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Dáil
‹ Leaders' Questions

Donegal poverty and regional development

Summary

Deputy Pringle criticised rising fuel and food poverty, hospital waiting lists, inadequate broadband plans and the lack of balanced economic development in Donegal. The Tánaiste highlighted restored Christmas bonuses, tourism supported by the 9% VAT rate, school investment, enterprise measures and public-service employment, but the Deputy attributed progress to local resilience rather than Government policy.

As the Dáil comes to the end of its term, it would be useful to paint a picture of the Government's achievements in the past five years. There is no better way of doing this than giving a comparative rundown to show how my county of Donegal has fared since the Government came to power. There are 31,000 people suffering from fuel poverty, up 10,000 since 2014. In 2013, 18,700 people were suffering from food poverty, according to a survey carried out by Mandate and Unite. Outpatient waiting lists at Letterkenny University Hospital have soared by 70%, while the number seeking day case appointments has increased by 50%. Some 60% of the population of the county have medical cards, while 16,241 were on the live register in December. Up to 20,000 young people have emigrated from the county, leaving, according to the NASC, high levels of deprivation and high dependency ratios behind them. Only eight of 149 electoral divisions have figures above the national average for deprivation indicators.

The level of Enterprise Ireland supported job creation increased by 2% in the north-west region in 2015. Ballybofey, County Donegal, has the highest commercial property vacancy rate, at over 28%, according to An Post's geodirectory survey. Some 52% of households in the county will have to rely on State intervention to get broadband and will have to wait until 2021 to see this objective realised. Disposable income in the county is at 80% of the national average. Social transfers make up 40% of household disposable income in the county. A total of 1,485 farmers depend on farm assist to supplement their incomes, while 101 primary schools are working with reduced teaching staff. Approximately 67% of third level students from the county are in receipt of SUSI grants. According to the Central Bank, in February 2015 some 15% of homeowners were in serious mortgage arrears, with hundreds of repossession cases before the courts every month. Add to this the cuts in expenditure, including the reduction of €182,000 since 2009 for the Donegal Centre for Independent Living, and the resulting inability to provide care supports for people with disabilities in a county in which over 21,000 people are suffering from a disability.

Meanwhile, on the Tánaiste's watch, according to the CSO, the top 10% of income earners in the country hold over 54% of income, with the top 1% holding 15% of its entire wealth. Budget 2016 has accelerated this trend, with tax changes such as the cut in USC benefiting those on incomes of €70,000 and above. Is this a record of which the Tánaiste is proud? Based on this, why should the people of County Donegal and Ireland allow Fine Gael or Fianna Fáil another term in office?

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I thank the Deputy for that commentary on County Donegal where he mentioned many people depended on social transfers. That is the reason, as Minister for Social Protection, I was delighted to be able to restore the Christmas bonus, particularly for older and retired persons in the county who relied on their State contributory or non-contributory pension. I was delighted to increase the percentage to 75%. This meant payments for pensioner couples of €320 before Christmas to help with Christmas expenses. For a single person, the amount came to €170.

Thankfully, the cost of oil and other fuels has fallen in the past year. Notwithstanding this, because of the level of economic growth, on 1 January I raised the fuel allowance by €2.50 per week. Of the 400,000 households that will benefit from the improvement in the allowance, many of them are in County Donegal. In addition, I was able to grant a small increase in the weekly pension rate to people aged over 66 years of €3. Many of these payments will find their way to people living in County Donegal. Also, for those who do not have medical cards, last year we introduced doctor cards for children under six years and people aged over 70. We hope that, if the electorate chooses to return the Government to office, during the life of the next Government we will be able to extend these cards to all primary schoolchildren and, ultimately, all children and various categories of older people.

Having visited County Donegal this summer and spoken to many of those managing social protection offices and people working in the hotel business, I know that the county has seen a singular renaissance in tourism as a consequence of the Government's development of the Wild Atlantic Way. I am happy to report from talking to people involved in hotels in County Donegal-----

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I also had the opportunity to attend a number of tourism fairs and the commentary from County Donegal is that the marketing of the county, particularly to people in America and Europe, including the United Kingdom, has been highly successful. I am sure Deputy Thomas Pringle saw this during the summer. Also, because of the strength of sterling and the dollar, taking a holiday in County Donegal has become significantly cheaper and better value for people from the United States and the United Kingdom.

That is reflected in the number of visitors to Donegal.

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There is better value in Dublin Bay North.

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With regard to education and schools, from the day the Government was elected we agreed we would have a relentless focus on unemployment.

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And attacking the poor.

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For that purpose, we set out rebuilding the schools of this country.

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What about emigration?

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The Government made cuts to all the small schools.

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Around Donegal we have invested in school refurbishments and new schools. Not only that but we hope to be in a position to phase out prefabs over the next few years.

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That commitment was made five years ago.

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Come back to planet Earth.

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Both Enterprise Ireland and IDA Ireland are on a county-by-county basis specifically seeking the development of local business. I am happy to say there has been a large surge in the formation of new businesses. There are approximately 10,000 people being supported with back-to-work enterprise allowances and quite a number are in Donegal.

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Get them off the live register at all costs.

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The Deputy has obviously chosen to see the glass as half-empty but there are many-----

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Is the boat half-full or half-empty?

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-----opportunities for people in Donegal.

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Seán Fleming Deputy Sean Fleming Fianna Fáil

The glass is broken.

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I see their strength, resilience, creativity, energy and vigour, which has seen Donegal thriving, particularly in the tourism area.

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Despite the Government.

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The improvements in social protection, in particular, have been of some assistance, specifically to older and retired people living in Donegal.

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It is the resilience and ingenuity of the people of Donegal that has seen those developments-----

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I am glad the Deputy remembers that.

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He represents them.

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-----in spite of the Government's support or anything the Government has done for the county.

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Businesses, including tourism businesses, in Donegal must wait until 2021 to get adequate broadband under the Government's plan. The Government has consistently refused to prioritise the areas most marginalised in the roll-out of broadband despite questions from me in this House. The people of Donegal are resilient and they have the ingenuity to build but they are not getting the support from the Government to allow that to happen. That is the difference. The Tánaiste spoke about increasing tourism and mentioned exchange rates but that has nothing to do with the Government's policies.

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What about the VAT rate being changed from 13.5% to 9%?

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The exchange rate is completely out of the Government's control and it cannot do anything about it. The Government must focus on rural Ireland and give it the tools to be able to develop; the people will develop it. The Tánaiste mentioned IDA Ireland in her contribution and last year it made three visits to County Donegal. The only place in the county it will look at developing is Letterkenny but there is much more to the county than Letterkenny. We need development balance across the county.

On the Tánaiste's watch, the wealthy are getting wealthier and inequality is growing. Our young people continue to emigrate from rural Ireland. The Tánaiste is asking people to give her Government another five-year term to ensure it can continue the policies that will only increase inequality.

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With regard to specific measures to support County Donegal, I remind the Deputy that one of the first actions of the Government was to reduce the VAT rate for tourism and similar services from 13.5% to 9%. The Deputy may speak to any hotelier, restaurant owner or hospitality provider in Donegal and he or she will tell him that. Before the budget, they lobbied intensively to ensure the reduction to 9% stayed in place. Along the western seaboard, the reduction in VAT has been at the base of a significant expansion in tourism. That has come in conjunction with the skilful marketing development of the Wild Atlantic Way.

The public sector is a very significant employer in County Donegal and I remind the Deputy that ordinary public sector workers in the county would on 1 January have seen a reduction in the amount of USC paid. That reduction is focused on people earning between €25,000 and €70,000 per year.

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That is not true. Read the IMF report. Half the benefit is to those earning more than €70,000.

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There is a cap.

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Yes. The Deputy should read the IMF report and ponder it.

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I have done so. I have blown the Tánaiste's spin out of the water.

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The public sector is a major employer in County Donegal and that includes my Department of Social Protection. We have super staff in Donegal.

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The Tánaiste is making this up.

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Is she running in County Donegal?

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I am very proud of the staff in the Department of Social Protection in County Donegal. The Deputies have no right to sneer and laugh at them because they work in the Department of Social Protection.

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The Government's record in County Donegal has-----

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They give an excellent service. They have seen a reduction in the amount of USC paid. It is capped at people earning €70,000. That is the way it has been arranged.

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The IMF indicates it is a deeply regressive move.

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Those people have seen the beginning of the rolling back of financial emergency measures in the public interest, FEMPI, measures taken by Fianna Fáil when it wrecked the economy. That will be rolled back over the next 24 months. For the significant number of public sector employees in County Donegal, the new year has begun on a positive, if modest, note. If we are returned to Government by the people of County Donegal and the rest of Ireland-----

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The Tánaiste's party is not even running a candidate there.

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-----we will be able to improve that position every year for the next five years.

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