Seanad debates

Tuesday, 14 February 2023

Nithe i dtosach suíonna - Commencement Matters

Departmental Programmes

2:30 pm

Photo of Robbie GallagherRobbie Gallagher (Fianna Fail)
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The Minister is very welcome to the Chamber this afternoon. A number of years ago the Nuremore Hotel and Country Club in Carrickmacross hit the headlines for hosting Mr. Jack Charlton and the Irish soccer team back in the heady days of the successful Irish soccer teams we used to have. Hopefully, it will not be long before we have such days again. Unfortunately, today the hotel is hitting the headlines for more negative reasons. Central to the local economy of Carrickmacross and regional tourism generation for many years, the venue was purchased by the Kylin Prime Group, an investment firm founded by Chinese entrepreneur Mr. Kai Dai who is one the biggest cash-for-visa brokers and has benefited from the immigrant investor programme, IIP. Mr. Dai founded the Huawen Foundation, a cash-for-visa firm that offers investors an opportunity to avail of Irish residency under the IIP.

In Carrickmacross, hopes were high with regard to the expected investment in the hotel but, unfortunately, no such investment has taken place to date. More seriously, last December, staff staged a sit-in protest because their wages were not being paid on time. They claimed that the issue had been going on for a month but hotel management said that this was due to an issue outside of its control. On 1 January, most of the staff were placed on a temporary 12-week lay off, allegedly to allow renovations to take place. So far, there is no sign of any work taking place. The leisure centre and golf club, which were expected to remain operational, have now closed, leaving members out of pocket. The electricity and gas have apparently been disconnected. SIPTU indicates that the hotel appears to have been closed down and claims that the company is endeavouring to force workers into terminating their own employment by way of redundancy. The avenue for communication with workers appears to have completely shut down, which is very worrying indeed.

The IIP is supposed to bring investment into the State. It soared in popularity in recent years, particularly in 2022, with the number of would-be investors from all countries hitting a record of 812, nearly twice the record set in 2021. The programme should be a win-win for the State. Since 2012, more than 1,500 applications have been approved, with investment valued at in excess of €1 billion. Unfortunately, the experience at the Nuremore Hotel has not been positive. It may be an isolated case but it clearly deserves attention. I spoke to the workers again last week. My heart goes out to them because they are owed three weeks' wages and they are totally insecure as to what the future might hold for them. I am sure the Minister would agree that this situation needs to be resolved.I would welcome the Minister's comments this afternoon.

Photo of Simon HarrisSimon Harris (Wicklow, Fine Gael)
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I thank the Senator for raising this important matter. As the Senator knows and as I conveyed to the House earlier, it would not be appropriate for me to provide details on or make reference to specific projects but I can only imagine the difficulty and challenges for workers, as Senator Gallagher outlined. I think of them and their families. I understand his request for clarification for them. It seems to me that a number of the issues raised may be relevant for certain labour rights bodies, other organisations, workplace relations and the like.

On the more broad issue, I am pleased that I have been invited to the Seanad today because it is quite significant as regards timing because, as the Senator may be aware, today I obtained approval from Government to close the immigrant investor programme to further applications with effect from close of business, tomorrow, Wednesday, 15 February. The immigrant investor programme was established over a decade ago, during a time of unprecedented economic difficulty, to stimulate investment in Ireland that would be of strategic and public benefit to the State. Since its inception, the programme has brought, as the Senator said, significant investment to Ireland and has been operated by my Department to the highest professional standards. However, it is important that we keep all programmes under review, including any implications for wider public policy, such as the continuing appropriateness and suitability of this scheme for cultural, social and economic use. We have also taken on board a number of reports and findings from international bodies such as the European Commission, the Council of Europe and the OECD on similar investment schemes. Taking all of this into account, and informed by both internal and external reviews, I recommended to Government that it was timely to close the programme to new applications; I received Government agreement to do so this afternoon.

Since its inception, the IIP has approved investment of almost €1.252 billion, which has benefited many enterprises, both economic and social, including community and sporting organisations. The closure of the programme will take effect from close of business tomorrow, Wednesday, 15 February 2023. The closure of the IIP will not affect existing projects or individuals already approved under the programme. Current applications on hand at the time of closure will continue to be processed. In addition, there are a number of projects for which an application has not been formally submitted but have been significantly developed following contact with the IIP unit of the Department of Justice. It is proposed that such projects be given a period of three months in which to finalise and submit formal applications. Otherwise, the scheme will be closed to all new applications from close of business tomorrow, 15 February. Detailed communications will be provided through the immigration service delivery website on the arrangements applicable to the closure and winding down of the scheme. All applicants are subject to, and remaining applications will continue to be subject to, rigorous screening by the Department of Justice as to suitability for permission to enter and reside in the State. The IIP unit undertakes detailed due diligence, politically-exposed persons and sanction checks in respect of prospective applicants, accessing reputable international databases as and when required to ensure that only reputable individuals are eligible for permission. If approved, the applicant makes their actual investment in accordance with their approved application, provides evidence of same and it is only on completion of this process that they are issued with an IIP permission letter and, on registration, a stamp 4 immigration permission. Ireland is in a very different economic space than when the scheme was introduced in 2012. We see many countries around the world reviewing, revising and in some cases deciding to close similar schemes. I will publish details of interim measures on the immigration services website, irishimmigration.ie, in the coming days.

The Government also operates a start-up entrepreneur programme, STEP, also established in 2012, as a way for entrepreneurs with an innovative idea to apply for a residence permission in Ireland. This scheme will continue. I take seriously the issues the Senator raised. I take the opportunity today to outline a pretty significant decision the Government has made in this space. It sounds to me that various issues raised may well be appropriate for a variety of bodies and organisations distinct and separate from the IIP programme. I am happy to link with Senator offline about that matter.

Photo of Robbie GallagherRobbie Gallagher (Fianna Fail)
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I thank the Minister for his response. It is news that this investor programme will be closed down as and from tomorrow at the close of business. In more general terms, what motivated that particular decision? My main concern is the workers attached to the hotel and what recourse the State has through the Department of Justice or others in respect of non-compliance with commitments given by the applicant at that time.I would like to think there is some recourse and to know what that is. The Minister could liaise with his Cabinet colleagues with a view to addressing the workers' concerns regarding their rights. I would really appreciate that and would like the Minister to commit to it this afternoon.

I stressed the importance of the hotel to the local economy of Carrickmacross, County Monaghan, and indeed the whole north east. We are trying to build the tourism product there and need the hotel to remain functioning. I have no doubt that this is the wish of the vast majority of the people of Carrickmacross.

Photo of Simon HarrisSimon Harris (Wicklow, Fine Gael)
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I thank the Senator. I will certainly undertake to liaise with appropriate colleagues in the Cabinet, as I know the Senator will do. I will certainly be happy to help facilitate it, as appropriate.

What motivated my decision to seek Government approval to close the immigrant investment programme to new applicants, effective from the close of business tomorrow, Wednesday, 15 February, was very clear, emphatic advice to me from officials in the Department of Justice to the effect that the scheme has served its purpose, that the times have changed and that the context has changed very significantly. Even internationally, the context has changed. I referred in my opening statement to the views of several international organisations, including the OECD, on such immigrant investment programmes. Generally, I feel it is a good idea to decouple the work of investment from matters that my Department has responsibility for. My Department is one that has responsibility for border security, national security and security in a political sense for An Garda Síochána, although it is independent in its operation. It is important that the public policy appropriateness of the continuance of such a scheme is always stress tested. I have landed at the view that it is no longer appropriate to keep the scheme open, effective from tomorrow. I am pleased the Cabinet has agreed to that. I will certainly continue to liaise with the Senator on this issue.