. As part of its fiscal strategy, the Government will keep the corporate tax rate at 12.5%. That has been set out clearly again in the budget. We said we would maintain the rates of income tax, together with bands and credits. That has been delivered on. There is no increase in the standard rate of 10.75% in respect of employer's PRSI. The Minister for Finance, Deputy Noonan, made that perfectly clear in his speech.

We said we would reduce, cap or abolish property tax reliefs and other tax shelters which benefit very high income earners. Reliefs in section 23-type investments will not be terminated or otherwise restricted for investors with an annual gross income under €100,000. I refer to the teachers, gardaí or public servants who invested in bits and pieces of property, collectively or individually. They are at the greatest risk of insolvency. We dealt with that.

We said we would implement a minimum effective tax rate of 30% for very high earners. The Minister for Finance dealt with that. We said we would limit the top rate of VAT to 23%. We said we would review the universal social charge, exempting 330,000 people, thereby assisting more people to move into the labour market. We said we would ensure tax exiles would make a fair contribution to the Exchequer. As Deputy Adams is aware, the Minister announced the abolition of the citizenship element of the condition for payment of the domicile levy to ensure tax exiles cannot avoid the levy by renouncing their citizenship.

There was a range of other measures. We announced that access to primary care without fees would be extended in the second year to claimants of free drugs under the high-tech drugs scheme, at a cost of €15 million. The Minister for Public Expenditure and Reform, Deputy Howlin, announced that €15 million will fund access to primary care without fees to claimants of free drugs under the long-term illness scheme.

We ring-fenced €35 million annually from the health budget to develop community mental health teams and services with a view to implementing A Vision for Change. We also said we would increase mortgage interest relief for first-time buyers who bought between 2004 and 2008 to 30% from the current sliding scale of 20% to 25%. The Minister for Finance announced that in the budget.

These are commitments entered into in the programme for Government and reflected in Government decisions. They are all in the interest of balance and fairness in protecting those who are vulnerable and making those on higher incomes pay more. In all other areas, they are to improve the efficiency of governance so people can focus on job opportunities, careers and getting back to work.