Dáil debates

Thursday, 14 July 2016

12:00 pm

Photo of Michael MoynihanMichael Moynihan (Cork North West, Fianna Fail)
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Children with physical and sensory disabilities need all the supports that are humanly possible to be made available to them so they can have as independent a life as possible. Volumes of research show that children who receive intervention as early as possible benefit enormously from it.

The Irish Wheelchair Association administers a personal assistant scheme using a person-centred approach. It has pioneered the way the service is meant to be delivered. It connects with each individual and has a direct input into his or her needs and assessments.

There is no need for me to outline the considerable benefits that have accrued for children with intellectual, sensory or physical disabilities because of their having personal assistants. Unfortunately, however, there are many children who are not receiving this vital support. I am sure the Tánaiste and every other Deputy has had to fight for services, such as personal assistants, for children with special needs in preschools, national schools and secondary schools.

The maximum number of hours allowed through the Irish Wheelchair Association is four to six hours. This is absolutely inadequate. The programme for Government refers at length to commitments to improving the lives of people with disabilities, and it goes through all that should be done to help them. The HSE’s plan for 2016 alone contains a target of 1.3 million hours. This compares with 1.4 million actual hours in 2015. Therefore, before we start at all, there has been a reduction in the service by 100,000 personal assistant hours, despite the constant growth in the number of children who need personal assistants. It is grossly hypocritical to include a commitment in the programme for Government to having better supports and access for those with disabilities, particularly children, if the number of hours referred to in the 2016 plan is lower than the number granted in 2015. The Government has given various commitments in this regard. I challenge it to consider very seriously the provision of personal assistants, particularly through the Irish Wheelchair Association. I have encountered many cases throughout my constituency of families seeking supports, as has every other Deputy.

It is hypocritical to claim the Government is seeking to improve the lives of people with disabilities through better access to supports and increased independence when the number of personal assistance hours has been cut this year. Will the Tánaiste confirm that these cuts will be reversed and the allocation of personal assistance hours will be dramatically increased in 2017?

Children starting preschool education and primary school are being allocated four or six hours of personal assistance. If this figure were increased to eight or nine hours, it would give them a major boost as they face the challenges of the future. I ask the Tánaiste to acknowledge that services have been cut this year, confirm that they will be reversed and recognise that the Irish Wheelchair Association must be shown greater flexibility in providing additional hours to children who require them at preschool and primary level.

12:05 pm

Photo of Frances FitzgeraldFrances Fitzgerald (Dublin Mid West, Fine Gael)
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The Deputy raises a very important topic. I agree with him that early intervention services are critical, particularly for children with special needs who require either intellectual or physical supports. The programme for Government commits to supporting children in these circumstances. For the first time, children with a disability who are attending preschool education will receive supports under the early childhood care and education, ECCE, programme. This major new initiative to ensure children have access to services will mean, for example, that special needs assistants will be made available in preschool settings. The Government recently agreed to provide an additional 860 special needs assistants. This will be of considerable help to the children the Deputy describes both in preschool and primary education.

An additional €500 million has been allocated to the health service, including €31 million secured by the Minister of State, Deputy Finian McGrath, to support and improve disability services. This funding will be used to deal precisely with the group of children the Deputy describes, as well as adults who are in need of support, particularly those making the transition from school to day care centres. This money will ensure services are available to this group. The Government is, therefore, committed to early intervention and providing supports for the children the Deputy describes. Under the previous Government, the then Minister for Health, Deputy Leo Varadkar, also announced extra funding for speech and occupational therapy.

The Deputy indicated that the Irish Wheelchair Association has some concerns regarding personal assistants. I will convey the points he raises to the Minister of State, Deputy Finian McGrath, and ask him to respond directly to the Deputy. The general context is one of increased funding for health services, with a special focus on extra funding for disability services, and increases in early years supports for children with special needs, whether intellectual or physical. The Government is committed to this in the programme for Government. I will ask the Minister to respond to the Deputy directly on the personal assistance scheme. I expect that supports will be made available to children who need this kind of support given the commitments made in the programme for Government and the focus and priority the Government has given to increasing funding for the health sector.

As I stated earlier in the week, demand for health services is increasing and attendances are higher. Thankfully, the needs of many of the children in question are being identified at earlier in life. We must provide supports to children with special needs at an earlier time in life. For this reason, I welcome what the Government is doing in ensuring that children with disabilities have access to supports in preschool and primary education.

Photo of Michael MoynihanMichael Moynihan (Cork North West, Fianna Fail)
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The parents of children with physical or intellectual disabilities must continuously fight the system for services for their children. The Tánaiste stated that more special needs assistants will be provided.

I am sorry to say that is not what is happening on the ground. The Tánaiste referred to speech and language and occupational therapy. A whole series of questions could be brought in these areas. There could be hours of debate on these matters and every Deputy could bring their own experience to bear. The waiting list for occupational therapy, speech therapy and all of that produces extraordinarily difficulties. There are huge waiting lists. Parents come to me with stories of waiting lists of a year or a year and a half but the services are needed now.

The Tánaiste made a point about special needs assistants. Will she tease out the point? We have all signed up to UN conventions and so on and the theory is correct, but the reality is that there is extraordinary concern among people and there is a lack of supports for children with either physical or intellectual disabilities. This applies whether they are trying to access the services in primary school, preschool or in second-level education.

12:10 pm

Photo of Frances FitzgeraldFrances Fitzgerald (Dublin Mid West, Fine Gael)
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Parents of children with special needs, whether intellectual or physical, should not have to fight the system in the way Deputy Moynihan describes. Our intention is to improve the services. Let me give an example of what is happening. Under the Health Service Executive 2016 national service plan, the priority is to protect the level of services provided in 2015 and to provide 1.3 million hours of personal assistance services as well as 2.6 million hours of home support to over 2,000 adults with a disability. These are precise figures on the improvement in personal assistance hours.

Historically, parents of children with a disability in this country have had to fight too hard for services. We know that. In an improving economic situation we are now in a position where more services are being provided. That is the reality. There are 850 extra SNAs. Parents who need special needs assistants in schools for their children will see the benefit of this in the coming school term. Extra money has been allocated with over €1 billion in our budget for special needs assistants.

Photo of Carol NolanCarol Nolan (Offaly, Sinn Fein)
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I wish to highlight the absolute failure of this Government to manage the care of citizens with intellectual disabilities. They are vulnerable citizens. It is totally inappropriate and unjustifiable that these citizens have been left in this manner. They are citizens who have rights, like all of us.

The Tánaiste will remember the scandal last year surrounding the investigation into Áras Attracta. Unfortunately, that scandal was quickly followed by too many more scandals. For example, a HIQA report into St. Patrick's Centre campus in Kilkenny found that it was understaffed, poorly maintained, unclean and lacked an adequate fire safety plan. That is a basic necessity in any care centre, but it was not in place. In recent years a number of HIQA reports have highlighted major non-compliance in residential centres for adults and children with intellectual disabilities. The centres have failed on multiple grounds in respect of non-compliance of regulations. Last April, the HIQA chief executive Phelim Quinn told a conference hosted by Inclusion Ireland that the standard of care in some residential centres was disturbing and appalling. Last summer HIQA gave notice to 20 disability services that their registrations would be refused or cancelled if they did not make necessary improvements within 28 days.

The HSE revealed in June last year that more than 20 staff were being investigated for abusing residents with severe intellectual disabilities throughout the State - and this is a small state. This year the problem has continued. For example, the centre at St. Mary's in Drumcar run by St. John of God's was closed because inspectors from HIQA found significant and ongoing levels of non-compliance and were not assured that the services being provided were safe. In recent weeks we have seen the additional scandal of St. John of God's withdrawing funding from St. Augustine's in Dublin while 14 of its senior managers received secret top-ups to the tune of €2 million. That is disgraceful and cannot continue.

There is a crisis in the provision of care for citizens with intellectual disabilities. While many care homes provide excellent services, many others do not and they need to be dealt with. Does the Tánaiste accept that the failure of Government to fully register residential services, provide for proper and regular inspections and monitor these care homes is a disgrace and requires urgent attention?

Will the Government agree to establish as a matter of urgency a fully independent root and branch inquiry into all care facilities for citizens with intellectual disabilities?

12:15 pm

Photo of Frances FitzgeraldFrances Fitzgerald (Dublin Mid West, Fine Gael)
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The Government appointed a Minister of State with particular responsibility for people with disabilities, which was the right thing to do. We are all aware of the poor standards that historically have prevailed in many residential institutions. I welcome the work HIQA is doing which the Government wants to support. Many of these facilities remained hidden and there was bad management behind closed doors. We are now seeing independence being brought to bear in examining the standards in residential homes through the work of HIQA. I welcome its work in ensuring various residential services reach the proper standards. I agree with the Deputy that it is extremely disappointing that we continue to hear about poor standards in residential services; it is not good enough. That is why we support HIQA's work and have dedicated €300 million to ensuring residential disability services reach the proper standards and will be fully compliant. The Minister of State with responsibility for people with disabilities is absolutely committed to ensuring residential facilities reach the appropriate standards. He is dedicated to doing this, while the Government is dedicated to providing the funding required both for HIQA and the various service providers to ensure it will happen. Those running services have a responsibility to ensure their staff and facilities reach HIQA standards. If not, they will be exposed and action taken. Recently, the HSE took over responsibility for a number of facilities.

On St. Augustine's, the Minister of State met the families. The Minister, Deputy Simon Harris, was also involved. As the Deputy knows, a decision has been made in that regard.

The money use to make top-up payments should be returned. The Ministers for Public Expenditure and Reform and Health are actively involved in analysing the matter, including the pay guidelines which should have been met. They will ensure action is taken in order that, if money is due to the State, it will be recouped.

Photo of Carol NolanCarol Nolan (Offaly, Sinn Fein)
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We are talking about the regulation and registration of a care centre. These are very basic requirements. The plan was to have 1,000 centres registered by HIQA by October this year, but that will not happen. I would not sing HIQA's praises by any means, but the Government needs to take responsibility for this matter. Registration is a basic requirement, but it has not happened. The health (amendment) Bill will be brought to the Government, but we are just kicking the can down the road in terms of registration in allowing a further two years to complete the process. This is a very small country and we are only talking about 1,000 of these centres; it should not, therefore, be a major task. People cannot afford to wait for another two years for these issues to be addressed. It is further evidence that the Government is failing to properly manage the care of vulnerable citizens with an intellectual disability. I repeat my question. Will the Government establish as a matter of urgency a fully independent root and branch inquiry into all care facilities for citizens with intellectual disabilities?

Photo of Frances FitzgeraldFrances Fitzgerald (Dublin Mid West, Fine Gael)
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It is important to ensure the various residential institutions reach the standards laid out. They have not been granted an extension of time by HIQA to reach them. What is most important is that they be independently inspected, that the work being done is independently examined by HIQA. That is where our focus should be to ensure the services being provided and the care being given are of the very best standard. The staff who are working in the services need to be able to do their job in appropriate facilities and provide the care we would expect to be provided for adults - it is primarily adults who are involved - in need of residential care.

That is the Government's intention. That is the direction those services are moving in. I agree with the Deputy it is critical that they move as quickly as possible. As I have said, we know the standards have traditionally not been good enough. Now that this is out in the open, HIQA is inspecting and the money is available to ensure there is compliance. The services have been given the necessary amount of time, but not an undue amount of time, to reach the outlined standards they should meet.

12:20 pm

Photo of Joan CollinsJoan Collins (Dublin South Central, Independent)
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The Minister, Deputy Coveney, met representatives of the bin companies in Athlone last month following the public outcry and concern about huge increases in waste charges as a result of the introduction of the pay-by-weight system. There was a collective sigh of relief nationwide when the Minister said after the meeting in Athlone that waste charges would be frozen for 12 months, that people's waste charges would not increase and that he would take action if waste companies did not comply. One of the companies in question, Greyhound, is now giving two fingers to the Minister by requiring people to opt out of the pay-by-weight system. In other words, if people do not contact the company, they automatically go under the pay-by-weight system, which means an increase in their charges. Greyhound is also insisting that its customers have to take out new 12-month contracts from 1 August and have to pay by that date.

I will give an example. I was recently contacted by an old age pensioner from my constituency who receives €198.60 per week. In December of last year, she renewed her yearly contract with Greyhound for the 12-month period from 1 January to 31 December 2016. The annual charge was €59.99, with additional pay-per-lift payments to be made. This woman received a letter from Greyhound asking her to contact it and informing her that the mandatory pay-by-weight system was gone. When she contacted the company, she was told she would have to pay €140 per year, with this payment to be received by 1 August next. This is going to be the case even though her current contract has not yet expired. She will have to make a full payment by 1 August, or alternatively pay in two instalments of €70 each. Another person in the same situation contacted me by e-mail and asked me to call for Government intervention regarding the so-called price freeze that has been brought in. She said that after she phoned Greyhound to ensure her service charge, which was prepaid until December 2016, and her charge per lift would not change, she was contacted to say that there would be changes in those charges. Like thousands of customers of Greyhound, I would like to know in light of what I have said whether action is being taken. What action, if any, is the Minister proposing to take to address the situation at Greyhound?

Photo of Frances FitzgeraldFrances Fitzgerald (Dublin Mid West, Fine Gael)
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The Government believes the significant progress that has been made with recycling rates and diversion from landfill has been very positive for our environment and our communities. As the Deputy knows, the Minister has actively engaged with representatives of the waste industry with a view to agreeing a way forward that results in customers paying no more over the next 12 months than they are currently paying for waste. The approach that was agreed with industry involved a price freeze to the end of June 2017. The Minister has every intention of monitoring very closely the agreement that has been reached. He has said he will take action if there are breaches in this regard. He has been in contact with the company mentioned by Deputy Collins and he will be in further contact with it. He has made it clear that he will introduce legislation if necessary. If the agreement he reached with the waste companies is being broken - he will continue to monitor this very carefully - he will take action. I want to say clearly that situations like those described by Deputy Collins will be dealt with by the Minister as long as they are out of line with the agreement. He will take action with the particular company. He has already engaged with it on some of the issues raised by the Deputy. He has publicly expressed his dissatisfaction with a particular company regarding the manner in which it required customers to opt out of the pay-by-weight system, as opposed to being offered the opportunity to opt in.

The Deputy can be assured that the Minister is monitoring the situation carefully. He is engaged and will continue to engage on the matter. If the agreement is being broken and action is necessary, he will take action.

12:25 pm

Photo of Joan CollinsJoan Collins (Dublin South Central, Independent)
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I thank the Tánaiste for her reply, but the point is that it is being broken. It has been broken for the last two weeks. The company has written to every customer telling them that they must contact the company about their renewed contract. The Minister should not be monitoring it for the next two weeks. This is 14 July and the company is saying that people must pay in advance by 1 August. What will the Minister do now to take this company to task and to maintain the price freeze which he said was in place? What choice does Eva have? She has been told that she must pay €140 by 1 August if she wishes to maintain her service with Greyhound. I ask the Minister to be a little more urgent on this. We are familiar with Greyhound. The company has a reputation of contempt for its workers, such as the lock-out of 2014. Now it appears to have the same contempt for its customers and for the Minister. I urge the Minister to come to the Dáil quickly to state that he will introduce the legislation necessary to deal with this issue.

Photo of Frances FitzgeraldFrances Fitzgerald (Dublin Mid West, Fine Gael)
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The Minister is extremely alert to this issue. When he was discussing this in the Dáil on previous occasions he said that he had engaged with the industry and had come to an agreement with it. He said he would monitor it and act on any breaches of the agreement. He also said that if legislation was necessary, he would introduce it. The Deputy can raise the points she raised this morning when the Minister is taking questions or on other occasions, but I assure her that he is alert to this situation and is engaging individually with companies. If there is a breach, he will respond and deal with it. I will bring what the Deputy said today to his attention.

Photo of Joan CollinsJoan Collins (Dublin South Central, Independent)
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There is a breach and we need action.

Photo of Stephen DonnellyStephen Donnelly (Wicklow, Social Democrats)
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Last week I outlined how a US vulture fund structured its Irish subsidiary, Mars Capital, to avoid paying taxes in Ireland on its Irish profits. I believe these vulture funds are about to pull off the largest avoidance of tax on Irish profits in the history of the State. The scale is likely to be in the tens of billions of euro in missed taxes. These are taxes being avoided by Irish companies on Irish domestic profits earned off the backs of distressed Irish families. Irish charities are being used to play a key part in this tax avoidance. Mars Capital is owned by a registered charity, the Matheson Foundation. The stated mission of the charity is to help Irish children to fulfil their potential. It contributes to causes such as the Irish Society for the Prevention of Cruelty to Children, ISPCC, Barnardos and Temple Street Children's University Hospital. The charity does not mention its ownership of Mars Capital. One reporter I spoke to believes that the charity might own more than 200 companies. At a time when public faith in the charity sector has been rocked yet again, a children's charity is being used to help a vulture fund avoid paying taxes to the Irish State on its Irish profits.

It is very effective. In spite of annual revenues in year one of over €14 million Mars Capital paid total corporation tax to the Irish State of €250. Companies such as Mars Capital are known as section 110 companies. Section 110 was introduced in 1997 to allow the International Financial Services Centre, IFSC, win global securitisation deals. These involve global companies structuring global assets in Ireland. Their profits were not earned here, so section 110 helps these companies avoid paying taxes here on those profits. The vulture funds are now using section 110 companies to avoid paying taxes in Ireland on Irish profits. Section 110 companies were not created to re-route Irish domestic profits to offshore locations. However, my understanding is that almost all of the vulture funds whose profits are generated in Ireland have section 110 status.

How big is the scale of the tax avoidance by these vulture funds? Irish companies typically pay approximately 30% tax on their profits, between corporation tax and dividends tax. Vulture funds typically target minimum returns on their Irish investments of 15% to 20% per year over seven to ten years. That means a €100 million investment by a vulture fund should generate €100 million in taxes for the Irish State.

To be clear, the level of taxes being missed by the Irish State is likely to be well over half of the total value of all of the distressed loan books sold by NAMA, IBRC and private banks.

Will the Government direct Revenue to cancel section 110 status for all vulture funds in Ireland? Will it provide Revenue with the extra resources to execute this quickly and to reclaim back taxes? Will it direct the Charities Regulator to pull charity status where that status is being used to help avoid Irish tax on Irish profits? Will it direct NAMA to not sell assets to vulture funds if these funds are structured to avoid Irish taxes on Irish profits?

12:30 pm

Photo of Frances FitzgeraldFrances Fitzgerald (Dublin Mid West, Fine Gael)
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I thank the Deputy. Section 110 of the Taxes Consolidation Act 1997 sets out the taxation regime for securitisation and other structured finance transactions. Under the Taxes Consolidation Act, a qualifying section 110 company is chargeable to tax at 25% but has its profits computed by reference to the rules available to trading companies. As a result, the companies are generally structured in such a way that they are effectively tax-neutral. A company must notify the Office of the Revenue Commissioners in advance of its intention to fall within the scope of section 110. The companies are required to pay their taxes and file their tax returns in the same way as all other companies and are subject to the same monitoring by the Revenue Commissioners, an important point to note.

I understand that officials from the Department of Finance and the Revenue Commissioners are currently examining recent media coverage concerning the use of certain physical vehicles for property investments - indeed, Deputy Donnelly has raised this issue before, as has Deputy Pearse Doherty. Should these investigations uncover tax avoidance schemes or abuses which erode the tax base and cause reputational issues for the State, then appropriate action will be taken and any necessary legislative tax changes that may be required will be put forward for the consideration of the Minister for Finance. Therefore, I can confirm that the Department of Finance and the Revenue Commissioners are examining this issue with a view to taking action.

I would also respond to the Deputy's point in regard to charitable status. Clearly, this issue needs examination by the Charities Regulator. I have been in contact with the Charities Regulator and asked him to examine the particular issues which the Deputy has raised about the granting of charitable status and how it is being used by certain companies at present.

Photo of Stephen DonnellyStephen Donnelly (Wicklow, Social Democrats)
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I thank the Tánaiste for her reply. I am very glad to see the Government is taking this seriously. We could be looking at missed taxes to the Irish State to the tune of €1 billion to €2 billion a year, or even more. If it is €1 billion a year, that equates to some €20 million a week in missed taxes. The section 110 structures were set up for a legitimate reason in 1997 under the Taxes Consolidation Act. They are now being used by nearly all of the vulture funds to take profits generated in Ireland and, very frustratingly, to take profits generated in Ireland by ordinary, decent families trying to pay their way out of negative equity and distressed mortgages. Section 110 was never intended to be used to pull Irish-generated profits out of the country. This is happening on a scale that is potentially worth tens of billions of euro.

I acknowledge what the Tánaiste said about the Revenue Commissioners. Will she come back to the House on this issue as a matter of urgency, ideally before the recess? What we should be doing in the finance Bill which is coming up with the budget, or even before that, is shutting this down.

Photo of Frances FitzgeraldFrances Fitzgerald (Dublin Mid West, Fine Gael)
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I repeat that officials from the Department of Finance and the Revenue Commissioners are currently examining this issue, in particular the use of certain vehicles for property investments. This is clearly an issue of concern, particularly the point the Deputy raised yesterday in regard to the use of charitable status, which I believe needs investigation. The Minister for Finance will take note of the outcome of the investigations that Revenue and the Department of Finance are undertaking at present on this issue.

There is no doubt that, if it needs to be addressed, he will address it in a comprehensive way in the budget. It is important that we first have a full analysis to have the entire picture put on the table and see what the results of the investigations are to determine whether changes are necessary.

12:35 pm

Photo of Seán Ó FearghaílSeán Ó Fearghaíl (Kildare South, Ceann Comhairle)
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That concludes Leaders' Questions. In recent times it has been running badly as regards time; therefore, from next week I will seek to impose strictly the time deadlines set.