Hildegarde Naughton (Fine Gael)
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I thank the Minister of State for coming to the House to discuss this important matter. Recent events relating to the provision of air transport to the Aran Islands have again highlighted the vulnerability and disadvantage of those striving to keep our island communities alive. In that light, I very much welcome the signing of an interim air service contract for the islands. This will secure jobs at Aer Arann for the next year and give space, during which a longer tender can be advertised. I use my time this morning perhaps to reinforce a point and ask the Minister of State to bear it continually in mind.

The people on all our islands are trying their best to keep their communities alive. It is a simple fact they require assistance and support to do this. Government community development schemes carry out valuable work, particularly with non-Gaeltacht islands, to support island sustainability. There are various other grants and schemes available from other Departments. These are all welcome and positive methods of assistance. However, more could be achieved. For example, could we consider greater use of the European Regional Development Fund and Cohesion Fund? These can be specifically aimed at EU regions with specific geographical characteristics, namely islands, mountain regions and sparsely populated areas. The economic development of these areas is considered important in helping the EU to attain its important territorial cohesion objective. Additionally, I draw the Minister of State's attention to the European agricultural fund for rural development.This is a mechanism under the Common Agricultural Policy, CAP. The programme runs until 2020 and there is no deadline for grants. It is particularly geared towards less developed regions.

While I do not have time to develop my suggestions to their fullest this morning, I ask the Minister of State to consider one suggestion in particular: that he convene a cross-departmental group to consider all aspects of policy and funding in the context of the sustainability of our island communities. There are very few Departments that do not impinge on island development in some way, and a more co-ordinated approach might assist. There also appear to be sources of EU funding left untapped, or not sufficiently tapped at least. I look forward to the Minister of State's comments on this matter.

Joe McHugh (Donegal North East, Fine Gael)
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Gabhaim mo bhuíochas leis an Seanadóir as ucht an ábhair fíor-thábhachtach seo a ardú inniu. As the Senator may be aware, the report of an interdepartmental co-ordinating committee on island development chaired by the then Minister of State, Donal Carey, in 1996 presented a strategic framework for developing the offshore islands of Ireland. This report made a number of recommendations to Government with the aim of supporting island communities in their economic and cultural development, preserving and enhancing their unique cultural and linguistic heritage and providing island communities with access to adequate levels of public services so as to facilitate full participation in the life of the nation. This report also recognised that access was the single most important issue facing island communities.

At that time, the number of lifeline ferry services supported by the State was very limited. There was undoubtedly a need for action to correct this deficiency, and over the years the number of services to the islands has grown. Now my Department funds 23 services to 19 islands. Included in these are passenger ferry services, cargo ferry services and air services. The budget for these services has increased since I came into office, and as part of budget 2016 the allocation available for these services will be increased again for 2016, from €5.9 million to €6.631 million.

In addition to providing transportation services, my Department endeavours to assist islanders and island life in other ways. During 2015 my Department reached an agreement with the Department of Environment, Community and Local Government regarding the funding for development offices on non-Gaeltacht islands. This funding enabled them to continue delivering vital services and to improve the quality of life for the residents of the islands. Through the increased allocation available to me for 2016, I will be providing assistance for these vital services.

Over the years my Department has improved harbour infrastructure on the islands and on corresponding harbours on the mainland. The largest project ever undertaken on the Irish islands, the €45 million redevelopment of Cill Ronain Harbour, a harbour of significant regional importance which handles in the region of 300,000 passengers annually, was constructed with major investment by my Department. While the capital budget available to me has decreased significantly, assistance is still provided to relevant local authorities for focused works on the islands, particularly directed to issues of safety.

As the Senator may be aware there have been issues regarding the renewal of the public service obligation contract for air services to the Aran Islands. I am pleased to announce that since earlier this week my Department has agreed an interim contract with Galway Aviation Services Limited for the provision of an air service for the Aran Islands from 1 October 2015 to 30 September 2016. Under the interim contract, the Department will subsidise the same level of service as it did under the previous contract. The Department, in conjunction with the Office of Government Procurement, will over the coming period proceed to undertake a new procurement process in accordance with national procurement rules and EU Regulation 1008/2008 in order to agree a four-year contract for the air service. Obviously, a re-engagement with the island communities will happen side-by-side with that process.

My Department consults with island communities on a regular basis, and I have visited many of the offshore islands since my appointment as Minister of State with special responsibility for the islands. In the last 12 months I have tried to go to the islands I had not visited previously. I have had the pleasure of being on the Aran Islands but I had not been to places like Sherkin Island, Bere Island, Owey Island in my own county, Tory Island, Inishbofin and Gola Island. I have tried to get to as many of the islands as possible that I had not been to before. Funding for vital access services to the islands has been maintained by my Department throughout the recent economic downturn and it is my intention to continue with this support in the future. However, I am very aware of the need to get value for money so that the funding available will reap the maximum benefit for all our island communities.

The Senator will also be aware of the need to comply with national and EU law in providing various supports for our islands. My Department will continue to adhere to the relevant regulations and guidelines while at the same time ensuring as far as possible that all island communities are assisted in their efforts to get the services that are sometimes taken for granted on the mainland.

Gabhaim buíochas leis an Seanadoir as ucht an t-ábhar seo a ardú. I thank the Senator for her remarks. We can all agree that our islands are a unique and valued part of our community. My Department will continue to support the island communities in their economic, social and cultural development in order to preserve and enhance their unique heritage and to enable the islanders to secure access to public services in order that they can have full and active participation in the overall economic and social life of the nation.

Hildegarde Naughton (Fine Gael)
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I thank the Minister of State for his comprehensive reply. It must be borne in mind that while some would say these communities are economically insignificant, they are living, breathing parts of our culture and must be supported. The Minister of State has said that quite clearly this morning. I am concerned about the issue of consultation. The Minister of State has outlined details of his direct engagement with the islanders, which is critical. If one looks back at the early negotiations of the UN treaty for persons with disabilities, the parties were drafting a treaty and thinking they were doing the best for people with disabilities, but there was very little consultation with those affected. Groups representing people with disabilities came up with the phrase "Nothing about us without us." From that moment on, proper consultation took place, and the result was the successful negotiation of that treaty. In the same vein, consultation with the islanders is key here.

Joe McHugh (Donegal North East, Fine Gael)
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I thank the Senator again for her observations and suggestions. She is correct in saying that there are always ways in which we can be creative in terms of accessing necessary funding that could have a direct impact on the lives of those living on our islands. I visited Árain Mhór in the last ten days, along with the Minister for Health, Deputy Varadkar. We got a great insight into the provision of health services there and the importance of such services to islanders. The issue is one of having a direct impact, and a lot of projects at a European level are capable of that. The Senator will be aware of the AranLIFE project on the Aran islands, funding for which was secured from the EU to the tune of approximately €2.5 million. That project is having a very positive impact.

The Senator also mentioned agriculture. She may be aware that the Minister for Agriculture, Food and the Marine, Deputy Coveney, has made special provision for the islands in the new round of single farm payments. The islands have been considered in that context. I agree with the Senator's point that any policy measure that may impact on the islands must be proofed. I continue to engage with Comhdáil Oileáin na hÉireann and will meet that organisation again next week. Consultation is important and has taken place over the last 12 months. That said, if there are new ways of doing things, I am certainly open to that.

We must also be conscious of investments for different islands. On Tory Island, for example, we are investing €250,000 in the development of a helipad, which will be a very welcome infrastructural addition to the island. There are smaller islands, including Inishbofin, Gola and Owey, for example, which do not have a ferry service. They are seeking such a service, especially during the summer, given that tourist numbers are increasing at such an enormous rate along the Wild Atlantic Way. There are development opportunities there and it is important that we engage with them on that. There is a meeting arranged with the smaller island representative group in a few weeks' time. There are plenty of issues involved. I acknowledge the role of the leadership on the islands. During the recent negotiations on air services to the Aran Islands, a number of public meetings were held and approximately 18 politicians from the mainland attended them. The meetings were very dignified. I got feedback from different people who said that the meetings were dignified and well-measured and that there was much leadership shown on the island. I acknowledge that leadership. I also want to acknowledge the new transparent and independent process in which full responsibility is given to the Office of Government Procurement in the Department of Public Expenditure and Reform, and which leaves me outside that process. It is important to acknowledge the professional work that was done by the officials of the Office of Government Procurement and by the Attorney General and the Chief State Solicitor's office. Where there probably was a political weakness was that I was precluded, as Minister of State, from saying anything during the process. The advice from the Chief State Solicitor and the Attorney General was that it was better to say very little in case it would prejudice the process.

This is a new system, it was only introduced in 2014. If there are lessons to be learnt, let us look at these lessons in terms of the needs of the community and island. On the other hand, we all have a responsibility and duty to the taxpayer and a responsibility to due process. The public is very much of the opinion that politicians should not be involved in that process. This is a new process. Politicians are completely outside of the process in terms of the decision and the outcome. If there are lessons to be learnt from the last five to six months, let us look at them and see what we can try to do differently. As a former community worker, I am a big advocate of ensuring that at the centre of any consultation is the community and its needs. We have a duty as legislators to have a very strict adherence to process and to do things right and also to ensure that savings are made, because we have a duty to the taxpayer. So all of that is in the mix, and no doubt that will form part of the conversation on the new tender process in the future.

I thank the Senator again for raising this matter. It has given me an opportunity to talk a little about the process. Key to any future deliberation around policy or policy change on the islands is that the communities have to be at the heart of it. The officials in my Department are very conscious of the work they are doing. They have been very proactive in providing services. One can see the number of cargo ferries that we have provided on the islands and they do a very professional and thorough job. I acknowledge my officials for the work they do on an ongoing basis. As we go forward with the new tendering process, we will, no doubt, have a very proactive and engaged conversation between the island communities, my own officials, and officials from the Office of Government Procurement to ensure that we continue to provide the service to the islands. Keeping that service was critical to the process. The officials in the Department were very conscious of that from the beginning. I thank the Senator.

Paddy Burke (Fine Gael)
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I thank the Minister of State.