Seanad debates

Thursday, 24 November 2005

Estimates for Public Services 2006: Statements (Resumed).

 

12:00 pm

Photo of Brendan KenneallyBrendan Kenneally (Fianna Fail)

One wonders what state we would be in now if the Labour Party had anything to do with our economy. With regard to the number of gardaí, at the end of 2006 they will number 14,000 between those who are fully attested and those in training.

It surprises me a little that the Estimates do not get more attention from the media and elsewhere. There are three arms to the financial debate each year — the Estimates, which we are debating today, the budget and the subsequent Finance Bill. Most of the spending is dealt with in the Estimates. The budget is probably the sexy aspect to the debate, as it were, on which everybody seems to focus. However, this debate is important and should get more attention.

We were able to spend a great deal of money and develop programmes in so many areas because of prudent management of our finances over the years. In the mid-1970s, the debt to GDP ratio was 130%. In 1997, it was down to 65% and at the end of 2006 it will be down to 29%. That is a remarkable performance and it was achieved despite the fact that large amounts were paid out on the various tribunals, deafness claims, awards to haemophiliacs, claims by those abused as children in our State institutions and the nursing home charges problem.

Despite all those payouts, however, we remain in a strong economic position and that is welcome because there is a time-bomb on the horizon regarding future pensions for our elderly population. That is something the Minister's predecessor, former Deputy Charlie McCreevy, recognised some years ago and took steps to try to correct with a view to providing funding for the future. We know people are living longer and there will be more pressure in the future to fund this area. That is why we must keep a rein on expenditure and ensure the economy continues to grow. I believe we must look after the elderly members of our population. The Government has done that successfully in the past few years but I would welcome meaningful increases, as happened in a few previous budgets, in the level of payment to the elderly.

I would also welcome an increase in the fuel allowance, although there are two sides to that argument. The fuel allowance was introduced initially to cover the cost of a bag of coal but Members will be aware it does not cover that cost. I did not realise until I spoke to the Minister that there are now 240,000 recipients of the fuel allowance. It was initially intended to be a fairly focused scheme but it has continued to develop into other areas and to increase it by even €1 would be horrendously expensive. Is it better to give people on social welfare money through the fuel allowance or by direct payment and allow them decide how to spend it? I do not know but would welcome a meaningful increase in the allowances our elderly are getting.

The 2006 budget for the Department of Social and Family Affairs is roughly double what it was in 1999, despite the huge decrease in the number of people drawing unemployment assistance or benefit. If we can take that many people out of the social welfare net and still be in a position to double what we were paying them in 1999, it is obvious we are looking after those within the social welfare area. A total of 992,000 currently avail of weekly social welfare payments.

Turning to my own area of responsibility in the Seanad, namely, communications, marine and natural resources, a total of €547 million will be provided in 2006 in respect of this Department, which represents an 8% increase over 2005. The allocation provides for a wide range of services including marine safety, the operations of the Irish Coast Guard, sea ports development, coastal protection, marine research, seafood and aquaculture development, energy conservation, inland fisheries, communications and broadcasting. The Department has a wide remit and I am delighted that part of the allocation is €21 million for fishery harbour infrastructure. I expect much of it will be spent in my constituency of Dunmore East, where the final planing permission is due to come today from An Bord Pleanála for a major development in that harbour. I hope work will get under way in 2006 and look forward to having it completed the following year.

The roll-out of broadband is giving me some cause for concern. Many OECD reports have shown Ireland to be lagging behind in that area, despite the fact that the Government has been putting money into it and will provide another €36 million this year. The commitment to having broadband rolled out to every town with a population of over 1,500 by the year 2997 stands but problems remain. There is a geographical divide and demand is worryingly stagnant. The geographical divide exists because the last 10% of the lines are not being improved by Eircom, which makes it impossible for those people to take up broadband.

There are concerns about the demand and perhaps we might have to prime that to some extent. Even in those areas where platform and carrier competition exists, and as a result prices have become relatively competitive, the take-up is still depressingly slow. I do not know the reason for that but we must examine the question of driving demand and monitor the reason people are not taking it up. Prices in many areas have come down and it has become much more competitive. Speeds have increased as well. That defines the service and helps to influence demand. Pending local loop unbundling, alternative DSL providers are locked out. Speed competition, therefore, depends on wireless and cable and putting it up to Eircom. That is a far from ideal scenario.

Turning to the seafood sector, a quality seafood manager is proposed in the Sea Fisheries (Maritime Jurisdiction) Bill 2005, which is being debated in the other House today. I do not intend to go into the Bill because this is not the day for discussion of it. However, it is something about which I have grave reservations and I am sure we will get an opportunity to ventilate our views in the next few weeks.

A total of €3 million is being provided in 2006 to deal with coastal erosion. I am aware there is a long-term programme in place to deal with it but it is not going far enough to deal with the existing problems. We could spend €3 million in my constituency of Waterford and it would not tackle all the problems. This area has not been given sufficient priority and it is a problem that is affecting many people in coastal areas. I would like to see it being examined further.

There is nothing provided in the Estimates, nor did I expect it, for a new university for the south east located in Waterford, on which there is total agreement in the south-east region and for which an application is about to be lodged with the Minister for Education and Science. That is an issue we will come back to on a regular basis. The south east is suffering because of the lack of that type of facility. It is a cause of concern in terms of future development of the area. Many people believe it is an affluent part of the country but we are suffering because of the lack of such a facility. I will return to that issue again.

I would have liked to raise many other issues but unfortunately my time is limited. I congratulate the Minister on the way he is managing our finances.

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