Seanad debates

Thursday, 25 November 2004

Council of Europe Development Bank Bill 2004: Second Stage (Resumed).

 

Question again proposed: "That the Bill be now read a Second Time."

12:00 pm

Photo of Paschal MooneyPaschal Mooney (Fianna Fail)
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I will try to pick up the thread of my thoughts. In the context of the formation of the Council of Europe, the Council of Europe Development Bank, established in the mid-1950s, has been doing extraordinarily positive work. I think I am correct in suggesting that this is the first legislation to come through this House that has a specific reference to the Council of Europe and to a Council of Europe institution. If it does nothing else at least it will raise a certain awareness, a point to which other speakers have alluded.

Countries like Sweden, Italy and Germany, which one would not normally associate with social and economic disadvantage, have benefited to some degree from funding through the Council of Europe Development Bank. Will Ireland now be in a position to benefit or did we always have this right if we wished to put forward an application?

I was particularly struck by the reference to Germany. The German experience relates to the key role of vocational training in the fight against unemployment. The programme has involved over 7,000 small and medium sized enterprises and led to the creation of over 10,000 apprenticeships. I am no expert in this area but I am aware that concern is regularly expressed about what appears to be a diminution in the number of apprentices and apprenticeship courses here. For example, I understand that in Sligo IT a number of apprenticeship courses have been abandoned. Anecdotal evidence would suggest that this area has been somewhat neglected here in recent times. Anybody who has needed the services of a carpenter, plumber, painter or decorator in recent years will know how difficult it is to find one.

Photo of Mary O'RourkeMary O'Rourke (Fianna Fail)
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One cannot get them.

Photo of Paschal MooneyPaschal Mooney (Fianna Fail)
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One cannot find a tradesman to do a small or medium-sized job, they are only available to build 55 or 110 houses in an estate. Is there an opportunity for the Government to follow the German example in this respect? It appears that there is a gap in this area which may be to do with funding. I cannot understand why an apprenticeship course would have been abandoned in an institute of technology. I only have anecdotal evidence in this regard and I stand to be corrected on the details.

In the context of the Bill I welcome the emphasis the bank has placed in recent years in the stability pact for south-east Europe. Will the Minister give serious consideration to raising the issue of human rights violations in Kosovo? We could perhaps support civic society in its attempts to inform and educate Albanian and Serbian Kosovans, particularly the Serbian population of Serbia, about human rights violations because it is part of the mandate. For example, the mandate refers to efforts to foster peace, democracy, respect for human rights and economic prosperity in order to achieve stability in the whole region, which is still potentially explosive. There is no question that until and unless a final settlement is reached in the Kosovo region and the Serbians are brought into the European fold to comply with European norms, especially in respect of tracking down and handing over of the war criminals, Ratko Mladic and Radovan Karadzic, they will not be part of the European family of nations in the way they wish to be.

In Croatia, the bank has provided social housing for returning emigrants, where the problem remains. It is an area in which the country has benefited through its involvement in the Council of Europe Development Bank. The former Minister for Foreign Affairs, Deputy Cowen, played an impressive role during Ireland's EU Presidency and visited the troubled area, in which 213 Irish troops are operating under the UNMOVIC mandate.

A group from Kosovo visited with the sub-committee on human rights and its members outlined their views. As the Minister of State is in the House, I ask him to address the unresolved issues regarding the return of the bodies of civilians from Kosovo who were murdered by Serbian forces in 1999 following the NATO bombings. Some 700 bodies have still not been returned by the Serbian authorities, which are dragging their feet by insisting they do not have the medical facilities to provide proper post-mortems and are sending the bodies on a drip-drip basis. Some 31 bodies were returned one year and 25 another since 2000. Can anyone imagine the trauma the families of those unfortunate victims are feeling, as a result of what I believe to be the definite violation of the human rights and dignity of Kosovo Albanians? Reference is made in the mandate of the bank, of which Ireland will now be part, to respect for human rights.

In the week in which one of Ireland's best-loved and oldest institutions in this city, Bewley's, is being shut down in the interests of commercial greed, the question of a national trust for Ireland must be addressed. As cultural heritage forms part of the mandate of the Council of Europe Development Bank Bill, surely the Government must be able to do something, even in the face of commercial reality where such an operation is privately owned. In any other country, the Bewley's buildings on Westmoreland Street and Grafton Street would be immediately protected as listed buildings and a national trust, such as exists in the UK, would be financed by the Government to take over the buildings.

However, next week these cafés will be shut down and those wonderful stained glass windows and the whole ethos of what Bewley's has represented for Irish people as well as Dubliners will be lost forever. If the Council of Europe Development Bank Bill is supposed to be about anything in the context of the protection of cultural heritage, this is a perfect example, of which there are many more.

I am grateful that the Minister of State has come to the House to take this Bill in his capacity as Minister of State with responsibility for European affairs, a very wide remit. This Bill will prove to be a very positive development in Ireland's continuing engagement with European institutions. If it does nothing but raise awareness of the important work of the Council of Europe in its institutions and parliamentary assembly, this will be a good day's work.

2:00 pm

Photo of Noel TreacyNoel Treacy (Galway East, Fianna Fail)
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I sincerely thank Senators for their wide-ranging and interesting comments on this Bill. Members of Seanad Éireann have shown consistent and genuine concern about the affairs of the less well-off countries of the world, which is fully acknowledged by me on behalf of the Government. We have benefited from the valuable contribution made to the economic and social development of Ireland by international development institutions. It is now time for us to acknowledge that past support and, as we become wealthier, show our support for other states in their development and grappling with their problems.

In joining the bank at this time, we are acknowledging our commitment, not only to new members of the European Union, but also to the other countries of eastern Europe. I consider that the Irish experience has much to offer in eastern Europe and elsewhere. I pay tribute to all the speakers. Senator John Paul Phelan welcomed the Bill and supported the Government on behalf of Fine Gael and his very positive contribution is deeply appreciated. Senator Mansergh and others raised the point that we are a bit late in joining the bank. However, that slowness was not due to any reluctance about the importance of the Bill. By joining now, we are expressing our commitment to a new and expanded Europe.

Taking into account our involvement with the Council of Europe, our contribution over the years, our GDP performance and our economic growth, this is a very important and historic time in Europe. We have enlarged the Union to 25 countries; two or perhaps three new member states will join in the next few years and the European constitution is also being brought forward. All of this comes together at a very important time and Ireland is playing a key role, having just completed its Presidency. This represents a strong statement by Ireland that it intends to continue to support the expanded Europe, particularly the eastern European countries.

Senator McDowell also welcomed the Bill and noted the shift in our support for developmental institutions. He referred to the World Bank and the IMF, in regard to which I note and accept his points. The Senator asked about the loan portfolio of the bank. The current position is that the bank has disbursed loans totalling €1.58 billion in 2003, which is slightly more than the €1.53 billion disbursed in 2002. The outstanding loan portfolio at present is €11 billion. The Council of Europe Development Bank's new medium-term strategy for the years 2005 to 2009 seeks to keep a similar rate of annual disbursements — €1.6 billion in 2005 and 2006 — while increasing its operations in central and south-eastern Europe, where it is placing its greatest emphasis.

Senator McDowell referred to the immunity provision in the Bill. This diplomatic immunity is a standard practice, contained in all types of international legislation. It gives immunity to the management, staff and agents of the bank irrespective of the country in which they work so that they can do business, move around and be safe and secure in the knowledge they are protected in the work they do.

The Senator was very critical about the Government's position on the ODA budget, describing it as absurd and dishonest. I note the points made about the ODA budget but they are not relevant to this Bill. Our payments to this bank, on becoming a member, are our contributions to the capital and reserves of the bank. The payments are new and are in addition to our ODA contributions.

The target of 0.7% remains as far as the Government is concerned and the increases announced in the Book of Estimates represent major progress towards that goal. In securing an increase of €60 million in 2005 and minimum levels of increase of €65 million in each of 2006 and 2007, we can now plan on a far more secure footing. We are moving firmly and progressively toward our objective of reaching the UN target. By any standards, increases in ODA spending announced in the Book of Estimates are huge. We have not reached where we want to go but we are moving steadily in that direction. The increases are dramatic. Our overall contribution to ODA in 1994 was just €96 million. Next year, it will be €535 million and it will reach €665 million in 2007. We are joint seventh in terms of ODA, among the most generous donors in the world and well above the European average.

Given our very high growth rates, we are in a sense victims of our own success. Any reasonable person would accept that €190 million is a massive increase and we will continue to build rapidly and expand qualitatively on this very strong base. The total spend on ODA over the next three years will amount to approximately €1.8 billion. One must also add to that Ireland's contribution to the World Food Programme, with which I dealt while working on my previous portfolio. There is great respect for Ireland's generosity, without condition, qualification or normal standard criteria in regard to business transacted between us and the donor and so on. There is respect for Ireland and the fact that we give money so generously, without condition or qualification but according to the normal standard criteria. We do not impose conditions whereby a certain amount of business must be done in this country or a certain amount of products must be bought from this country, unlike other countries which might make a much bigger contribution but which attach strong conditions. That Ireland has made such a contribution is accepted across the world and we are proud of our success.

The Taoiseach gave a commitment in 2000 when our GDP was at a certain level. Based on that figure we believed we would reach the target of 0.7% over a number of years. Our GDP has performed admirably and we want that to continue. We will work progressively to achieve a realistic figure as quickly as possible. My colleague, the Minister of State, Deputy Conor Lenihan, is doing outstanding work in this area. He has been focused and fair in outlining the facts. Members can be assured that he has made a huge contribution already, along with the Minister, Deputy Dermot Ahern, and the Minister for Finance, Deputy Cowen, to ensure we provide this massive increase. We are confident that we will continue to enhance Ireland's reputation as one of the world's greatest donors to the development aid programme.

Senator Ormonde made a number of points about the reporting arrangements of the bank. The bank publishes an annual report which is transmitted to the Council of Ministers. The bank's activities are managed by the governing body and the administrative council, of which Ireland will be a member. The annual report is available to the general public. It is not necessary to report on the operations of the bank to the House and there is no reporting to the Oireachtas on the operation of the other two European development banks, the European Investment Bank and the European Bank for Reconstruction and Development. Their annual reports are published and are available as required but it is not mandatory to make the reports available.

Senator Daly welcomed the Bill and referred to the importance of social cohesion in the new states of eastern Europe and in the former Soviet Union. Indeed, his remarks rang alarm bells for me and given that there are almost three years left to the next election, I will take due heed of them. Senator Ó Murchú referred to how Ireland has benefited from supports since it joined the European Union. Now is the time, as Senator Mansergh also pointed out, to repay some of the help we received over the years.

Senator Mansergh cited the difficulties in some of the fledgling states of eastern Europe at present. He spoke about the quality of life report in The Economist. I endorse that report. Last week, I addressed the 25 European Union ambassadors or heads of mission in this country and each one spoke about that report and the quality of life in this country. It was heart-warming to find such confidence in diplomats of such high calibre. They regard Ireland as one of the most outstanding places in the world and confirmed what was reported in The Economist. The Government's job and goal is to enhance that.

Senator Mooney raised a number of queries about Germany and borrowing by the bank for apprenticeship training and so forth. Senator McDowell asked the same question with regard to local authorities. There are no plans at present to use the bank for programmes in this country. We believe our GDP, economic capacity, the resources and reserves that are available and the liquidity of our institutions are sufficient to allow us to use our own resources. Indeed, there is supplementary support for various programmes from Europe. There is no reason to call on resources from this bank so we have no intention of using them at this time.

Senator Mooney also spoke about Kosovo. We are pleased with the recent elections that took place there. It is to be hoped there will be acceptance of the democratic result and that a government can be formed. Hopefully, under the EU-UN administration, democracy will be allowed to sustain itself over the next number of years, people will be in control of the government that is formed, there will be acceptance of the government and Kosovo can become a successful country in its own right with the support it gets from the EU, the UN and the leadership that is critical for its future.

I thank Senators for giving the Bill their speedy attention. The Bill has been awaiting consideration in the Dáil since February. It came close to discussion on several occasions but other legislation resulted in the postponement of its consideration. It is close to the date of acceptance of the conditions of membership and the Seanad's attention to the Bill today is much appreciated. I thank the Senators for their interesting contributions and their support of the Bill. It is encouraging that all sides of the House are committed to the expression of solidarity and social inclusion in the wider Europe which is the core mission of the Council of Europe Development Bank. I look forward to Committee Stage at 5.30 p.m.

Question put and agreed to.

Photo of Paddy BurkePaddy Burke (Fine Gael)
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When is it proposed to take Committee Stage?

Photo of Mary O'RourkeMary O'Rourke (Fianna Fail)
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At 5.30 p.m. this evening.

Committee Stage ordered for 5.30 p.m. today.

Sitting suspended at 1.05 p.m. and resumed at 2 p.m.