Michael McCarthy (Labour)

I thank the Minister of State for Finance, Deputy Tom Parlon, for remaining here until this unearthly hour. The issue I wish to raise is one with wide-ranging consequences. It relates to CoAction West Cork, an organisation which for several years has provided sterling service to people with special needs and adults with learning dificulties, and their families, in the West Cork region.

At issue is the core funding deficit which now exists in CoAction. I stress that this is not an issue of general funding. The core funding deficit in CoAction has arisen because it has never received permanent funding for four services that it provides. These services affect 21 children and adults and have been operating for between five and seven years. For the past four years, CoAction has had to use over €1 million raised voluntarily to subsidise the day-to-day running costs of services to children and adults with learning disabilities. The Minister for Health and Children, Deputy Martin, acknowledged, in reply to a question in the Dáil on 27 February last, that voluntary fundraising has been necessary to meet needs identified in existing services which have suffered through Government under-funding of their core budgets.

This year the CoAction deficit will be much larger than in recent years, due to increased costs to match national pay scales. For reasons beyond CoAction's control, in previous years a number of positions remained unfilled. In its 1997 document Enhancing the Partnership, the Department of Health and Children undertook to deal with core funding deficits in agencies like CoAction. It did this for Cork city based agencies such as the Cope Foundation and the Brothers of Charity in 1998, and it is fair to assume that the large service providers in this area mopped up the initial funding.

After a three year delay an independent consultant conducted an evaluation in September 2001. His report highlighted the ongoing core funding deficit for the services provided by CoAction and confirmed the necessity of continuing these services and the need to maintain existing staffing levels, although he recommended additional staffing. He also informed the Department of Health and Children that CoAction expected a deficit of over €500,000 in 2002, yet the Department provided only an additional €63,500 to add to the organisation's budget.

The services provided by CoAction, in particular those for which it receives no funding, have been developed and maintained only by the extraordinary fundraising efforts of parents and voluntary members. I am sure that many voluntary organisations can pay the same tribute to their members but, given the financial constraints on this organisation, it is particularly inspiring that the parents of these children, and others closely associated with it, have felt obliged to engage in this type of fundraising activity. The financial crisis faced by CoAction is demoralising for its members and could have a negative effect on fundraising efforts. In 2003, it is not acceptable that almost 20% of the funds required by CoAction has to be raised voluntarily.