Dáil debates

Tuesday, 13 December 2011

Private Members' Business

Rural Areas: Motion

7:00 pm

Photo of Michael MoynihanMichael Moynihan (Cork North West, Fianna Fail)
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I move:

That Dáil Éireann:

— condemns the Government for introducing a series of budgetary measures that discriminate against those who can least afford it and particularly those in rural Ireland;

— objects to the overall policy direction introduced by the Government of progressively reducing and closing rural services;

— rejects the move by the Government to reduce and ultimately close small rural schools;

— further rejects the closure of rural Garda stations throughout the country;

— further objects to the increase in school bus costs that adversely affects rural families;

— opposes the cutbacks in community employment schemes that provide vital services to rural Ireland on a self-help basis;

— further opposes the abolition of the local improvement scheme;

— rejects the cuts to farm assist, third level grants for agricultural families, the rural environmental protection scheme and the disadvantaged areas scheme;

— strongly disagrees with the increase in charges for basic services, specifically aimed at rural areas, through septic tank upgrade costs and fees; and

— calls on the Government to abandon its anti-rural bias and adopt a fair and balanced approach to the budget.

I will share time with Deputies Brendan Smith and John Browne.

Fianna Fáil Deputies did not take lightly the decision to move this motion on services in rural areas. In recent years services provided in rural areas at little cost to the State have been steadily eroded. The budget announced last week contained a large amount of hidden detail on policies and measures that will chip away at the fabric of rural areas and generate considerable long-term costs to the State if they are not reversed.

The honeymoon for the Government has come to an abrupt end. The recent budget containing its choices has laid bare the reality of its incompetence and arrogance. In the course of the budget debate Ministers and other Government Members patted themselves on the back and spoke repeatedly about how the budget announced last year had succeeded in showing the world that Ireland was on the right track in consolidating its budget. They also pointed out how economic growth had returned while last year's budget was in operation. It takes a hard neck to make such statements, given that, having voted and campaigned against the budget introduced last year by the former Minister for Finance, the late Brian Lenihan, the coalition parties are now trying to take credit for this work. In some ways, this is a backhanded compliment to the achievements of the previous Government. At all times in the past nine months the Government had sufficient numbers to alter or reverse the previous budget introduced by the Fianna Fáil-led Government. Having played to the gallery, it chose not to do so because it knew our policies were bearing long-term fruit. In the past nine months it has taken few significant decisions and has instead coasted on the back of plans already in place or ready to go because Fianna Fáil did the heavy lifting in last year's budget.

Never before has a Government spent so much time praising itself while doing so little. In the past week its hypocrisy began to catch up with it, although in fairness it has proved itself adept at leaks, spin and distortion, as it sought to manage expectations, even if this meant scaring the living daylights out of hard pressed families across urban and rural Ireland. At the end of a long month of leaks and press conferences, we have finally seen how Fine Gael and the Labour Party intend to govern. They have moved from speaking in vague generalities to taking real decisions. We must no longer take them at their word and can see in the cold, hard facts what are their priorities. The Government has made its own choices, for which it is accountable. Through the mountain of detail and hours of announcements, what has emerged is a deeply unfair and damaging budget which will hit vulnerable citizens and rural areas particularly badly.

This is the most regressive budget in years. It will cost jobs, has broken an unprecedented number of promises made only months ago and may lead to a serious shortfall in Government revenues as soon as early next year. It will not promote recovery but will endanger the achievement of fiscal targets and shift an unfair burden onto groups which are least able to manage. The single most important element which will create jobs and ease fiscal pressures is overall economic growth. The Fianna Fáil Party supports the fiscal target set in the budget. It is a reasonable compromise between the need to achieve a sustainable deficit level and protect the potential for growth in the economy. My fear arises from the emergence, in the small print of the budget, of a deeply damaging and long-term attack on the sustainability of rural communities.

Agriculture is a major growth sector of the economy and Government policy must reflect the central part it plays in job creation and food security, as well as its essential role at the heart of rural communities. These are outlined in the Food Harvest 2020 document produced by my colleague, Deputy Brendan Smith, and the previous Government. Food Harvest 2020 is the blueprint for agriculture and I am pleased it has been accepted as policy by the Government. These areas are intertwined and while last week's budget contains some positive measures, it fails to recognise the links between rural life and agriculture.

While the first budget produced by Fine Gael and the Labour Party contains some small positives, for example, on land transfer arrangements, its broad sweep has been harmful to rural areas. Cuts to the disadvantaged areas scheme and REPS 4 will impact on a wide range of farmers as a result of new criteria. Reductions under the farm assist scheme will affect the most vulnerable farmers, of whom 11,239 are in receipt of this vital assistance. Farm assist is a hard fought for scheme introduced more than ten years ago which focuses on farm families with small incomes. The cuts under the scheme are an especially miserable attack on their income. Taken together, I fear these changes will, on balance, damage the fabric of agriculture.

While agriculture is critical, it is not the only ingredient in sustainable rural communities. It is in the systematic undermining of these communities that the budget does most damage. For example, phased staffing adjustments in small schools with fewer than five teachers will be devastating in rural areas. Some 1,500 small schools will suffer from lower standards as a result of a higher pupil-teacher ratio or will be potentially forced to close. Garda station closures are another attack on primarily rural communities. Public safety in some 31 communities will be undermined as stations close, with obvious impacts on quality of life in the communities in question. Knocknagree Garda station in my constituency gives the community a focus on safety and security and covers a vast area.

Septic tank charges and upgrade costs are yet another area in which people living in rural areas are being asked to bear a disproportionate cost. By demanding that 475,000 septic tank owners pay for this most basic service, the Government has taken a decision to actively discriminate against citizens living in the countryside. If a charge were introduced for connection to sewerage services in urban areas, city dwellers would correctly protest. Let no one deny that the septic tank charges and other measures introduced in the budget constitute a serious attack on rural Ireland.

Everyone knows that VAT returns are the greatest concern to the Exchequer. They are well behind projections and underlying consumer confidence remains weak. The overall deficit target will not be met if VAT returns continue to underperform. The increase in the VAT rate will drive consumers away from already hard pressed shops and impact on jobs in rural areas in which retail outlets are an important source of job creation and sustainability. We are now in the bizarre position that the Government is making directly contradictory claims about VAT changes in different parts of its budget. When it was cutting VAT for selected industries in June, it claimed thousands of jobs would result and argued that cutting the VAT rate was the best way to create jobs. Now that it is front-loading VAT increases of 2% on a much wider range of goods and services, it claims the increase will not have an impact on the economy. It cannot have it both ways. This nonsense is undermining the retail sector which needs confidence and support rather than a sucker punch, which is what the increase in VAT will deliver. The decision to raise VAT is strategically the wrong call. It was made because Fine Gael was playing politics with the economy and wanted to be able to claim it had left income tax untouched. Instead of taking the much fairer option of targeting revenue measures at the highest earners, as Fianna Fáil had proposed, the Government decided to rely on increasing the most regressive tax, which is also the tax that is underperforming most. The measure has introduced a degree of uncertainty in the programme of fiscal consolidation which the Government may come to rue.

It does not give me any pleasure to point out that the unequivocal net effect of the budget will be the loss of more jobs in urban and rural areas. A contraction of net employment in 2012 is confirmed in the budget documentation. This is more of what we heard from the Government when it announced its downgraded jobs budget. The most recent Central Statistics Office figures, released yesterday, confirmed an annual decrease in employment of 2.5% or 46,000 up to the end of the third quarter of 2011. Furthermore, the seasonally adjusted unemployment rate increased from 14.2% to 14.4% in the most recent quarter. The raid on pensioners, which produced a net €250 million for the Government's so-called jobs initiative, is failing. The measures that have been announced to aid the export and construction sector are to be welcomed. Once again, however, they are being over-spun. The fact is they are not enough. The budget documentation shows that the action the Government has taken is so small that it is having no impact on growth or employment. It is accompanied by an accelerated cut in capital spending. The €750 million that is being cut is substantially bigger than any stimulus package that was announced in the budget.

In terms of its social impact, this is by far the most regressive budget for some time. The spending cuts and tax increases will fall directly and disproportionately on the weaker sections of society and the poorer sections of rural communities. As a republican party, Fianna Fáil opposes this lack of fairness vehemently. The disability cuts were hidden until we spotted them on this side of the House, at which point the Government made a U-turn. We are glad we forced the Government to think again. We are not clear on whether or how the Government will achieve the savings it claims it can achieve on expenditure on lone parents, child benefit, jobseeker's payments and widow's payments. In the past few days, it has become clear that those who receive carer's allowance will have their family income supplement cut. The Government has tweaked the eligibility criteria for this and many other welfare payments. We did not see any headlines about such choices.

Like an iceberg, the real danger in this budget is lurking below the waterline. We have not yet clearly seen the full extent of the Government's assault on the vulnerable. It will become more apparent as time moves on. No amount of spin or camouflage can keep the nature of these cuts under wraps forever. When the leader of the Labour Party was asked during a general election debate what would be his priority in the social justice area if he were elected to government, the current Tánaiste said:

I think it would be looking after people with disabilities ... The first area that Labour in government would address in terms of equality and in terms of giving decent supports to people would be people with disabilities. I think, as a country, we have to make that the priority.

The leader of Fine Gael, who is now the Taoiseach, responded quickly by saying "that is very laudable and I share that." Their words ring hollow in the aftermath of last week's budget.

In its pre-budget proposal, Fianna Fáil has shown how the Government can meet its targets while still delivering greater investment in capital projects to create jobs and invest in Ireland's future. We are proposing that pension funds, in addition to Government funding, should be invested in commercial projects in partnership with the State. This is a credible and workable alternative to the Government's pension levy. It is not too late for the Government to change its mind. Fianna Fáil has set out how budget targets can be met in a fairer way. The required savings can be delivered by speeding up agreed reforms, focusing tax increases on the highest incomes and driving further efficiencies.

One in every five Irish homes is experiencing real mortgage difficulty. It is time for more action to help people in such circumstances. We have introduced legislation to give practical help to families in debt. We ask the Government to take it on board. It should never be forgotten that the banks have a responsibility to our society. They should lend to businesses and pass on interest rate reductions to home owners. Many people in rural Ireland, in particular, are employed by small and medium sized companies. There are not many foreign direct investment companies in my constituency or elsewhere in rural Ireland. People farm the land or work in the local shop, school, district hospital or Garda station. None of these areas are safe under this Government.

The devil was truly in the detail in this budget. When the education proposals were announced, the cut in the pupil-teacher ratio was hidden deeply in a brief mention of cuts in career guidance counselling services. The cuts in education will overwhelmingly fall on rural schools. The disadvantaged schools that have been mentioned are inevitably those within rural schemes. Some teachers in my constituency have concluded that the needs of rural communities did not enter the Minister's thinking. All the cuts in the primary pupil-teacher ratio are being confined to schools of four teachers or fewer, most of which are in rural communities. The Minister, Deputy Quinn, has added insult to injury - in case people in rural areas do not feel sufficiently discriminated against - by doubling school transport charges, which apply to rural areas only. The cuts in postgraduate courses will also have an impact.

This Government is making a significant mistake by pursuing these policies. For many years, decisions have been taken that benefitted urban Ireland. We have seen what that has cost the State. The policies being pursued at farmgate level and across rural communities, such as the cut in the local improvement scheme, will damage the fabric of society in rural areas. Such areas are experiencing substantial depopulation because of the Government's inability to see the benefit of having people working and living in sustainable rural communities. The Government needs to support the small family farm, which has been the backbone of such communities for generations. I commend the motion to the House.

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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I am glad to have an opportunity to support the motion that has been moved by my party colleague, Deputy Moynihan. He has cogently and strongly outlined the issues that are arising from last week's inherently unfair budget. The 2012 budget contains a series of measures that will have a serious impact on low-income families and vulnerable households throughout the country. Rural Ireland, in particular, has been penalised in the budget and by broader Government policy. The Fine Gael-Labour Party Government has singled out rural Ireland for cutbacks across a wide number of areas. These cutbacks will have a deep impact on parts of the country that have been already badly affected by the recession, as Deputy Moynihan has said.

Major investment has been made in rural Ireland in the past ten or 15 years. Money has been allocated to develop schools, child care facilities, public housing, public water and sewerage schemes, rural group water schemes, sporting and recreational facilities and other community facilities. There are particular attractions to living and working in rural areas. As we all know, the primary school is a focal point and important centre in each community. Small communities value their local schools. Some towns and villages are fortunate to have the privilege of having a second level school. In the past decade, an important investment has been made to upgrade existing school facilities and to provide new facilities. The Department's various school building programmes have enhanced considerably the school stock throughout the country. Those of us who have visited such schools and participated in the official opening of new facilities are conscious of the pride of the local community in such modern facilities. Local communities have a sense of ownership of their valued educational infrastructure.

As a representative of two rural counties, I have been aware since budget day of the widespread concern in our communities about the future of local primary schools. It is putting it mildly to say there is great concern in rural Ireland about the Government's decision to introduce phased adjustments at primary level to the staff schedules of schools of four teachers or fewer. It is inevitable that this decision will lead to increased pupil-teacher ratio in rural primary schools. The Department's advice to small rural schools to "consider their future" and "assess their options for amalgamation" is a cause of concern to parents with children who attend smaller rural schools. The Government gave a commitment to protect primary education and the overall pupil-teacher ratio at primary level. However, it is obvious that phased changes to the staffing schedules in one-teacher, two-teacher, three-teacher and four-teacher schools - schools with less than 86 pupils - will be seriously affected by the Government's budget decisions. There are 3,200 primary schools in the State. Some 47% of them have five teachers or fewer. Those figures clearly show the huge impact on small rural schools of the Government's decision.

Schools need to know if they face amalgamation or closure. The Minister must clarify the number of schools that will be affected in each county and specify which schools are involved. I note that schools of the minority religions are concerned about the viability of such schools due to the smaller enrolments they have had over the years.

I welcomed the commitment shown by the Minister last June when he stated that in considering any policy changes in respect of smaller schools the Department would consider a number of wider dimensions, and not merely the cost of running such small schools. I ask the Minister to restate that commitment and to outline clearly to us that small rural schools will continue to be a vital part of the educational infrastructure of our country. In recent years there has been new development in child care facilities in our towns, villages and rural parishes. In many instances it is the small rural school in the parish or town which offers the after-school child care facilities that are so important for many families and which benefit the children concerned.

The Minister has yet to publish the value for money review of small schools that was begun by the Department of Education and Skills earlier this year. It is not acceptable that the Minister should proceed with amalgamations before we see the findings of this review. I ask him and the Minister of State, Deputy Cannon, to have the review finalised and published as soon as possible.

In June 2011, the Minister, Deputy Quinn, stated that in considering any policy changes in respect of small schools, the Department of Education and Skills would consider wider dimensions than simply the cost of running such schools. At the time my party welcomed that commitment. The Minister stated:

Among the issues that will need to be taken into account are questions such as availability of diversity of provision, ethos of schools, parental choice, language of instruction, travel distances, transport costs and the impact of schools on dispersed rural communities. The review will examine the locations of small schools relative to each other and to other schools of a similar type. It will also examine the costs of running small schools and the educational outcomes associated with small schools.

The position of the Fianna Fáil Party on this review has always been that it should be about increasing the educational return to communities from the schools in question, not about finding ways of rationalising them. We admit there may be areas where shared resources, such as specialist teaching and IT support could make a big difference. There are many such instances of which the Minister of State will be aware. I mentioned, for example, two VECs in my constituency which provide services of technology to some primary schools and voluntary secondary schools. However, my party does not and will not support any programme to rationalise smaller schools. I stated as much during the last Private Members' motion on education in April this year and I reiterate this position today.

In government the Fianna Fáil party dramatically increased teaching and other resources to small schools and doubled the numbers of teachers working in small rural schools. We did this because we see local primary schools as an irreplaceable part of community life. Every Member of this House and the Upper House is well aware of the considerable improvements made to the infrastructure of our smaller schools and to the human resources available in them. A very important beneficiary of this increased support for small schools has been the schools of Protestant denominations outside Dublin, in particular in my area of Cavan-Monaghan.

Earlier this year my party stated we would support the Minister if his intention was to increase the educational gain from spending on these schools. Unfortunately, it is now clear he intends to move ahead and take decisions without taking an overall approach. Again, the Government has singled out disadvantaged schools for significant cuts in teacher numbers this year in another series of callous cuts. Under the plans 428 posts allocated to disadvantaged schools throughout the country will be removed, on a phased basis, beginning next year. The rules on class sizes under the DEIS programme will also be changed under this Fine Gael-Labour Party plan. Class sizes in many disadvantaged schools will be increased to 22 pupils. Today the Taoiseach told the Dáil that his Government has protected pupil-teacher ratios in budget 2012. This is not correct. The Fine Gael-Labour Party budget targets disadvantaged schools for cuts to teacher numbers from next year. This is yet another example of the Government's budget hitting the most vulnerable groups hardest while those on higher salaries escape the bulk of the cutbacks.

Schools in disadvantaged areas face the greatest challenges and can least afford cuts to their staffing levels and services. The cuts announced in last week's budget will result in larger class sizes in most disadvantaged schools and will have a direct impact on the most vulnerable students in our education system. The DEIS programme is the only scheme that targets educational disadvantage in rural Ireland. Now many of these schools are to lose teacher posts. That disadvantaged schools and small rural schools have been singled out in this way is a disgrace. The Government had a series of choices to make in its budget in order to achieve the necessary savings for 2012. Unfortunately, it chose to target vulnerable groups and rural communities for the bulk of the cutbacks instead of asking those who could most afford it to play their part. All Members have spoken to parents whose children have benefited from these schemes and programmes. Not only have they been beneficial for individual pupils but they also aid the wider school community. Many principals and other staff members dread the changes proposed by the Minister and his Department. The children who benefited in the past from the additional teaching support needed that assistance and the pupils in the classroom today need it in their formative years.

School transport is a significant operation which currently supports more than 125,000 pupils and their families on a daily basis. The main criteria for provision of a service are distance from a school and a prescribed minimum number of pupils requiring transport from a distinct locality. As the Opposition spokesperson on education, last year the Minister, Deputy Quinn, railed against the increase in school transport charges. He referred to a line being crossed in regard to the imposition of primary transport costs. Now, however, he proposes to double most of those charges. Should there be school amalgamations and closures school transport will be even more central to the provision of primary education and will create likely additional costs for parents.

The Government's decision to change dramatically the provision for career guidance and counselling will have a significant effect on the majority of second level schools and will impact adversely on smaller second level schools. The Government has decided that from the next school year guidance provision will be managed by schools from within their standard teacher allocation. It has been stated clearly by the relevant interests that this decision will affect up to 1,000 guidance counsellors in 700 second level schools throughout the country. How can the Government claim it is protecting front-line services in education when such a decision is being implemented from the next school year? The reality is there will be a significant loss of teaching posts at second level, with some schools losing two posts. It is clear that the ramifications of this decision are very serious. All of us appreciate that guidance counsellors are a vital link between schools, society and the wider world of work. In these difficult times a reduced guidance service is not what pupils or their families need. Was there ever a more important time to have adequate guidance for young people?

Educationalists have clearly pointed out that the withdrawal of the entitlement of second level schools to ex quota career guidance counsellors will have the same effect as a straight increase in the pupil-teacher ratio. Unfortunately, it will mean that the majority of second level schools will lose a teacher. There will be a further curtailment of subject choice and the running of a transition year and the leaving certificate applied examination may be affected in many schools. That would be a very unfortunate and retrograde step. The priority of everybody in this House is to deal with the very difficult economic situation and to provide jobs for our people. This is a time when young people need career advice and counselling. Only last January, the ESRI dealt in a publication with the concerns of parents in regard to the availability and the adequacy of career guidance. That publication clearly showed the importance that parents attach to such guidance.

Even at third level there is an anti-rural agenda. The Government has taken four decisions that will significantly restrict the ability of young people and the unemployed to continue to third level education. We know of the commitments made four days before the general election by the Tánaiste, Deputy Gilmore, the Minister for Communications, Energy and Natural Resources, Deputy Rabbitte, and the Minister for Education and Skills, Deputy Quinn, that not alone would they not increase student contribution charges but they would reduce those imposed some weeks earlier. This pledge, like the others, will not be honoured.

Thankfully, there has been a significant improvement in third level participation rates. In 1980, only 20% of all 18 year olds went to third level. By 2009, 65% of all students who completed their leaving certificates went on to third level which now stands as the highest participation level in the EU. Between 1997 and 2010 the number of third level students increased 60% from 100,000 to 159,000. We do not want the Government imposing policies that will restrict access for people from lower income households to third level education.

I commend Deputy Moynihan's motion to the House.

Photo of John BrowneJohn Browne (Wexford, Fianna Fail)
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I rise to support Deputy Moynihan's Private Members' motion. Last week's budget, as put forward by the Fine Gael-Labour Government, was a blatant attack on families in rural communities with proposals for the closure of 31 Garda stations, a hike in school bus costs and the reduction in teachers for small schools. Reductions in REPS, the disadvantaged areas scheme and the farm assist support will further penalise poor farmers already under income pressure due to the recession. Local improvement schemes will also be abolished while the Minister for the Environment, Community and Local Government is pressing ahead with charges on septic tank which will mainly affect rural dwellers. I listened attentively to him last week on the septic tank Bill but am still waiting for him to announce grant aid to support those who may have to replace their septic tank systems.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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Wexford does not need a hand-out.

Photo of John BrowneJohn Browne (Wexford, Fianna Fail)
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I welcomed Deputy Twomey's announcement last week on Wexford local radio that he expected some type of grant aid to be made available.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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Well done, Deputy Twomey. The man with the inside track.

Photo of Liam TwomeyLiam Twomey (Wexford, Fine Gael)
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I was quoting the Minister.

Photo of John BrowneJohn Browne (Wexford, Fianna Fail)
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I hope he does have the inside track and is right. I supported him when he made the announcement last week on South East Radio.

The closure of Garda stations will devastate many rural communities, particularly in Wexford. I must remind Deputy Twomey that two stations are earmarked for closure in Wexford, one in Baldwinstown which is near where he lives and where I am sure he gets many more votes than I do. It is an important station because it serves a town with a large population and a large hinterland, nearly right down to Deputy Twomey's area of Rosslare.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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The town must have many visitors from Kilkenny.

Photo of Liam TwomeyLiam Twomey (Wexford, Fine Gael)
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We have three stations.

Photo of John BrowneJohn Browne (Wexford, Fianna Fail)
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I note the two Garda stations in Rosslare will be kept open but the one in Baldwinstown will be closed. The people in Baldwinstown, Rathangan and Kilmore are annoyed with the Labour and Fine Gael Deputies living in the area.

Photo of Liam TwomeyLiam Twomey (Wexford, Fine Gael)
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The Deputy should put them in touch with me.

Photo of John BrowneJohn Browne (Wexford, Fianna Fail)
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Ballywilliam station in the New Ross area serves a large population area including Rathnure and into New Ross. It should not be closed. Will the Minister explain how in 2006 the same number of Garda reductions had to be achieved but no Garda stations had to close?

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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There was more money then.

Photo of John BrowneJohn Browne (Wexford, Fianna Fail)
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He cannot say the EU-IMF are down to the nitty gritty of telling us which Garda stations have to close. In fact, the troika agreed with the previous Government that Garda strength should stand at 13,000. In 2006, when Garda levels had to be similarly reduced, there were no station closures. The Government should ensure Garda stations remain open and show some concern for people's security in rural areas.

Community employment schemes have done tremendous work for many communities through meals on wheels, GAA and other sporting organisations. It is not good enough the training and materials grant will be reduced from €1,500 to €500 per participant per annum. While some larger sporting organisations might be able to supplement their reductions, others, like meals on wheels and services for the elderly, will not be able to do so.

While I accept the Minister for Social Protection will review this decision, when the Government got into trouble last week it also used the term "reviewing". When my party was in government, I always maintained that when a Minister started talking about a review, it meant a cutback or reduction in services and funding.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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We heard it many times too. We learned it from them.

Photo of John BrowneJohn Browne (Wexford, Fianna Fail)
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Community employment schemes are a valuable entity and should be maintained. The Minister, coming from rural Kilkenny, will recognise the schemes' value. I expect he will announce this evening the reversal of last week's budget decision on the schemes.

On Thursday, the Minister for Agriculture, Food and the Marine will attend the annual EU Council meeting on fisheries in Brussels. Knowing about it from my experience in the Department, the Minister will argue for three days with his European counterparts about the importance of the fishing industry to coastal communities in Ireland. The European Commission has suggested quota reductions of up to 40% across the Irish total allowable catch. If this happens, it will have serious consequences for our coastal communities which depend on the industry such as Rosslare and Kilmore Quay. It is important we support the Minister for Agriculture, Food and the Marine, Deputy Coveney, in his endeavours to ensure the Irish fisheries are protected while these outlandish quota cuts are rejected.

Instead, we must ensure viable fisheries and that the industry will continue to progress and prosper. It employs up to 11,000 people with the potential to employ many more. Several weeks ago, all parties gave the Minister full support to take the gloves off to battle on behalf of the Irish fishing industry at the forthcoming Council meeting.

The local improvement scheme was developed to provide grants from local authorities towards the construction or improvement of non-public untarred roads.

The Minister was a local authority member and he will be aware of the importance of the local improvements scheme. Where farmers and others living on an unserviced road came up with money, they received a grant under the scheme from the county council to carry out works. It is important that this scheme be restored because if farmers and others living on unserviced roads are prepared to put up money, it is only right that the Government and the local authorities would provide matching funding. If not, there is not a hope in hell of people bringing roads up to the standard required nowadays.

I ask the Minister to seriously examine the reintroduction of the scheme. Perhaps he could do a deal with local authorities whereby the people living on the unserviced roads, the Minister and the relevant local authority would put up X amount each and it would be a three-way process. It is unfair on families in rural Ireland to withdraw the scheme. At the end of the day, the Government has a majority and it will make decisions but, on the basis of what I have heard over the past week, people in rural Ireland are dissatisfied with the actions and antics of the Government parties. I have no doubt they are only waiting for an opportunity to boot them out of office.

Photo of Liam TwomeyLiam Twomey (Wexford, Fine Gael)
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The Deputy needs to widen his circle of friends.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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I move:

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

"— recognises that the gap that has emerged between revenues and expenditure is not sustainable;

— recognises that the comprehensive review of expenditure process, which was undertaken across all Departments, examined all areas of expenditure and ensured that the principles of fairness, growth and reform underpinned the outcomes set out in budget 2012, within the resource framework set out in the programme of financial assistance with the EU-IMF negotiated by the previous Administration;

— notes that the expenditure reduction measures put in place in budget 2012 were some €300 million less than those proposed in the previous Government's national recovery plan; and

— acknowledges that the plans set out by Government in budget 2012 form an important step in returning Ireland's economy to a sound footing and regaining our fiscal sovereignty."

I wish to share time with Deputies Liam Twomey and Pat Deering.

It is clear that Deputy Browne has not been talking to too many people. He did not mention the 2009 reductions made by Deputy Smith as Minister for Agriculture, Fisheries and Food in spending on the disadvantaged areas and suckler cow schemes and so on.

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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That was the first year the suckler cow scheme was introduced.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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I did not hear anybody mention the cuts made by Deputy Smith in 2009. Does he want me to list them?

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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Funding for the disadvantaged areas scheme was reduced but two new income streams replaced that - the suckler cow and sheep grasslands schemes. Spending on them exceeded the reduction in funding for the disadvantaged areas scheme.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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They will be listed tomorrow night.

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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The Minister for Agriculture, Marine and Food cannot spend all the money he has been allocated this year.

Photo of Michael MoynihanMichael Moynihan (Cork North West, Fianna Fail)
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What about the agri-environment options scheme?

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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I have obviously hit a nerve.

As the Deputies opposite are well aware, the gap that has emerged between revenues and expenditure is not sustainable. Budget 2012 estimates the general government deficit in 2011 at €15.6 billion or 10.1% of GDP, which is likely to be the highest deficit in the EU. The Government is committed to reducing this to 8.6% of GDP next year, a target set under the EU-IMF programme agreed by the previous Administration. The comprehensive expenditure report 2012 to 2014 and budget 2012 published last week provide for an adjustment of €3.8 billion in 2012 to reach this 8.6% target, with approximately 60% of the adjustment being implemented on the expenditure side.

Consolidation is being implemented in the least "growth damaging" way and there are no increases in income tax this year. Supporting growth as much as possible must be at the heart of the consolidation process. Furthermore, as debt servicing costs have first call on resources, an increasing debt interest burden will lead to higher interest costs adding to the burden on the taxpayer, will reduce our productive capacity, increase unemployment and reduce the scope for providing public services in the future. Borrowing at current levels is not a long-term solution.

Over the coming years as economic growth returns, we also expect that growth in tax revenues will resume. However, the tax base is much reduced and economic growth will be export-led, which is not as tax rich as domestically driven growth. As a result, the expected pick up in tax revenues will not bridge the significant gap that has emerged in the public finances, even taking account of the revenue raising measures that will be implemented. Taxes in 2015 are currently forecast at €43.2 billion, still some €4 billion below their 2007 peak. Expenditure, therefore, must continue to play its part also in restoring sustainability to the public finances. Delivering on our budgetary targets is vital if we are to regain our economic and financial sovereignty and to return to sourcing our own funding from international financial markets next year. The motion simply bears no relation to these budgetary realities and I oppose it on that basis.

The Government is acutely aware of the economic challenges facing many property owners and businesses. My Department provides local authorities with significant resources from central government funds, which help reduce the need for local government charges. General purpose grants of €651 million from the local government fund have been allocated to local authorities for 2012. However, it is recognised that the existing revenue base of local authorities is too narrow by international standards. This was a consideration in the introduction of the €200 non-principal private residence, NPPR, charge in 2009. While the charge represents a dedicated source of funding for local authorities, which is relatively stable, it does not go far enough in addressing the imbalance in the sector's financing.

A proper broadening of the revenue base for local government will be achieved as a result of the introduction of the household charge in 2012 and the subsequent property tax in due course, proposals which found great favour with the previous Administration a short time ago. This charge, which has the potential to contribute up to €160 million towards the provision of local services, is an interim measure and proposals for a full property tax will be developed and considered by the Government in due course. These measures will provide a stable base of financial support for local government.

Local authorities are under a statutory obligation to levy commercial rates. Rates must be levied on any property used for commercial purposes in accordance with the details entered in the valuation lists which are prepared by the independent Commissioner of Valuation under the Valuation Act 2001. The levying and collection of rates are matters for each individual local authority. The annual rate on valuation which is applied to the valuation of each property as determined by the Valuation Office to obtain the amount payable in rates is decided by the elected members of each local authority in annual budgets. Its determination is a reserved function of a local authority. Local authorities have responded positively to requests from my Department to exercise restraint in recent years in setting commercial rates. Annual rates on valuation reduced in 2010 and again in 2011 and all commercial rates are collected and spent locally on essential public services. This is local democracy in action.

Photo of John BrowneJohn Browne (Wexford, Fianna Fail)
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Not in Wexford.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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The Government is focused on reducing the cost of doing business to support competitiveness and employment in the economy generally and to protect the interests of local communities. It is not concerned solely with the funding of local government, but also that local government delivers the services our communities expect as efficiently and effectively as possible.

The Government's commitment to align the community development sector with local government will also see an expanded role for local authorities in local enterprise and community development. This, in turn, will maximise the impact of investment to produce jobs at local level. My Department will continue to work with the County and City Managers' Association to identify best practices in the local government sector in building stronger sectoral approaches and eliminating variances between local authorities. While these are difficult economic times, Deputies will appreciate that local authorities play, and must continue to play, a central role in delivering services at local level. Local authority capital and current budgets, economic planning and development, and the provision of goods and services, as well as community infrastructure, feed into the communities they serve.

As regards water treatment, last month I published the Water Services (Amendment) Bill 2011, which will introduce a proportionate, risk-based approach for the inspections of septic tanks and other on-site waste water treatment systems. The objective of this legislation, which resulted from a European Court of Justice judgment against Ireland in 2009 that was not acted on by the previous Government, is to protect public health and the environment, and, in particular, drinking water sources.

Photo of John BrowneJohn Browne (Wexford, Fianna Fail)
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An attack on rural Ireland is all it is.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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If Deputies opposite want to poison groundwater and water supplies and, in turn, damage the prospects of inward investment, that is their decision, not mine.

Groundwater is a source of drinking water for many people. Approximately 26% of the public and private drinking water supply is provided from groundwater sources. The EPA has identified effluent from on-site waste water treatment systems as one of the main sources of contamination of groundwater in Ireland. The 2006 census reported more than 450,000 households were served by septic tanks and other forms of on-site waste water treatment systems.

The Water Services (Amendment) Bill has been drafted to minimize the impact on householders. The registration fee payable, which will not exceed €50, will cover all administration and inspection costs and no additional charges, such as a re-registration charge, will be levied on householders. Responsibility for the prevention of pollution from septic tanks and other on-site wastewater treatment systems rests with the owners of premises served by such systems. Section 70 of the Water Services Act 2007 places a duty of care on owners to ensure their treatment systems do not cause a risk to human health or the environment or a nuisance through odours.

Householders who are meeting their responsibilities in this regard have nothing to fear from the risk-based inspection system that will be introduced under the Bill. The Bill specifies the basic criteria against which on-site waste water treatment systems will be inspected in line with article 4 of the waste directive. These are that the system does not endanger human health or the environment, including water, air and soil, the countryside and places of special interest.

Budget 2012 is a strong statement of this Government's support for the agrifood sector. It recognises the significant contribution the sector can make to economic recovery and growth. While acknowledging that savings have to be made in certain schemes due to the budgetary situation, the Government is targeting existing resources at active farmers, especially those in vulnerable sectors.

With regard to the disadvantaged areas scheme, there will be no changes in either the rates or the eligible areas qualifying for a disadvantaged area payment, despite the fact expenditure will be reduced by some €30 million in 2012.

Photo of John BrowneJohn Browne (Wexford, Fianna Fail)
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The Minister is some man.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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That is some doing.

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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He can get the local authorities to do that with the rate support grant.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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Deputy Smith can compare that with his record. This lower financial limit will be achieved by the introduction of targeted reform in the disadvantaged areas payments, which will be achieved through reform of the stocking density, retention period and other elements of the scheme. The proposed changes will favour active farmers.

The Government is supporting productivity and the upskilling of farmers and the food sector by investing in R&D, food safety, animal welfare and enterprise development. The suckler cow welfare scheme will continue to be fully funded from national funds. In particular, despite the financial constraints faced, the Government will continue to provide the necessary funding to meet all payments due in 2012 at the current rates.

The targeted agricultural modernisation schemes, TAMS, which had been suspended earlier in the year because of the uncertain budgetary situation are being re-opened.

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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Some €19 million was provided and only €1 million spent.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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The Deputy closed it. We will open it.

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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No. On a point of information, it was the Minister, Deputy Coveney, who closed it.

Photo of John McGuinnessJohn McGuinness (Carlow-Kilkenny, Fianna Fail)
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The Minister, Deputy Hogan, should be allowed to continue.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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These schemes cover poultry and pig welfare, dairy equipment, sheep handling and rainwater harvesting schemes, as well as the bio-energy scheme. In addition to providing an incentive for farmers to invest in their enterprises and secure their futures, these schemes will make a worthwhile contribution to job creation and to the maintenance of existing jobs in rural areas.

The Government's commitment to afforestation is being honoured. The forestry sector contributes to job creation and to the maintenance of jobs in rural areas and has a vital climate change role. The funding provided for in budget 2012 will allow afforestation to continue at roughly 7,000 hectares per annum, as well as providing for the building of forest roads.

In the seafood sector, in addition to funding for investment schemes in the processing sector, aquaculture development and fishery harbours, the Government is providing for an increase in the grant-in-aid for Bord Iascaigh Mhara. I know former Deputy Hugh Byrne would be delighted with that.

Photo of John BrowneJohn Browne (Wexford, Fianna Fail)
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The Minister was going to do away with that a couple of months ago.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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The budget sends out a positive message about the agri-food sector. It is an indication that the Government has confidence in the ability of the sector to do much more in terms of generating growth and employment. All the indications are that the sector will continue to outperform other sectors of the economy and continue on an upward trajectory, creating new jobs and building further on the outstanding export performance in 2011.

Moving to other areas of concern to rural dwellers, the Government is very much aware that public transport is not just an urban issue but one that is very real for rural areas. Many people in rural areas have great difficulty accessing basic services due to lack of access to transport. Schemes such as the rural transport programme can and do transform life for those who benefit. A good public transport system is a necessary precondition for the development of a fully inclusive society in all its social and economic dimensions. Rural transport is a necessary component of such a system and can determine people's level of access to work, education, medical and social services. The programme for Government acknowledges the importance of transport for rural communities and includes a commitment "to maintain and extend the rural transport programme with other local transport services as much as is practical".

The consolidation that this Government has been required to take has, by necessity, in some cases resulted in reduced services to the public. However, the Government has ensured that the principles of fairness, growth and reform underpin all decisions that must be taken if Ireland is to regain its economic sovereignty. I completely refute the allegation from the Deputies opposite that there has been an anti-rural bias to any announcement by the Government. Rather, as I have demonstrated, the Government has ensured that the rural community, and the rural way of life, has been protected in so far as is possible in these trying times. I recommend the Government's amendment to the House.

Photo of John BrowneJohn Browne (Wexford, Fianna Fail)
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The Minister is some man.

9:00 pm

Photo of Liam TwomeyLiam Twomey (Wexford, Fine Gael)
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Reading the motion, it is difficult to see what is Fianna Fáil's policy into the future given it is trying to ingratiate itself with the public it so badly let down in recent years. It seems to be a mixture of the use of fear to get people on-side and perhaps going back to the territory of comely maidens dancing at the crossroads. Younger generations, and not so young generations, laughed at the myopic vision of a former Fianna Fáil leader when he talked about comely maidens dancing at the crossroads as if things do not change. It is not so funny when we consider the utter destruction of this country's economy and public finances by previous leaders of the party opposite. This is why I find it strange to see Fianna Fáil trying to make itself out to be the guardian of rural life. Four of the signatories to this motion were themselves part of a Government that landed us in the greatest crisis this country has ever known. There is a certain sense of hypocrisy when Fianna Fáil members now try to paint themselves as the guardians of rural life.

There is also the issue of change, which they seem to fail to understand. It is only 18 years since I qualified as a doctor. The treatments of common diseases like diabetes and hypertension I was told to instigate when I first qualified are now obsolete and the current treatments are completely different and were unheard of even 18 months ago. The reason people fear change - the party opposite is trying to use that fear - is that all too often the driver for change is a state of chaos. The chaos of our public finances at present is contributing to a huge need for change. We are focusing on the education system, the health system and the Garda Síochána to try to reflect the changes that are vital to ensure local and national government can provide a quality service to the people in the future.

Some of the Deputies opposite referred to rural Garda stations. While those stations play a massive role in rural life, they are not sacrosanct in the way some think they are. Many of these rural Garda stations were opened when we were still under British rule. Are members of Fianna Fáil suggesting that nothing should change in this country and it should stay as it was on the day the State was founded? Gardaí nowadays do not use bicycles to do their jobs, they use modern transport and modern communications systems. Even 40 or 50 years ago, gardaí did not have access to the sort of telecommunications and radio communications that are used nowadays. Why should we be so stuck with the idea that we must have a block building in every single parish in the way Fianna Fáil suggests? We should be looking to modernise the Garda in a much more effective way. That is the sort of agenda we should be pushing forward.

The same applies to the health services. If we were to follow the sort of principles Fianna Fail is using, we would go back to the dispensing system, which did not serve the people well. We are now moving forward with developments such as primary care centres, moving services into the community and looking after people better. Again, change is coming and while some of it is driven by the financial situation, some of it would happen in any case. The party opposite, if it sees itself returning to power and correcting the mistakes it has made in recent years, should be ready to embrace some of these changes.

When there is destruction of the public finances such as we are now dealing with, the reality is there must be a reduction in the type of services we used to offer. There is no choice. I have no problem saying we must have a reduction in services because we simply do not have the money for them. There will be additional costs for people because although when we had a false economy of construction and borrowed money we were able to give the impression that we somehow did not have to pay for services, it is now coming home to roost that this money is no longer there. We must either cut services or increase taxes and other costs for the general public to try to maintain the current level of services.

This is the third time in my life the party opposite has brought this country to a similar position, and it was all brought about by extravagant spending. However, there was an additional element to the greed we saw in the last decade, namely, there was a corruption of the political life, business life and social life of the country. The party opposite needs to get away from all of that very destructive corruption that was brought into Irish society and it needs to be more reflective of itself.

The Irish people are very resilient and stoic. Unlike what I have heard from Members opposite, the people I meet are facing up to the current challenges. They are not just looking around for people to blame; they are prepared to make the changes and they want to get on with it. They want to see us run this country. The saddest thing about November 2010, when the IMF came into this country, was that the people were almost delighted to see that someone would be making decisions. That is what we saw happen in this country just over one year ago.

Fianna Fáil knows quite well that some of what it talks about here does not have the people out on the streets in the way that it would like, and neither does stoking up fears, talk of €300 inspection fees for septic tanks and the suggestion that rural crime will run rampant because a Garda station here or there is closed. Fianna Fáil knows that is pure rubbish. It is playing to a narrow audience that still supports Fianna Fáil, but the vast majority fully understands the changes that must be made. The vast majority of people know that some of the changes are merely changes we must face up to. We cannot remain static. They also accept that some of the changes we face are due to the fact that the public finances have been utterly decimated by the reckless behaviour of the previous Government in recent years.

We will make tough decisions this year, next year and the year after. If there is one promise that Fine Gael and Labour in Government will make it is that we will try to regain our sovereignty. We will do our best to get the people out of this mess. We will try to get this country working again and to provide the services the people deserve.

In future, the Opposition must change tack on this. We need for the Opposition to be a little more constructive in what it says. If opposition Members disagree with something, they should put their case a little better than in this Private Members' motion. This is a lazy Private Members' motion and it will not stir any interest outside of this House among those about whom we speak. I would have expected a little more considering that Fianna Fáil spent so much time in Government and fully understands how things work.

Photo of Pat DeeringPat Deering (Carlow-Kilkenny, Fine Gael)
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Like previous speakers, I thank the Ceann Comhairle for the opportunity to speak on this Private Members' motion.

As a rural TD, I was appalled to read the motion, and particularly the last sentence, where it "calls on the Government to abandon its anti-rural bias and adopt a fair and balanced approach to the budget". Nothing could be further from the truth.

Never before has agriculture or rural Ireland been mentioned as often in a budget as happened on this occasion. It is hypocrisy from the Deputies opposite to mention this issue when they, in their four-year plan, proposed to reduce the capital agricultural budget by €20 million over the next four years to €150 million, which was totally unacceptable. In this budget, we were in a position in Government - I commend the Minister for Agriculture, Food and Marine, Deputy Coveney - to ensure that the capital budget for the next four years will be €168 million rather than the €150 million those opposite had budgeted for.

In this budget there is a large number of taxation issues which will have a significant effect on agriculture and rural Ireland, a few I which I want to mention. The measures encourage farmers and a return to a career in farming. In the past ten or 15 years, agriculture was treated with disrespect by the vast majority of the outgoing Government. It was unpopular to be a farmer in rural areas or to have anything to do with it. Everybody was encouraged to go and lay blocks, be it in Dublin or in large urban areas.

This budget provided incentives to farm partnership and greater production at farm level. It also stimulates land sales and land transfers. It facilitates new enterprise opportunities in farming and helps the agri-food business innovate and export.

There are a couple of main areas on which I want to dwell. One of the most significant measures introduced in the budget is the new stock relief incentive to encourage farm partnership. For registered farm partnership, the current rate of 25% stock relief will increase to 50% and for certain young trained farmers entering partnerships, a rate of 100% stock relief will be available. This new incentive will run until December 2015 which will encourage an increasing number of farmers into the system where, especially as we approach the ending of the milk quotas in 2015, it will encourage more farmers to develop their quotas.

The stamp duty reduction is important. Budget 2012 reduces the stamp duty rate on agricultural land from 6% to 2% with immediate effect, which is very important. In addition, the half-rate of 1% rate will be applicable on transfers to close relatives up until the end of 2014. This change will substantially reduce the stamp duty payable to the transfer of farms by land gift or sale and it should stimulate the stagnant land market. As Members will be aware, in Ireland land transfers and land mobility is very different from most parts of Europe. I understand that land in Ireland only transfers in one in every 400 years compared to an average of one in every 75 years around Europe.

The capital gains tax relief is also important. Budget 2012 has restructured the retirement relief available on capital gains tax to provide an incentive for early retirement and the transfer of farm assets to the next generation. There has not been a change to the 90% capital acquisitions tax. This means that farms worth up to €2.5 million will continue to be fully exempt from CAT with regard to the transfer to a farmer's son or close relations.

Other tax measures that are beneficial to agri-industry include the additional supports for research and development. The new VAT rate is also to apply to open farms such as pet farms. This is beneficial as the rate increases from 9% to 23%. One of the most important issues, one which was flagged early on and on which we made a commitment in the programme for Government, was the review of the universal social charge and this affects a large number of farmers and seasonal workers in the farming area. Consistent also with the programme for Government on carbon tax, farmers will be able to double the income tax deduction in respect of increased costs arising from the charge in carbon tax. The carbon tax is to increase from €15 to €20 per tonne as and from May 2012 for agricultural diesel. This is very important.

Also, a number of other schemes were introduced such as the AEOS scheme I mentioned earlier. Once we came into Government, the Minister for Agriculture, Food and the Marine did his best to ensure that we had an AEOS scheme. An original scheme was announced with no funding for it.

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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That is incorrect.

Photo of Pat DeeringPat Deering (Carlow-Kilkenny, Fine Gael)
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That is fact. There was no funding for the scheme.

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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Deputy Deering has been given misinformation. The scheme was provided for in Budget 2011.

Photo of Pat DeeringPat Deering (Carlow-Kilkenny, Fine Gael)
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There was absolutely no funding.

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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Just one second, I will impart some information.

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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Acting Chairman, I want to correct the misinformation. This misinformation is not acceptable.

Photo of John McGuinnessJohn McGuinness (Carlow-Kilkenny, Fianna Fail)
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If Deputy Deering gives way, you may, otherwise you may not.

Photo of Pat DeeringPat Deering (Carlow-Kilkenny, Fine Gael)
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I also commend the Minister for reintroducing the TAM scheme, which is very beneficial to rural Ireland.

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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The Minister suspended it earlier in the year.

Photo of Pat DeeringPat Deering (Carlow-Kilkenny, Fine Gael)
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It is being reintroduced. It will create much farming activity in buildings again, which will help as we approach the ending of milk quotas and with regard to the initiatives and the targets of 2020.

It is amazing listening to Fianna Fáil tonight. One of the most regressive developments that ever happened in rural areas, which affects my county and Deputy Moynihan's county, was the closure of the sugar industry. The Fianna Fáil Government must be the only Government that closed down a profitable business.

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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Greencore closed down the sugar industry.

Photo of Pat DeeringPat Deering (Carlow-Kilkenny, Fine Gael)
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Who had the golden share? The Fianna Fáil Government did. Fianna Fáil handed over the sugar industry, a viable industry in this country, and now we are trying to get back what we should never have let go. That was one of the regressive steps. Ireland, in general, both urban and rural, has not got over what happened on that occasion.

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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Greencore closed down the sugar industry.

Photo of Pat DeeringPat Deering (Carlow-Kilkenny, Fine Gael)
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Who had the golden share? Had the previous Government the golden share?

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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The golden share did not have the power to change the decision.

Photo of Pat DeeringPat Deering (Carlow-Kilkenny, Fine Gael)
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Fianna Fáil sold out the sugar industry.

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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That is not factual.

Photo of Pat DeeringPat Deering (Carlow-Kilkenny, Fine Gael)
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It is as simple as this, it sold it out. It had the opportunity to keep the sugar industry here and let it go, which will have a knock-on effect on rural Ireland which we will never get over.

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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Greencore sold it.

Photo of Anthony LawlorAnthony Lawlor (Kildare North, Fine Gael)
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It was the land bank in Carlow in which they were interested.

Photo of John McGuinnessJohn McGuinness (Carlow-Kilkenny, Fianna Fail)
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Deputy Deering to continue.

Photo of Pat DeeringPat Deering (Carlow-Kilkenny, Fine Gael)
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Fianna Fáil wanted to ensure that we had a new town centre in Carlow, and now what do we have? We have a 300 acre site. It is a disgrace - not only in Carlow but, I am sure, in Mallow and around the country.

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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Talk to Greencore. Somebody should introduce Deputy Deering to Greencore.

Photo of Pat DeeringPat Deering (Carlow-Kilkenny, Fine Gael)
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I commend the Minister for the actions he has taken in ensuring that agriculture has been brought to the forefront again. Over the past two to three years, agriculture has been shown to be one of the key drivers of this economy. I commend the Minister's amendment.

Photo of Michael ColreavyMichael Colreavy (Sligo-North Leitrim, Sinn Fein)
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I did not realise the Minister of State, Deputy Kathleen Lynch, was on the injury list. I extend best wishes for a fast recovery.

Photo of Kathleen LynchKathleen Lynch (Cork North Central, Labour)
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I thank Deputy Colreavy.

Photo of Michael ColreavyMichael Colreavy (Sligo-North Leitrim, Sinn Fein)
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She will need to be able to step fairly adroitly through matters over the next couple of months.

On the Private Members' business, septic tank charges, rural Garda station closures, cuts in agriculture supports, cuts in community groups funding, increases in the price of diesel fuel, increases in school transport charges and threats to the very existence of smaller rural schools are only a few of the attacks on rural communities contained within budget 2012.

Photo of Anthony LawlorAnthony Lawlor (Kildare North, Fine Gael)
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Deputy Colreavy should look at what his party is doing up the North.

Photo of Michael ColreavyMichael Colreavy (Sligo-North Leitrim, Sinn Fein)
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Add to this third level education fee charges and more than halving grants for most third level students in Sligo-Leitrim because of the proximity changes.

Outside of the budget entirely, the HSE is now considering the wholesale closure of public nursing homes with the threat of moving elderly, vulnerable people to private facilities many miles from their home areas. It is doing so because the Government refuses to tax the wealthy and refuses to make financial speculators carry some responsibility for their reckless gambles. The Government continues to operate under the illusion that our economy can recover although we take ever more money from the pockets of the very people who sustain it locally and nationally. In this process, Fine Gael deserves some recognition for arranging very cleverly for a Labour Party Minister to introduce swinging cuts in the Dáil on Monday of last week. He sat down to applause from Fine Gael backbenchers while the Labour backbenchers sat ashen-faced. Far be it from me to offer any advice to Labour Party Members, but I believe they really should ascertain the intentions and the actions of their new best friends in Fine Gael.

In agriculture, budget 2012 provides for a 10% reduction in respect of REPS, no commitment to opening the AEOS scheme in 2012 and restrictive changes to disadvantaged area payments. Farmers in disadvantaged areas will probably end up subsidising those in more advantaged areas just as the truly disadvantaged will be sacrificed to support the better-off generally throughout the State.

At the weekend I listened as Government parties' representatives described budget 2012 on local radio as not being too bad and they stated the bad bits had to be introduced because the previous Government made them do so. I felt for these spokespersons because they are decent people. However, they were saying to their own community that the budget will not be too bad for them, yet they knew as they said it that, this year and in the following years, decisions will be made that will have a devastating effect not only on rural areas but on the people of this nation.

I spoke with local people extensively over the weekend. People in Sligo-Leitrim are normally fairly laid back, a bit like myself, but they are now very angry. They want truth, leadership and change but they got none of these in this disgraceful budget.

Photo of Martin FerrisMartin Ferris (Kerry North-West Limerick, Sinn Fein)
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I thought when I was listening to Deputy Pat Deering that Fine Gael would open the sugar factories in Mallow and in Carlow. I was hoping he would conclude with such a statement but, unfortunately, he did not deliver.

Photo of Pat DeeringPat Deering (Carlow-Kilkenny, Fine Gael)
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We did not close them.

Photo of Martin FerrisMartin Ferris (Kerry North-West Limerick, Sinn Fein)
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Having listened to his commentary that the closure was the decision of Fianna Fáil, which I do not dispute, I must state the reality is that the Deputy's party has an opportunity to open the factories if there is sufficient political will to put people back to work. I await that decision with bated breath.

One austerity measure that will affect many in rural areas, and my county in particular, is that to end funding for People with Disabilities Ireland, PWDI, from the end of this month. This will have a massive impact on Kerry Network for People with Disabilities as up to 70% of its funding came from PWDI. Its grant from the HSE had been already cut by 5%. The effect is that, in total, up to 16,000 people, including families, will be affected. There is a great effort being made by community groups and individuals to maintain the service. It is invaluable to those most in need. A large number of disabled people and their families will be at a real loss and it will greatly disimprove the quality of life of all concerned. The network was established in 1996 following consultation with people with disabilities. That clearly has been one of the reasons for its effectiveness. Withdrawing the funding, effectively leaving a death sentence hanging over the project, is an extremely retrograde step. It reflects the overall retrograde and anti-social nature of the austerity programme being implemented by this Government.

Another such step is the attack on the community employment schemes. These have been a chink of light to the 22,000 operators and approximately 500,000 who avail of the services and training. The schemes are of significant benefit to rural people and those in urban centres also. The centres around the country are a valuable resource for many groups but the cut to their budget, of 66%, will mean many will be forced to close their doors. Not only will that mean a reduction in the income of those directly concerned but also, and more important, it will be regarded by many participating on CE schemes as closing off the possibility of their improving their circumstances.

I referred last week to a number of people affected by this cut. It is clear from the many who have contacted elected representatives that a considerable number are in despair over their future and that of their children. I read two very painful letters in this regard into the record last week.

The motion refers to other similarly negative cuts, including the cuts to the farm assist scheme and the disadvantaged areas scheme. These will cut significantly the incomes of farm households that are already struggling. I refer to those on the lower, marginal level and who are trying to remain viable and to retain the quality of life of their families.

Apart from the increasing charges for those whose children are using public transport to go to school, the cuts to education overall will seriously impair not only the level of services provided but also the very ability of people to gain access to education. In combination, the budget and the overall austerity programme will further plunge the country into recession and exacerbate the serious consequences in all aspects of life.

The motion refers to the budget's anti-rural bias. There is certainly a perception that there is such a bias affecting many communities. The Government, no more than its predecessor, which was led by the party that tabled this motion, is not discriminating between urban and rural. It is not so much anti-rural as anti-community, anti-growth, anti-jobs, anti-enterprise, anti-development and anti-social.

I heard Deputy Ó Ríordáin from the Labour Party claim his colleague Deputy Nulty had acted selfishly in not supporting the budget. Surely he ought to applaud the courage of Deputy Nulty because his certainly was a courageous stand to take. He stood by what he was elected for and on what he campaigned. He was very badly let down by Frankfurt-Labour.

Photo of Jonathan O'BrienJonathan O'Brien (Cork North Central, Sinn Fein)
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I thank Fianna Fáil for tabling this motion because it allows us to have a debate on rural life. While it may seem strange to the Minister of State, Deputy Kathleen Lynch, that one who lives in the heart of Cork city wishes to speak on rural affairs, she will know my constituency is 55% rural. We get to hear at first hand some of the issues and problems that towns and villages throughout the constituency are experiencing. Rural people have the same right to a decent standard of living and services as those of us who live in the city. Sometimes we take those services for granted. Rural dwellers should have the same right of access to services.

I could point out the irony of the points made by Fianna Fáil in the motion. The majority of the measures it condemns, if not all, were proposed policies of Fianna Fáil. Far be it from me to criticise Fianna Fáil for tabling such a motion. Some would say it is very opportunistic of it to table such a motion on measures it proposed itself, such as septic tank charges and rural school transport charges, but that is not to say the points contained in the motion are any less valid. They are valid regardless of who tabled the motion.

Successive Governments, led by all the establishment parties, have presided over the economic and demographic decline in rural areas. I refer to bad policy and incorrect decisions being made at the incorrect time, such as the failure to be a strong advocate for Irish farmers, fishermen and rural communities as a whole. What has occurred did not happen by accident. It has occurred over a period. It is unfair to say it has happened since March because that is not the case.

This has been happening for the last 15 or 20 years thanks to the policies of successive Governments.

There is no doubt that the closure of Garda stations will have an impact on rural communities. If an impact analysis was conducted on the effects of closing Garda stations in rural communities the results were not made available to Opposition Members. When the Garda Commissioner appeared before the Joint Committee on Justice, Defence and Equality, we did not get a comprehensive answer in terms of the criteria used to make decisions on closing stations. We also need clarity on who is responsible for these decisions. The Minister has stated that the Garda Commissioner drew up the list but the latter indicated that he was only making recommendations and the Minister took the final decision. We need to see transparency on this issue. Garda stations are not just deterrents to crime in rural areas. They are part and parcel of the fabric of rural Ireland and for that reason their closure is a retrograde step.

Photo of Brian StanleyBrian Stanley (Laois-Offaly, Sinn Fein)
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I welcome the opportunity to contribute to this debate. It is unfortunate that the party putting forward the Private Members' motion is responsible for many of the policies they are now criticising. This year's budget reads like a horror story. The tax on septic tanks was to come before the Dáil this week but it is now being postponed until January. Local residents will be paying the price for the failure of consecutive Governments since 1975 to implement EU regulations. The household charge will also affect rural householders. The local government fund will be cut by €165 million, and 84% of this figure is intended to be met by the charge. We can see how that is going to run into difficulties.

Two serious attacks are being made against our communities. The first is against community employment schemes, which provide essential services that would otherwise never be provided. The private and public sectors either will not or cannot provide these services, which range from homework clubs, crèches and meals on wheels to environmental works in villages and towns. As a former participant and sponsor of community employment schemes, I fear the proposed cuts will result in the closure of many of these schemes. They are dependent on the material grant for rents. Education and training are essential elements of community employment. I was a beneficiary of a training grant in the 1990s. It helps people to get into employment but it is being killed by the budget measures. We are being told that schemes will be not allowed to lapse but they are useless if the money for education and training is removed.

The second attack is against local government services. Rural households are being asked to pay ever increasing charges from their depleted resources while the funding from central Government is being diverted from local government to bail out the banks. We can see that in the €165 million being cut from the local government fund by the budget. The people in our communities did not cause the banking crisis that has brought the economy to this juncture. I ask the Government to revisit this measure because these people should not be asked to pay the price for it.

Photo of Mattie McGrathMattie McGrath (Tipperary South, Independent)
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I welcome the Minister of State at the Department of Health, Deputy Kathleen Lynch, and wish her well after her week long sojourn. I look forward to travelling to the east coast with her next week or the week after. This is an excellent motion and it cuts to the nub of the matter. The motion "condemns the Government for introducing a series of budgetary measures that discriminate against those who can least afford it and particularly those in rural Ireland". I could not say it better myself.

Photo of Anthony LawlorAnthony Lawlor (Kildare North, Fine Gael)
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He will try anyway.

Photo of Mattie McGrathMattie McGrath (Tipperary South, Independent)
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Perhaps I will but we at one on this issue. It is an outrageous attack on ordinary people, including the poor, the working class and the new poor.

Photo of Anthony LawlorAnthony Lawlor (Kildare North, Fine Gael)
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He is wearing the green jumper.

Photo of Mattie McGrathMattie McGrath (Tipperary South, Independent)
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It is devastating blow and the Government Members can heckle all they want. Some of them were not here last time but many of them were condemning everything out of hand.

Photo of Anthony LawlorAnthony Lawlor (Kildare North, Fine Gael)
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Was he sitting in the same place last time?

Photo of Mattie McGrathMattie McGrath (Tipperary South, Independent)
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I was of course. I am glad to be sitting here again and I hope to be back on the other side some other time. I do not know if the Members opposite will be coming back because the Minister for Communications, Energy and Natural Resources recently told us that the last election was an extraordinary event. I told him that the next election will be even more extraordinary.

Photo of Anthony LawlorAnthony Lawlor (Kildare North, Fine Gael)
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The man beside him went to hospital.

Photo of Mattie McGrathMattie McGrath (Tipperary South, Independent)
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In regard to attacks on disadvantaged areas and farm assist, farming will get us out of the recession but the poorest areas have been hit hardest. The IFA's lobbying paid off for the strong Fine Gael farmers. There is nobody on the Labour Party benches. I could call them a name used 50 years ago but we all know what I mean.

I will not speak about disability cuts because, thankfully, they have been reversed. The late Brian Lenihan had that measure in his budget but he dropped it after we spoke to him about it. However, the measure was not shredded and the lazy departmental officials, who are interested in protecting the rich and their own high salaries - I am speaking about those on salaries of €100,000 to €200,000-----

Photo of Anthony LawlorAnthony Lawlor (Kildare North, Fine Gael)
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Like yourself.

Photo of Mattie McGrathMattie McGrath (Tipperary South, Independent)
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----- brought it back in again as a simple way to save a few million euro. They were not thinking about people.

We will only have memories of Garda stations after the Government has closed them. We can show pictures to our children so they can see what we used to have in rural areas.

The Minister for Education and Skills has a death wish for small schools. They are the best schools we ever had and they produce the best results. In rural Ireland, the school will keep people in an area but if it is closed they will drift to bigger areas.

Carers and home helps keep elderly people out of hospitals. The hospitals have been closed. I do not know what the Government wants us to do. It is driving us into the ground. The people who are caring for the elderly in their homes are being hit.

This budget was a well laid plan to attack rural Ireland, the weak, the lower paid and the new poor. The Government should be ashamed of itself.

Photo of Tom FlemingTom Fleming (Kerry South, Independent)
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I welcome the opportunity to speak on this motion. The value of the community employment schemes cannot be underestimated. They have allowed communities to remain vibrant and empowered people to carry out vital projects, deliver services and provide support for voluntary centres, carers, crèches, elderly day care centres, tidy towns, meals on wheels and numerous other activities. The proposed reduction of 66% will have a devastating effect on all categories of people and their quality of life. It will result in the closure of thousands of voluntary community services around the country.

I give credit to the Government for its emphasis on getting the unemployed back to work but this unnecessary cutback flies in the face of its aspirations to develop work and practical skills. I urge the Government to reverse this regressive anti-community measure. The Minister of State with responsibility for community employment schemes, Deputy Cannon, fully realises the negative impact this measure will have, as he is a rural Deputy who has seen the positivity and social and economic enhancement provided by the schemes in his own constituency in the west. I urge him, as the Minister of State, to use all his negotiating skills and powers in co-operation with the Taoiseach and his fellow Ministers to reverse this measure. The potential that exists to further advance and maintain these schemes to increase their employment potential and enhance the quality of life of all the people I have referred to is immeasurable.