Dáil debates

Tuesday, 16 April 2013

Ceisteanna - Questions (Resumed)

Cabinet Committee Meetings

4:35 pm

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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To ask the Taoiseach the Cabinet committee meetings planned for January. [2314/13]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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To ask the Taoiseach when the Cabinet Committee on Job Creation met last. [2317/13]

Photo of Joe HigginsJoe Higgins (Dublin West, Socialist Party)
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To ask the Taoiseach the Cabinet sub committees that have met this year and the number of times each has met. [2338/13]

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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To ask the Taoiseach the number of times the Cabinet Committee on Health has met since the beginning of the year. [3946/13]

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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To ask the Taoiseach the number of times the Cabinet Committee on Mortgage Arrears has met since the beginning of the year. [3947/13]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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To ask the Taoiseach when he expects the report from each Department on their short, medium and long term aims for job creation; and if he will make a statement on the matter. [3968/13]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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To ask the Taoiseach if there was a recent meeting of the Cabinet sub Committee on European Affairs. [8387/13]

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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To ask the Taoiseach when the Economic Management Council will next meet with the Irish banks. [2329/13]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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To ask the Taoiseach the number of times the Economic Management Council has met since Budget 2013 was announced [3966/13]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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To ask the Taoiseach the number of Cabinet committees he has attended since January. [10965/13]

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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To ask the Taoiseach the number of occasions the which the Cabinet sub Committee on Health has met since the beginning of the year; and the dates of same. [11052/13]

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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To ask the Taoiseach when the next meeting of the Cabinet sub Committee on Health will be held. [11053/13]

Photo of Joe HigginsJoe Higgins (Dublin West, Socialist Party)
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To ask the Taoiseach if he will report on the most recent contacts between the Economic Management Council and the banks. [12516/13]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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To ask the Taoiseach the number of times the Economic Management Council has met since January. [12336/13]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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To ask the Taoiseach the number of times the Cabinet sub Committee on Mortgage Arrears and Credit Availability has met since it was set up [13613/13]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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To ask the Taoiseach when the Cabinet Committee on Social Policy met last [13614/13]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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To ask the Taoiseach the number of times the Economic Management Council has met since January. [14638/13]

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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To ask the Taoiseach when the Cabinet sub Committee on Economic Recovery and Jobs last met. [15012/13]

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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To ask the Taoiseach the number of times the Economic Management Council has met since this year's Budget. [15014/13]

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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To ask the Taoiseach the number of times that the Cabinet sub Committee on Health has met in 2013. [15015/13]

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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To ask the Taoiseach if the Economic Management Council intends to meet the banks in the coming period; and if he will make a statement on the matter. [15016/13]

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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To ask the Taoiseach if he will set out the members of the Cabinet Committee on Mortgage Arrears. [15994/13]

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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To ask the Taoiseach when the Economic Management Council will next meet. [17263/13]

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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To ask the Taoiseach the number of times the Cabinet Committee on Mortgage Arrears has met since its establishment. [16010/13]

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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I propose to take Questions Nos. 6 to 28, inclusive, and 173 together.

Three Cabinet committee meetings were held in January - economic recovery and jobs, health, and mortgage arrears and credit availability. So far this year there have been 16 Cabinet committee meetings. The committees on economic recovery and jobs, social policy, and mortgage arrears and credit availability have each met three times, the committees on health and economic infrastructure twice, and the committees on public service reform, European affairs, and Irish and the Gaeltacht once.

The Cabinet committee on European affairs last met on 5 March. The committee on health met on 14 January and 11 February, and the next meeting is scheduled for tomorrow.

The Cabinet committee on mortgage arrears has met 11 times since it was established. I chair this committee and its members are the Tánaiste, the Ministers for Finance; Public Expenditure and Reform; Social Protection; Environment, Community and Local Government; Justice and Equality; and Jobs, Enterprise and Innovation, and the Minister of State with responsibility for housing and planning.

The Cabinet committees on social policy, and economic recovery and jobs last met yesterday. A sub-committee of the committee on economic recovery and jobs, dealing specifically with pathways to work, has met four times so far this year. The Government's focus continues to be devising and implementing effective, long-term, pro-growth strategies to create jobs and get the long-term unemployed back into employment. We launched the second Action Plan for Jobs 2013 in February following extensive discussions with Ministers on how each Department can assist in our job creation priority. It builds on the success of last year’s plan, which saw an implementation rate of 92% of actions to support economic growth and jobs. This year’s plan contains more than 300 distinct actions to be implemented in 2013 by all Departments and 46 State agencies. This is a whole-of-Government strategy and incorporates the publication of quarterly progress reports with targets.

The Economic Management Council has met 11 times so far this year and 14 times since the announcement of budget 2013. The next meeting is scheduled for 24 April. The members of the council met representatives of the banks twice in 2012, the last time on 26 June. As part of this ongoing process, I expect that the Economic Management Council will meet representatives of the banks as required during 2013 to ensure that the banking sector supports economic recovery.

Over recent months I have introduced the practice of dedicating one Monday per month for meetings of Cabinet committees. Yesterday, I chaired meetings of the following committees: social policy; economic recovery and jobs; mortgage arrears and credit availability; economic infrastructure; Irish and the Gaeltacht; and the cabinet sub-committee on pathways to work.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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I thank the Taoiseach for his reply. How frequently has the Cabinet committee on health met? Is he satisfied that committee is meeting sufficiently frequently and achieving any objectives? It is incredible that the White Paper on health insurance, which was meant to be published before Christmas, has yet to be published. One wonders what the Cabinet committee on health is doing. Before the general election we heard all about the Dutch model and money following the patient. They were probably the two greatest sound bites of any election campaign. Many of the electorate wondered what the Dutch model was about and we are still none the wiser two years on. There is very little detailed work done on it and it is important for the Taoiseach to outline if the Cabinet committee on health will meet more frequently now, in particular to process the White Paper on health insurance.

Has the committee discussed the health insurance issue? Is that an issue of concern to the Taoiseach because it seems to be in a death spiral? There is a high level of market failure in our health insurance industry and people are leaving in their thousands because of the high cost of premia. The VHI needs a capital injection of €200 million to stay functioning in the coming weeks. It is not clear whether the Government has decided to provide for that injection.

The three and six month waiting times have increased by more than 40%, and these are the world benchmarks by which the National Treatment Purchase Fund has always set its targets. The paediatric waiting benchmark is three months. When the Government came into office these targets were changed overnight to nine and 12 months to put a better gloss on the figures. It was laid bare at the weekend in Susan Mitchell's report in The Sunday Business Post, which detailed a 40% increase in these waiting lists contrary to the spin. Given these facts, is it not time for the health committee to meet more frequently than it has to get to grips with these and many other issues?

The Taoiseach indicated the Cabinet committee on mortgages will meet tomorrow. Apart from this meeting, it has met only once since it was established in July 2012. Will the Taoiseach indicate whether he is satisfied the banks retain a veto over the resolution of household debt? Banks have power and a veto over many customers who are very concerned not only about repossession but also about the terms and conditions banks may apply to mortgage holders with regard to resolving mortgage arrears issues. It is without doubt the number one issue facing many young couples, who feel many of the elites, such as bankers, have been provided for while mortgage holders have not. It has taken a long time to put in place the legislation and there is no sense the mortgage holder will get a fair deal or a reasonable outcome in negotiations with the banks. Most Deputies witness this in discussions with those in mortgage arrears. There is no confidence the issue will be dealt with.

Will the Taoiseach indicate whether the committee has examined the potential recapitalisation of the banks which will be required in the event of a meaningful engagement with this issue once and for all? The deputy governor of the Central Bank raised for the first time in fairly stark terms the situation pertaining to impaired SME loans which, in her estimation, is quite a huge figure. When this is added to the banks' mortgage books an issue arises as to whether the banks will need to be further recapitalised. Perhaps the Taoiseach will clarify this for us.

Will the Taoiseach indicate whether the Cabinet agreed today a new initiative on capital investment? Last year we were told €2.5 billion was to be invested utilising funding from the National Pensions Reserve Fund through public private partnerships. Has any of this money being used? Has there been any follow-through on this initiative? How many jobs have been created? How much of the €2.5 billion has been spent? Will the Taoiseach outline the results which have flown from this initiative, which was announced last July by the Government?

With regard to unemployment, the figure in the south east is 18.8%, which is 8% higher than the figure in the Dublin region. The figure in the midlands is between 16.5% and 16.9%. The plethora of plans and announcements has not had any impact on real job numbers. Emigration keeps the figure stable, but no fundamental inroads have been made by any of the initiatives announced with regard to getting more people back to work.

4:45 pm

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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Before the Taoiseach replies I must say it is awkward for me in the Chair because these questions relate to the number of times each sub-committee met. As Deputy Martin, who sat at Cabinet in numerous Governments, is aware, questions relating to Cabinet committees are subject to the constitutional restriction with regard to collective responsibility of the Government. Therefore it is not in order to ask questions relating to what went on at meetings of Cabinet sub-committees. I wish to put this on the record so we are conscious of the questions we pose. These are the rules by which we must abide.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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I understand the difficulty the Ceann Comhairle has here. Deputy Martin raised three issues, namely, health, mortgages and jobs. The role of the Cabinet committee on health is to provide for political oversight on the development and delivery of the major health service reforms in line with the commitments in the programme for Government. It has met twice so far in 2013, on 14 January and 11 February. The next meeting is scheduled for this month. Deputy Martin is aware of the programme for Government, which sets out the reform and change agenda aimed at improving the model of Irish health care and delivering better services in the community and is also focused on preventative measures. It commits to developing a universal single tier health service which guarantees access for everybody to health care based on need as distinct to income. The document, Future Health A Strategic Framework for Reform of the Health Service 2012-2015, published last November, sets out the main health care reforms to be introduced in the coming years as the major building blocks for the introduction of universal health insurance in 2016. I welcome the strategy in place which sets out 48 specific actions which give a clear sense of the work which lies ahead and the timelines to accomplish this. The Cabinet committee on health will continue to monitor the delivery of these major key reforms.

We have seen a number of developments recently. These included the publication of the preliminary paper on universal health insurance setting out progress towards developing a White Paper on universal health insurance as was committed to; the development of policy proposals for the concept of money following the patient, implementation of which is to commence later this year following a period of consultation with those involved; a new implementation framework for disability services, moving to a new model of individualised services whereby the allocation is given to the person involved who might be in a far better position to know what might be more appropriate for his or her particular needs than it being provided centrally; and work on the hospital groups, which Deputies are aware is at an advanced stage as the first step to moving towards the establishment of hospital trusts, which is a key requirement for universal health insurance. I expect the Minister to be in a position to finalise the hospital groupings, and the documents in respect of the future of local hospitals, in the coming weeks.

More generally, the Government has made good progress with regard to health service provision and more general changes, and some developments are worth noting. On 20 February the EU Commission approved the new permanent risk equalisation scheme in the Irish private health insurance market. The national early warning score for Ireland was launched. We now have the first national clinical guides to recognise and respond to patients in acute hospitals whose condition is deteriorating. We have had the launch of healthy Ireland, a facility to support a whole of government and whole of society approach to disease prevention and health and well-being promotion. As I have often stated, we understand from health professionals that we face having 250,000 diabetics in the country in the coming years. Most of these cases are preventable through activity, exercise and diet information.

Continued progress has been made in achieving improvements in hospital access targets and reduced waiting times. The new deal with the pharmaceutical companies will reduce the medicines bill by €400 million over the next three years. Approximately 250 new mental health posts have been filled, with further recruitment progressing. We have also increased the budget for the National Office for Suicide Prevention to more than €8.1 million. Progress is being made in 2013 with regard to extending free GP care to people with long-term illness. An additional €35 million has been allocated for further development of mental health services, including the recruitment of more than 470 additional staff. A review of the fair deal scheme will be completed in 2013. We have new governance arrangements to progress the national children's hospital. We also have a new legal framework for the imposition of charges on all private inpatients in public hospitals. These are some of the issues which have been raised during the course of the deliberations of the health committee.

With regard to mortgage arrears, the Cabinet committee was established last year and its role includes overseeing the effective implementation on a cross-departmental basis of the Government's response to the issue, agreeing a detailed implementation plan for the recommendations of the interdepartmental report on mortgage arrears and ensuring proper priority of this implementation by Departments and agencies.

Its role is also to develop any further measures in regard to mortgage arrears required in light of the developments and to oversee and ensure facilities for sufficient finance for small and medium enterprises, which has been a real difficulty for so many small firms. That matter has been raised by Deputies of all parties. Its role also includes monitoring, in conjunction with the Central Bank, the performance of lending institutions against agreed indicators and targets in those areas.

The director of the insolvency agency will announce details of the conditions that set out opportunities for people who may enter into the personal insolvency arena, as well as how they are recommended costs in respect of having a decent standard of living and working out a solution for their particular problem. I understand that announcement will be made on Thursday afternoon.

We welcome the publication by the Central Bank and have had presentations by its Governor concerning specific time-bound targets for the six main banks to ensure early and measurable progress towards its objective. This was also referred to at the meeting yesterday. Those targets will become progressively more demanding as time goes on, so that a solution will have been proposed for the vast majority of distressed borrowers by the end of 2014. A 20% offer was to be made to persons by banks by the end of July but that probably will not appear until the quarterly reports come in.

In the coming months, the Central Bank will also set quarterly targets for the conclusion of sustainable decisions and solutions, and for the subsequent performance of those solutions. There is an issue of psychological relief for people who will find that an agreement has been reached in their particular circumstances which, as Deputies will know, are all different.

As regards whether there will be write-downs as a result of the targets, the Government's approach has been clear on this matter. Mortgage holders who can meet their own obligations should continue to do so - the vast majority do - so that appropriate assistance should only be afforded to those mortgage holders or other borrowers who are experiencing real or genuine difficulties in meeting their commitments. That approach is recommended by the Keane report.

Clearly, the Central Bank has obligations in respect of its licensing arrangements and will continue to examine the appropriateness of capital requirements in the context of mortgage arrears in the case of the specified credit institutions. The Central Bank will have to consider the imposition of capital add-ons where any of a range of things apply, such as if credit institutions have poor mortgage arrears resolution strategies, where they are not well executed or where the public targets set have not been met.

The most recent capital injection of the covered banks took place in 2011 and arose from the Central Bank's prudential capital assessment review in March 2011. That PCAR assessment was based on macroeconomic and loan loss assumptions on all parts of the loan book, including mortgages of the covered banks. The Central Bank has clearly stated that banks now have a substantial buffer with which to absorb losses on their mortgage portfolios.

That issue, concerning a reasonable standard of living and reasonable living expenses, will be outlined by the director of the insolvency agency on Thursday afternoon. If a person decides to enter into that process, the issues of a reasonable standard of living and reasonable living expenses - contrary to a perception that is out there - are not binding on the persons involved. Therefore, issues that were raised in recent weeks do not apply.

I have already referred to the question of jobs during Leaders' Questions. The problem we face as a country is that we have rebuilt our international reputation which has been accepted because of the performance economy here. I have met with company representatives who are exceptionally well pleased with the quality of the talent pool available to their sectors, be they pharmaceutical, IT, ICT or others. Exports have been strong despite the poor conditions of some other European countries. The corporate tax rate is clear and that export performance has been in double digit figures. From that perspective, the international element of the economy has been performing well. The problem and challenge for us is to get our indigenous economy performing well, which means having opportunities to create jobs and get things moving. That is why the Government has taken a number of decisions on access to credit for small and medium enterprises. The problem has been focused on by the Government whereby there are specific targets for banks to provide new lending this year, as distinct from restructured loans. In addition, the microfinance agency is involved along with other elements of the partial loan credit guarantee system. The €2.5 billion stimulus package that was announced by the Minister for Public Expenditure and Reform, Deputy Howlin, is tied up with the public private partnerships. As Deputies will be aware, this process is both complex and time consuming. I will provide the House with an update when I have the details of the projects, ranging from Grangegorman to the schools and roads developments. That is where the challenge lies.

Deputy Martin mentioned NewERA and the National Pensions Reserve Fund.

4:55 pm

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

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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We did not actually discuss that element of a stimulus package but we will. What I intend is that the Government should have regular specific meetings focused on jobs and job creation. We identified 17 particular actions that could and should be taken to stimulate growth in the indigenous economy and to create jobs. We will follow through on that and if the House so wishes, we can discuss these matters on a regular basis.

Photo of Joe HigginsJoe Higgins (Dublin West, Socialist Party)
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The Economic Management Council is obviously the most powerful Government sub-committee, comprising the Taoiseach, the Tánaiste, the Minister for Finance and the Minister for Public Expenditure and Reform. Does that sub-committee have a role in industrial relations policy? Was it the policy of the Economic Management Council that the Minister for Public Expenditure and Reform should threaten public sector workers with a 7% pay cut across the board if they rejected the Croke Park II proposals?

In view of the fact that in the last hour SIPTU workers have rejected the Croke Park II proposals by 54% to 46%, will the Economic Management Council now have a role? Will the Government and the council respect that vote? Will the Taoiseach declare that he will not, in any sense, attempt to victimise nurses, teachers and other public sector workers? It would be absolutely reprehensible if the Taoiseach were to take the line that was outlined by the Minister for Public Expenditure and Reform.

Does the Taoiseach agree that the rejection by public sector workers - which is now inevitable because it will be defeated tomorrow - is because Croke Park II was an attack on workers allowances, overtime entitlements and that this would decimate their income?

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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I am sorry, Deputy, but we are not dealing with the rejection of a pay-related scheme.

Photo of Joe HigginsJoe Higgins (Dublin West, Socialist Party)
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Yes. It would decimate their income and is a critical part of their pay, despite the Government's propaganda about non-core pay not being touched.

As a result of this rejection of the Croke Park II proposals by SIPTU and other public sector workers, will the Economic Management Council and the Government now recognise that austerity has run its course and is a disaster for workers and society? People are weary of the cuts and the thousands on the streets demonstrating against the property tax on Saturday was further evidence of that. Will the Taoiseach now convene an emergency meeting of the Economic Management Council to overturn this disastrous policy which even the former boss of the IMF in Ireland has disowned as a disaster? He should end this disastrous policy. The Taoiseach has just said he wants to develop the indigenous economy.

Does he not see the contradiction whereby the Government will never develop the indigenous economy while it implements savage cuts to workers' living standards? In this instance, it wishes to take €1 billion from the pockets of low and middle income public sector workers.

5:05 pm

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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Sorry, we cannot stray into a general discussion or debate on the economy. These are particular questions about the number of times Cabinet sub-committees met, as well as questions on whether the Economic Management Council met the banks - full stop. It is not a general discussion on the economy because there are two other Deputies with questions here and we have 12 minutes left.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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I can state to Deputy Higgins that the Economic Management Council meets on a regular basis. Moreover, it deals with issues in a preparatory sense before they go to the Cabinet for its approval. While I am aware of the decision taken here, as I told Deputy Mattie McGrath earlier during Leaders' Questions, the Government has set out its figures for this year in respect of €300 million of savings. These are central and are a fundamental element of what the Government must do. One can only cut services to a point. It always is a challenge to reduce the level of public services that come to be taken for granted. I remind Deputy Higgins that the Government did not cut back on any social welfare entitlement, did not increase income tax and took 330,000 people out of the requirement for the universal service charge.

Photo of Timmy DooleyTimmy Dooley (Clare, Fianna Fail)
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That is the reason the Labour Party is doing so well.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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It restored the minimum wage and reduced the rate of VAT, which sustained and increased employment in the hospitality sector by 10,000. Moreover, the Government has made available a range of opportunities in order that small and medium-sized enterprises can grow in Ireland. The latter is an issue on which the Government will concentrate because I recognise that were one to bring in 1,000 industries next week, the competency and range of skills that exist on the live register clearly should be perceived as a resource and not just as someone's intention to regard it as a dole queue in waiting, because these are people who have experience and competence and who in the vast majority of cases wish to contribute and to get the job. In that sense, it will not change unless there is an incentive and opportunity for that kind of development to take place. This is the reason the Government unashamedly has gone after requiring banks to have new lending for small and medium-sized enterprises, as well as for specific sectors with the microfinance or the partial loan credit guarantee. I also refer to the implications for small service contractors through the stimulus package of €2.5 billion and the opportunities that lie ahead. This is where one must get the economy moving again and where one seeks to have tradesmen and contractors out working, namely, by building schools and through the provision of primary centres, as well as the opportunities that will exist under schemes such as a retrofit for energy efficiency for residential homes.

Deputy Higgins should note this will be achieved through creative ways of looking at how it can be provided.

Photo of Joe HigginsJoe Higgins (Dublin West, Socialist Party)
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Is the Government going to cut pay?

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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It is not going to happen through the mechanism of someone coming in and saying: "There you are, here is more money for you, here is another cheque". Yes, austerity is difficult to deal with and yes, fiscal discipline is difficult to deal with. However, in comparison with other European countries, which face far more difficult situations at present, our position is difficult but yet our growth patterns are heading in the right direction. We need to build on that and I wish to see people in the constituencies of Deputies Higgins and Boyd Barrett having the opportunity to reap the benefits of the challenge through which we all are coming, in order that jobs can be created in everyone's part of the country and to avoid raising a generation that does not have any hope and which believes that politics does not work for them.

Photo of Joe HigginsJoe Higgins (Dublin West, Socialist Party)
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What about the low-paid public sector constituents? Will the Government attempt to cut their pay?

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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I call Deputy Mac Lochlainn on behalf of Deputy Adams.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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We will reflect on the decision now.

Photo of Pádraig Mac LochlainnPádraig Mac Lochlainn (Donegal North East, Sinn Fein)
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When one considers the scale of the crisis, which affects more than 185,000 households, is the Taoiseach satisfied the committee on mortgage arrears is meeting sufficiently regularly? Were one to put together all those families, it would fill Croke Park five times. This demonstrates the seriousness of this profound crisis, in which one in four mortgages across the State is now in distress. I took the Personal Insolvency Bill on behalf of Sinn Féin and sat through approximately 14 or 15 hours of debate on it. Sinn Féin and others pressed repeatedly to remove the veto from the banks in that process because we thought the banks would not have the necessary compunction to do the right thing, that is, to engage and to be serious. Unfortunately, however, our attempts and amendments were rejected repeatedly. Consequently, the aforementioned Bill will be no panacea. I note the worrying messages, both domestically and internationally, that are asking banks here to go after families and to engage in repossessions.

As a west of Ireland man, the Taoiseach knows the scale of the crisis in his part of the world. During the recess, I spoke to many people in County Donegal about its impact and they are deeply concerned, particularly those who had worked in that sector and who best understand the scale of the extant personal debt crisis. Deputy Mathews, who is in the Chamber, warned a long time ago that this issue was as big a crisis as the issue of recapitalisation and bondholders. Now that we are getting to the problem, some sense of urgency and realism is needed within the Cabinet.

This takes me to my final set of questions, which pertain to the Economic Management Council and engagement with the banks. First, the Taoiseach has indicated the Government intends to reverse the Dunne judgment and will introduce amending legislation, including the land and conveyancing law reform Bill and so on. This is causing serious concern. For example, has the Government discussed with the banks the rate of repossessions it seeks? Is that the type of conversation it is having? Has the Government discussed the issue of debt write-downs or is the scope for so doing being discussed?

I wish to revisit the issue of lending to small businesses. As the Taoiseach is aware, the representative groups for small businesses have been telling Members repeatedly - as any Deputy would know from talking to people involved in small businesses - there is a real problem with getting a credit flow to them. This obviously would be of critical assistance to developing the economy across the State in particular, and I seek the Taoiseach's views in this regard. On the mortgage arrears crisis, how many times has the Economic Management Council met this year? Has the Government grasped the urgency of the scale of this crisis and how serious it would get were it to go after people in the manner suggested?

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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I call Deputy Boyd Barrett, who otherwise might not get in.

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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Does the Taoiseach agree the decision by members of SIPTU to reject the Croke Park II deal represents an earthquake of opposition in the labour movement to the policies of austerity? I ask, given this is a union that, wrongly in my opinion, has gone along with partnership deals with the Government for many years. In this case, while it recommended this deal, on the Taoiseach's encouragement, it has been rejected by the largest trade union in the country and as a consequence, the ICTU will reject the Croke Park II proposals. Is it not a stinging indictment of the failure of the Economic Management Council, which is charged with recommending overall economic policy, that the heart of the labour movement has said "No" to what the Government is proposing, as its members cannot take any more? Is it not time for an emergency meeting of the Economic Management Council to consider seriously what organised working people in this country are telling the Government about the impact of its policies on them and on the economy?

The Taoiseach also spoke on the issue of mortgage arrears and the Government's seriousness in addressing it.

In the last few weeks, in particular, I have been inundated with representations from people from across the spectrum of Irish society, including older people and couples in many cases, who have worked all their lives but where one person in the household or sometimes both have lost their jobs and who are attempting to engage with the banks as the Taoiseach has encouraged them to do. The banks are telling them that they should sell their homes. These people are engaging with the banks but the banks are telling them they will not give them a write-down of their debt and will only consider it if the people concerned will consider selling their family home. That is what is being reported to me and in phone calls to my office by constituents. Despite all the talk that there will be a resolution, that the banks will be fair, that distressed mortgage holders will be treated well and all the energy the Government claims it is deploying on this issue, ultimately the banks are simply saying: "We want our pound of flesh and if you have to lose your family home, so be it". That is what is happening. Will the Taoiseach address this?

Finally, the Taoiseach mentioned JobBridge and the committee on JobBridge. Concerns were expressed that JobBridge might be used to displace existing jobs, and evidence is beginning to emerge that this is happening. The Ballyogan depot is run by Dún Laoghaire Rathdown County Council. In the last few weeks workers who were employed by contractors employed by the Oxigen company have been let go. They had to train people in the JobBridge scheme to take over their jobs. We, the public, are now paying wages for a private company where previously it had to employ people directly. This is a shocking abuse of what is supposed to be a scheme to get people back to work. It appears it is being used by companies as a means to get free labour, paid for by the public, and to displace existing jobs. The committee should examine this case and seriously assess whether the JobBridge scheme is being abused on a widespread basis in such a disgraceful way. If it is, as the evidence presented to me suggests, it is a very serious issue for the committee dealing with that scheme.

5:15 pm

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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There are conditions governing acceptance under the JobBridge scheme. It has been a very successful scheme. Over 55% of the almost 10,000 people who have participated in JobBridge have been taken on permanently. The employers I have met have been absolutely delighted with the quality of the talent pool available in respect of young workers employed by the various companies concerned. I do not have the details about Oxigen, the company mentioned by the Deputy. I suggest that he submit the matter as a topical issue. If he feels good about it, the Ceann Comhairle might consider it benignly given that the Deputy comes from the same constituency as himself.

Clearly, the trades unions have made their decision. I have always said they should have the space and opportunity to make their considered decision. Equally, the Government will consider the outcome and nature of the ballot, as well as the fact that the Government is still required to make savings of €300 million this year. The opportunities here are limited but the Government will obviously reflect carefully on how to achieve that level of savings for 2013 and savings of €1 billion by the end of 2015.

Credit availability is an issue on which I receive different reports from around the country. Some Deputies tell me there has been a change on the part of the banks recently and that the level of rejection or non-availability of access to credit is not as strong as it was. I welcome that. Bank of Ireland has published the fact that it made €1 billion available in the first quarter of 2013. The Department of Finance met with the pillar banks to discuss the results for the fourth quarter of 2012 and lending plans for 2013. The pillar banks achieved their target of providing €3.5 billion in 2012 and are on target to achieve the target of €4 billion set for each of them for 2013.

However, there are other things to consider. There is the bank finance scheme, with the 75% State guarantee under the credit guarantee scheme. That was established to provide up to €150 million in additional lending to SMEs over three years. That scheme went live on 24 October last and at the close of business on 5 April last there were 25 live credit guarantee scheme facilities, resulting in over €3.1 million having been approved through the scheme. It is expected that this will lead to almost 200 jobs being created and 25 jobs being maintained. It is a small issue but an important one, in the sense that this is how one will build one's local economy. The SME Equity Fund and the SME Turnaround Fund have established offices in Dublin and they are now active in the market sourcing transactions. The European Investment Bank, EIB, sub-group met on 22 March last and the EIB management committee is due to visit Ireland at the end of April with a view to assessing opportunities for serious investment in certain infrastructure. Enterprise Ireland and the National Pensions Reserve Fund have made up to €250 million available for investment in international venture capital funds that establish a presence in Ireland with a view to investing in Irish start-up and scaling companies.

The Government is looking at how to stimulate an element of activity in the construction sector here, which would spread throughout the economy when it is started. Clearly, what happened in the crash when 160,000 construction workers were made unemployed is central to what we must do here. It involves a range of measures, such as the development capital scheme, the Innovation Fund Ireland, the microenterprise loan fund or the partial loan credit guarantee scheme, where access to credit is made available for creative small enterprises. We should not be afraid to get back into manufacturing. This is an area where I see a new interest.

However, we are following through on the 17 specific actions mentioned at the special Cabinet meeting on jobs. That is where our focus will be in the forthcoming period, because that is the challenge for everybody here.

Written Answers follow Adjournment.