Saincheisteanna Tráthúla - Topical Issue Debate – Dáil Éireann (34th Dáil) – Thursday, 22 May 2025

Saincheisteanna Tráthúla - Topical Issue Debate

Charitable and Voluntary Organisations

Deputy Jennifer Whitmore

I want to raise with the Minister of State today the issue of the immigrant investor fund and the difficulties faced by a number of charities as a result of delays in funding. I thank him for coming to the House today. All too often, we do not get the responsible Minister in the House. It is very welcome that he is here today to answer questions.

A charity in my home constituency of Wicklow, St. Catherine's Association, does incredible work. It is a voluntary association and has worked with children and young adults with intellectual disabilities for many years. It is an invaluable service for hundreds of families across and outside the county. It ensures that each child and young adult can meet their full potential and are fully included in and feel part of their community. The work the association does is so important.

It is trying to expand its functions. It has planned and has approval for building an adult day centre, an administrative and training unit and four respite homes. This will increase the valuable services it provides. It applied for immigrant investor programme, IIP, funding in April 2022 and, three years later, still has not received it. As the Minister of State can imagine, that is causing huge difficulties for the charity. It has done all of the work and has the plans and designs in place. Planning permission has been granted. The diggers are ready, the land is available but the association has still not received any information from the Department on when the funding will be provided.

In July last year, the association was told it could finally access the donor funds, which is quite a significant sum, in the hundreds of thousands. Despite being told that, there is still no sign of the money. The association is becoming very worried at this point. Can the Minister of State provide any clarity on the project or the entire scheme?

The scheme was closed but my understanding is that the process would happen as normal for all applications submitted prior to the scheme closing down. It seems to be a very long and protracted process. I understand the need for robust scrutiny but at some point it becomes a barrier and a stressful situation for these charities. There could be 100 charities in this situation. I know of another one in Kildare, as my colleague Deputy Aidan Farrelly has spoken to me about it. It is Sensational Kids and it is in dire straits waiting for the funding. It has proposed various business plans and it is waiting for this to happen. I hope the Minister of State can give us some clear indication of what will happen to the funds for St. Catherine's and whether they will be available soon. There are 250 children and their families relying on St. Catherine's for services. It provides a function that in most countries would be provided by the government. Because of this we should absolutely pull out all the stops to make sure it can provide the best service that it can, with all the support it requires from the State.

Minister of State at the Department of Justice (Deputy Colm Brophy)

I thank Deputy Whitmore for raising this matter today. It is important to note that as Minister of State with responsibility for migration, I do not comment on individual immigrant investor programme applications. In general terms, I can inform Deputy Whitmore that my Department does not receive or hold funds at any stage in the IIP process, nor does it have any role in the administration of an approved project or investment fund. This is a private matter between a potential investor, or investors, and a potential project concerned.

Approval of an application under the IIP is not an endorsement of a particular project. What it means is that the investor has been approved and the investment meets the objectives of the IIP. The applicant in the IIP process is the investor and not the project owner. The State has no responsibility for the performance of an investment under the programme. This is a matter for the project owner to ensure delivery of an approved project within the timeframe set out in its business plan.

The immigrant investor programme was first introduced by the Irish Government in 2012, when the struggling Irish economy needed investment, to create business and employment opportunities in the State. The programme fulfilled its purpose, and changed circumstances means that such investment routes are no longer a good fit for Ireland, or the needs of a thriving economy and society.

In recent years, I am aware that concerns have been generally expressed about the immigrant investment programme by the EU Commission, the Council of Europe and the OECD in a number of studies on border security, money laundering, tax evasion and circumvention of EU law, and that such programmes gave rise to issues of a broader public policy concern.

While I am satisfied that the IIP was operated to the highest professional standards, the combination of these factors made it timely to close off the programme. The Government agreed to close the IIP to further applications from 15 February 2023. Only the project proposals currently on hand and, by default, the individual investor applications associated with them will be processed to completion. Appropriate arrangements have been put in place for the orderly winding down of the programme. Further information on this process is included in a detailed frequently asked questions document, which is available on the Department's immigration service website.

Deputy Jennifer Whitmore

That is an incredibly disappointing response. It is also very confusing. In one part the Minister of State said it is a private matter between a potential investor and the project concerned and that, essentially, he has nothing to do with the administration of it. In another part, he said the immigrant investor programme was first introduced by the Government and directed us to the Department's immigration service website for information on it. Clearly there is a role here for the Government. Clearly the Government set it up and facilitated it. The Government has a responsibility to those charities which, as I said, are providing a service that the Government is unable to, or will not, provide to ensure those charities, which applied in good faith for this programme under the auspices of the Government, get the money they are due.

I understand the Minister of State cannot speak about specific charities or applicants and that is fine. This response indicates to me that the Minister of State is completely washing his hands of it. Am I to go back to this charity and tell it this has nothing to do with the Government anymore, that it is on its own, and that the programme which the Government and Fine Gael set up has been closed and there are no guarantees about the funding? This charity has made plans on the basis it was approved for this funding. It has been waiting for three years. It is still in discussions or consultations. There is still information going backwards and forwards between it and the organising entity. What am I to tell these charities? Has this absolutely nothing to do with the Government now? I can tell the Minister of State that the charities will be very disappointed if they are told the respite centre for children will not go ahead, the day care centre for adults will not go ahead, and the training centre will not go ahead. It will cause great disappointment in Wicklow if I go back and tell people a Fine Gael Minister of State has told me it has nothing to do with the Government.

Deputy Colm Brophy

If Deputy Whitmore is quoting Fine Gael Ministers it is very important that she does so correctly.

Deputy Jennifer Whitmore

It is all written here.

Deputy Colm Brophy

To continue to answer Deputy Whitmore, I am aware that applicants and projects are anxious to receive a decision on their applications. I assure her that the IIP unit in the Department is committed to ensuring that all applications are examined on their own merits and endeavours to conclude decisions in a timely manner. The IIP unit continues to communicate with projects seeking to benefit from investments made in connection with IIP applications, and more specifically with regard to how the terms of the programme apply to their particular projects, while also monitoring all of the projects for delivery and compliance with the IIP.

In the event there are serious issues of concern arising about the delivery of a project, necessary action will be taken, which may include reporting the matter to the relevant authorities, pausing the process for further investor applications associated with the project or withdrawing the approval given. Since the closure of the programme, project applications have continued to be submitted to the evaluation committee for consideration. The committee makes its determination as to whether a project is suitable for IIP investment. If deemed suitable, the project application will be submitted to the Minister for final approval. At present, there are approximately 100 IIP project proposals and 1,600 investor applications undergoing or awaiting consideration. Given the volume of applications on hand, therefore, it is expected it will take a number of years to process all of the remaining categories of application for final decision. I assure Deputy Whitmore the IIP unit in the Department is doing everything possible to progress the applications as quickly as possible.

Deputy Jennifer Whitmore

I would like the script for the follow-up response.

Deputy Colm Brophy

We will get it to Deputy Whitmore.

Tax Code

Deputy Eoin Hayes

As this is my first time speaking in the House, I want to start by thanking the Minister of State and the many Members of the House from all parties and none who have been so welcoming to me since the start of the Dáil term. While friendships may be tested through the course of political life, I hope I can earn and keep the respect of my colleagues, as I promise respect for them and for the mandate entrusted to me by the Irish people and by Bunreacht na hÉireann. It would be remiss of me not to thank also the more than 100 ardent campaigners and supporters who helped to get me elected, many of whom are here today. In particular I thank my campaign manager Kieran Clarke, and the two campaigners, constituents and members of my party, Amy and Paul, who have joined my staff. I was and am so lucky to be surrounded by such great friends and family. In particular I thank my mom and dad, Morina and Eamon, who have been the most loving and dedicated parents I could have asked for, and my partner Triona, who has been the greatest joy and most solid rock I have ever had. Lastly, but most importantly, I owe a profound gratitude to the thousands of constituents in south Dublin city who honoured me with their vote and the great privilege of representing them here. It has been deeply humbling to receive a mandate from my peers in the pursuit of a better country, guided by the principles of social justice and progressive politics. I take up the mantle with deep reverence for the trust they have placed in me and the encouragement they have given me since I have been elected.

Earlier this month, the Business Post published the work of a research team in UCD led by Professor Aidan Regan revealing what they called a $1 trillion tax mirage, which they said was a conservative estimate by the way, in the domiciling of intellectual property assets by multinationals in Ireland to seek to exploit preferential tax rates on their global profits. To put this in context, it is altogether likely that the value of this multinational intellectual property exceeds the entire net wealth of Irish households, most recently estimated at approximately €1.23 trillion, including approximately €900 billion in housing assets. The authors of the report called it a paper-based prosperity which was fundamentally distortive to the Irish economy. I do not think anyone who has looked seriously at the tax mirage identified in this investigation can feel anything other than a horrifying sense of déjà vu. It appears that the accusation of Nobel laureate Professor Paul Krugman of "leprechaun economics" with regard to Fine Gael in the 2010s still applies.

For the person sitting at home and perhaps watching these proceedings, what does this fundamental distortion mean? What is the actual danger to the Irish economy and society? The same report identified this tax mirage as the main driving force in the rise in corporate tax receipts in the post-crash period. It was a rise from approximately €4 billion in 2013 to €21.4 billion in 2022 or from 4% of the State's budget to approximately one fifth. To put that in further context, given that Revenue has estimated that half of our corporate taxes are attributable to about ten companies, at the stroke of a pen in one foreign boardroom the State's coffers could lose approximately €1 billion. Such a loss of income to the State would be serious. One billion euro is about the size of our entire climate action budget or the annual capital expenditure of the HSE. That is just one boardroom. If all the multinational companies, say at the instigation of a US Administration, were to restructure their IP holdings, the damage could be in the tens of billions of euro. To put that in context, the total reduction in real voted Government expenditure in the middle of the financial crisis from peak to trough over multiple years was €10 billion, and I have not even spoken about tariffs.

Will the Minister of State recognise this existential threat to our financial viability and economy? Will he tell the House what the Government is planning to do to mitigate or manage this incredible concentration of risk in the public finances?

Minister of State at the Department of Finance (Deputy Robert Troy)

I congratulate Deputy Hayes on making his maiden speech in the Dáil. I did not expect to be saying that at this stage. However, I congratulate him and his supporters who join him today.

As a small open globalised economy that is home to substantial levels of foreign direct investment, elevated levels of intellectual property, and by extension capital allowances associated with that intellectual property, are inevitable. The development, enhancement and exploitation of this intellectual property in Ireland forms a key part of the activities of multinational enterprises in Ireland and especially so in the IT and pharmaceutical sectors. Capital allowances associated with such activity are an ordinary part of any corporation tax system.

The OECD base erosion and profit shifting, BEPS, project introduced rules to better align substance and intellectual property. As a result, Ireland has seen a significant increase in onshoring of intellectual property in recent years, as multinational enterprises aligned intellectual property previously held offshore with the substantive economic activities that take place here, including the hundreds of thousands of jobs in these sectors in Ireland. Ireland was not the only country to benefit from intellectual property onshoring since the BEPS actions were agreed in 2015. Groups also onshored intellectual property to the US and to other jurisdictions worldwide where they have located substantial operations.

Recent articles highlight the exposure for the Irish economy of the recent onshorings, not least the vulnerabilities and concentration of risks associated with our corporate tax receipts. This Government and successive Ministers for Finance have been cognisant of these risks. While these revenues are welcome, they may well be transitory and cannot be relied on to fund ongoing spending commitments, which the Government has recognised through the establishment of two long-term funds, the Future Ireland Fund and the Infrastructure, Climate and Nature Fund. It is important that we continue to support the establishment and growth of domestic businesses to improve the resilience of our corporate tax revenues.

Ireland's corporate tax policy, and broader industrial strategy, has consistently focused on attracting real and substantive investment that brings jobs and real activity to Ireland. The elevated level of intellectual property in lreland is a natural outcome of having the substantial operations of many of the world’s leading multinational companies with investments here. This investment creates real and substantive employment and economic activity in the State. The IDA has indicated that employment by its client companies is in excess of 300,000 people, with more than 110,000 people employed in the information and communications services sector and more than 109,000 in modern manufacturing alone. This demonstrates the real economic activity taking place which is underpinned by the elevated levels of intellectual property which is exploited, developed and enhanced through those Irish entities. Ireland has fully implemented agreed new international tax standards, including transposition of the anti-tax avoidance directives, implementation of the BEPS action plan measures, and implementation of the OECD pillar 2 minimum tax agreement. Ireland's tax rules are in line with international norms.

We have been, and continue to be, an attractive location for foreign direct investment as evidenced by the good jobs provided by multinational enterprises in the State. Tax is only one element of this story, with other factors such as: a young, educated workforce; political stability; a common law legal system; access to the EU market; ease of doing business; tax certainty; and pro-business regulation also being key features.

Deputy Eoin Hayes

The Minister of State referenced a lot about substance and substantive positions and I am quite disappointed with that reply. I am not talking about BEPS agreements or pillar 2 or the OECD agreements. I am talking about intellectual property and the legal architecture that underpins it.

As far as I can tell, on the record of this House, this is the first time this report and the risks it highlighted - a potentially catastrophic decline in the State's resources - are being discussed. There is something deeply problematic about that. A few weeks ago Pat Leahy in The Irish Times quoted a Government official saying that there is no sense that the political system understands the danger we are in. If we need any proof of that, look no further. I am quite confused by the Government's position. On one hand, it projects an image of a prudent steward of the State's coffers, saying that corporate tax receipts will come down, but in the next breath, it dismisses concerns regarding the change in exposure in IP holdings, saying the substantial operations, as the Minister of State just said, are located here. Which is it? Does the Minister of State actually know? In the Apple case, the Government argued the opposite. GNI* was instituted because GDP does not reflect reality.

We are not the only country, but we are perhaps the most significant country to be taking advantage of these kinds of legal structures. Notably, the Government's Central Statistics Office underestimated corporate tangible assets by one third less than this report. Can the Minister of State now give the public assurances the Government is taking this seriously and that it will act expeditiously, even if he does not have the full information?

That brings me to a broader point and question on the Irish economy. It is not simply a matter of rainy day funds. As a political system and as a country, we need to recognise that the tariff threats from the Trump Administration are an emergent feature of a shifting global trend in trade relations and the world economy. We need to reinvent industrial policy, making strategic investments that will allow for a less turbulent outlook. We need to invest in indigenous businesses and see a step change in State capacity and economic interventions. Only then will we have the stable public finances and resilient economy and society the citizens of this Republic deserve.

Deputy Robert Troy

I find it somewhat bizarre that the Deputy is critical that this is the first time this is being raised in the Dáil when he has been here six months himself and this is the first time he spoke.

Deputy Jennifer Whitmore

That is low, Minister.

Deputy Gary Gannon

He made more sense than the Minister of State after six months.

Deputy Robert Troy

Regardless, as I mentioned in my opening statement, capital allowances for intellectual property are a normal part of any tax system. The tax system provides relief in the form of capital allowances against trading income for capital expenditure incurred on the provision of intangible assets for the purposes of trade, both acquired and internally developed. IP allowances may only be deducted from income generated by those assets and a cap applies. A maximum of 80% of relevant profits may be offset by capital allowances in any year, which is below the EU average of almost 82%. Intellectual property is an important aspect of any modern multinational enterprise, but especially in the IT and pharmaceutical sectors, as the Deputy is no doubt aware.

Recent years have seen a substantial period of reform through the OECD BEPS programme which has resulted in real changes to global multinational activities, with firms moving away from locations with little substance to key centres in their value chains including Ireland, as activity in tax havens is wound down. Ireland has continued to implement many reforms to our tax systems in recent years, including the introduction of the EU anti-tax avoidance directive and defensive measures on outbound payments, and we are fully compliant with the OECD standards of transparency and exchange of information about tax measures. Ireland has been to the forefront in implementing the OECD international tax agreement, which seeks to address the tax challenges arising from the digitisation of the economy. Ireland has implemented the agreed OECD pillar 2 minimum effective taxation rate of 15% and we remain deeply engaged in the ongoing work to finalise pillar 1 of the agreement. Our long-standing position remains that the international tax system needs to keep pace with how business is now conducted globally.

An Ceann Comhairle

Before I move to the next Topical Issue, I welcome members of the Garda Síochána Retired Members Association from Donegal who are here in abundance at the behest of our former Minister, Deputy McConalogue. I welcome everybody here today.

Schools Building Projects

Deputy Claire Kerrane

I thank the Ceann Comhairle for allowing this debate to proceed this evening.

In 1996, the Department of Education amalgamated two schools in my constituency in Ballinasloe, County Galway, to become Scoil an Chroí Naofa. This was done with the understanding of the Department of Education that a new school building would be provided. That was 29 years ago.

There have been design teams appointed at several stages, planning permissions have been received and extended, and stage 2(b) submissions have been made - the latest submission to the Department is the third one to date. In 2016, the Department of Education informed the school's board of management that the new school would be going to construction that year, almost a decade ago. There has been false dawn after false dawn for this project and we are no further on. I met with the principal of the school earlier this year and at that point, the stage 2(b) submission was being prepared and was later submitted in March of this year. The latest update I have from the Department is that it is being reviewed.

There are currently 300 children enrolled in the school with a growing waiting list that cannot be touched without additional capacity being made available. The school is unique in that it has been designated a DEIS band 2 school and has been since the status commenced in 2006. The school has three special classes: two for children with developmental language delay and one for children with autism. There would and will be capacity for two autism classes in the new school building. We know, of course, about the demand for special classes and the number of children and families who are left seeking special classes all the time. It is no different in Ballinasloe, where this school's catchment area feeds into counties Galway, Roscommon and Westmeath. It is a very large catchment area.

The school is located across two buildings on opposite sides of a very busy road. It is on Society Street with traffic coming in and out of Ballinasloe. It is one of the main entrances and exits out of the county town. This is really dangerous. Frankly, it is incredible in this day and age that one school is spread across two locations across the road from each other on a very busy road. One building dates back to the 1930s while the second was built in the 1970s. It is a single block with no insulation and single-pane windows. Due to the school being in limbo for the past 20-plus years, it has limited itself in carrying out remedial works because the understanding was that the new school was coming.

Energy bills account for the entire capitation grant every single year. According to Pobal, the Ballinasloe urban area - which is spread across several areas - is categorised as extremely disadvantaged. This is a community and town that is long overdue a new school. The length of time this has gone on is totally unacceptable. I want to see movement on this as a local representative for the area. I want to see this project moved to tender and into construction.

Almost 30 years after the commitment and promise was first made, the Government should look to move on the stage 2(b) submission which has been with the Department since March. The school needs to know when this is happening and have some kind of timeline so it knows this new build is coming. It has gone on for far too long.

Deputy Colm Brophy

I thank the Deputy for raising this matter as it gives me an opportunity, on behalf of the Department of Education and Youth, to outline to the Dáil its current position on Scoil an Chroí Naofa in Ballinasloe, County Galway. This project is included in the Department of Education and Youth’s construction programme which will be delivered under the national development plan, NDP, as part of the Project Ireland 2040 framework. The major building project for the school referred to by the Deputy is currently at an advanced stage of architectural planning - stage 2(b) detailed design - where the design team has secured all statutory applications and is preparing the suite of tender documents. The brief for the project is to provide a new 16-classroom primary school with additional classrooms for pupils with special educational needs. The stage 2(b) submission has been received in the Department for review by the multidisciplinary team, and this review is currently under way. On completion of stage 2(b) design, a meeting of all stakeholders will be organised. On completion of the review, the Department will advise the school authorities and their design team of the progression of the project, including comments for the design team's attention regarding the stage 2(b) submission report.

Deputy Claire Kerrane

I thank the Minister of State for his response. It is welcome that the stage 2(b) submission made by the school is getting attention from the Department but what is important here is that we move things along as quickly as possible. After 29 years, the school and the entire school community have waited long enough. At this point, they have been through five principals while waiting for this school. It is a difficult position to put a school principal and board of management in, with some 300 children enrolled in the school and a growing waiting list. It is also difficult for a school that very much wants to do more for special education by opening special classes and being proactive in making that happen for children in the community.

I am constantly contacted by parents who are struggling to receive and access a special class place for their child. In this case, I was told about some children last year in south Roscommon whose siblings were in the school in Ballinasloe but their brothers and sisters could not attend because the school is at capacity. The real reason - I emphasise the need for progress on this - is the position the school is in across two sides of a busy road.

I again press upon the Minister of State that while I appreciate there has been movement relating to the stage 2(b) submission, this is the third 2(b) submission to go in and this really needs to be the last one. We need to see progress. We need a timeline for when we will see this project go to tender. We need to see the sod turned and construction begin. This has gone on far too long. Many of the children of Ballinasloe should have seen this school and, of course, many of them will have gone on to secondary school and far beyond that by the time we get to this point. Again, there is a safety concern. I would appreciate if the Minister of State would bring this back to the Minister.

Deputy Colm Brophy

I will bring that back to the Minister on the Deputy's behalf. I know there were delays with this relating to a change to increase the number of classrooms, as well as proposals by the local authority to alter the road layout and access. This necessitated a new planning application, as I am sure the Deputy is well aware. The final grant of that planning permission for the project, as currently designed, was received from the local authority in September 2023.

Under Project Ireland 2040, the Department of Education and Youth is investing well in excess of €5 billion during this period to add capacity and develop and upgrade school facilities. The Department of Education and Youth has a strong track record of delivery of school building projects and this was again seen in 2023, notwithstanding the wider construction sector environment. Since 2020, the Department has invested in the region of €5.9 billion in our schools throughout the country, involving the completion of more than 1,350 school building projects. The Department continues to support the delivery of the extensive schools infrastructure programme, which incorporates best practice.

I again thank Deputy Kerrane for raising the question and for giving me the opportunity on behalf of the Minister for Education and Youth, Deputy McEntee, to reassure her that the Department is conscious of the need to continue to support the operation of the school system and intends to provide clarity for individual schools mentioned by the Deputy and their school building project as quickly as possible.

School Facilities

Deputy George Lawlor

CBS Secondary School in New Ross currently has an enrolment of 413 students. It is a coeducational DEIS school and remains the only secondary school in County Wexford without a sports hall. This is a significant disparity which leaves the students and teachers at the school at a significant disadvantage. It is my understanding that the Department of education has already approved, in principle, the construction of a full-sized sports hall internally to comprise of 594 sq. m with an overall scale of 1,048 sq. m if you include all the storage and ancillary services.

An action plan is now urgently needed for the funding to turn the approval into reality. The absence of such a facility in this school not only impacts on the ability to deliver a comprehensive physical education curriculum but also contradicts previous Government strategies for encouraging youth participation in sports and physical activity. We all know these are crucial for student well-being. Investing in a sports hall aligns with national priorities to promote health, fitness and inclusion in education.

The current PE facilities in the school are grossly inadequate and present numerous challenges, particularly in terms of health and safety. There are only two outdoor basketball courts, which are covered in tarmac. This surface is deteriorating, with large cracks appearing in several areas. The outdoor grass area is very uneven and sloped and unsuitable for safe sporting activities. While the school does have an indoor sports area, it is essentially a large classroom. I was in it for the Darkness Into Light event a couple of weeks ago and it really is just a large classroom. The school is expected to carry on its PE activities there. All ball sports or energetic activities are ruled out due to the size of the room. The equipment for PE is stored in a cargo container with no electricity. This creates its own safety risks, particularly during the winter months when light is poor.

The inadequacies in the current set-up extend to health and safety concerns. The outdoor yard is hazardous, especially during wet conditions. The school is also unable to offer students proper changing and shower facilities after their PE classes. Beyond the immediate concerns of health and safety and practicalities, the ability to deliver a comprehensive and varied PE curriculum is significantly hampered. Unfortunately, planning is often dictated by weather and facility limitations, rather than the students' needs. This should not be the case for students in a DEIS school.

Believe it or not, the school celebrates its 175th anniversary this year, yet the sports and PE facilities in the school have seen little progress since 1849. A sports hall would also serve a broader purpose in the school community. It would provide essential space for whole-school events such as assemblies and celebrations. At present the only option for gathering the entire student body together is the local parish church in New Ross. The school has had to hire outdoor stages for school awards and other events. Obviously, these pose logistical challenges when weather conditions are unfavourable.

A sports hall would also provide suitable space for hosting exams, which the school currently struggles with, given the limited indoor facilities. The school is a central part of New Ross town. It offers facilities, albeit limited, to the New Ross Musical Society, St. Michael's Theatre Musical Society, New Ross Drama Workshop and the Polish school. The school also offers its limited outdoor facilities to New Ross Town FC and to United Striders AC. They make use of the off-site fields, which are approximately 1 km from the school. Given the constraints, the school really does need this facility. It should be an urgent addition to this school after 175 years.

Deputy Colm Brophy

I thank the Deputy for raising this matter as it provides me with an opportunity to clarify the position in relation to the Department of Education and Youth’s plans for upgrading school buildings, including CBS, New Ross, County Wexford. As the Deputy is aware, the school had an enrolment in 2024 of 413 pupils. This represents an increase of 4% in the past five years. The Department approved significant capital funding for the school under the additional school accommodation scheme in 2019. The approved project was for the provision of four general classrooms, one special education tuition room, one DCG room and one home economics room. This project was devolved to the school authorities for delivery and the project is currently at tender stage.

The Department’s planning and building unit also received an application, in June 2017, from the school seeking capital funding for the provision of a PE hall. The school authority was informed in writing that it was not possible to consider the application at that time. However, approval was given to the school authorities in 2022 to include funding for master-planning the future build of a PE hall in conjunction with the 2019 project.

Since 2020, the Department has invested more than €6 billion in schools throughout the country, involving the completion of more than 1,375 school building projects. Between projects currently under construction and projects moving to construction in the coming months, investments by the Department of Education and Youth are adding more than 610,000 sq. m of new and modernised capacity to our school estate. This is a record level of investment in school buildings. It will expand the number of school places, significantly increase provision for special education and upgrade and modernise our school infrastructure. The impact of this will be felt in communities across the country.

The programme for Government recognises the importance of strong capital investment in the school building programme and supporting this with enhanced allocations through the NDP process. A future strengthened focus on refurbishment of existing school stock will have different strands and will include a PE build and modernisation programme which will enable students in post-primary schools to have access to appropriate facilities to support PE provision, particularly in the context of the roll-out of PE as a leaving certificate subject. Enhanced and modernised PE facilities will also provide important amenities for local communities. However, the main focus of the Department’s capital funding over the past decade and for the coming period is on the provision of critical additional capacity to cater for changing demographics and children with special educational needs. The Department manages the overall school building programme, ensuring that areas under the greatest pressure for additional school places are prioritised. This reflects the Department’s fundamental objective of ensuring the availability of a school place for every child.

Deputy George Lawlor

I thank the Minister of State for his response. However, it is quite disappointing to discover that in this day and age, considering issues of mental health, well-being and the importance of physical activity, a PE hall does not appear to be on the agenda for this school. This is the only secondary school in County Wexford that does not have a PE hall or a gymnasium. The school is expected to operate with below-substandard facilities, yet the response is that it is not a priority. We hear talk day in, day out that the provision of facilities for physical activity to improve the well-being and mental health of people is to the forefront. Here we have a situation where a DEIS school which has an enrolment of 413 students is expected to operate in what is, in effect, a large classroom. It is expected to operate in substandard conditions at a time when we are talking about making PE a central component of the leaving certificate. It makes no sense whatsoever.

I appreciate that the Minister of State is here today on behalf of the Minister for Education and Youth. I ask him to bring this back to the Minister, Deputy McEntee, and emphasise the importance of this issue for the students, parents and teachers of this school. They are battling and running up a hill trying to provide facilities that are available tenfold in other schools in the immediate area. This school deserves recognition and support from the Government and the Department of Education and Youth. The Department is not known for being hasty, as the Minister of State well knows, when it comes to the provision of facilities. This is an urgent request from the pupils, teachers and families of those who attend CBS New Ross. I ask that this be brought to the Minister for her urgent attention.

Deputy Colm Brophy

I take the Deputy's remarks on board and will bring the issue to the attention of the Minister. As I outlined in my earlier contribution, a range of projects are being delivered across the school area. The priority is for the Department to ensure that there are places available for every student for the next school year. In the context of that and the points the Deputy has made, I will bring his views back to the Minister and make sure she is aware of them.

Housing Schemes

Deputy Pádraig O'Sullivan

This has been an issue for many of us across the House over the past couple of months. It has been flagged repeatedly by Government TDs as well as Opposition TDs. I would like to specifically talk about Cork city and county. Some 33 families in Cork city and around the same number in Cork county are currently in limbo. They are unsure what is happening with their applications for the tenant in situ scheme. I have seen the various pieces of correspondence between Departments and the local authorities over the past eight months.

Having read that correspondence it was quite clear to me that there was permission for the local authorities to exceed their initial allocations by up to 50%. Both Cork City Council and Cork County Council have taken advantage of that and tried to progress additional applications for the tenant in situ scheme. I understand why the Department of housing and the Department of public expenditure might have concerns about the way the scheme is being utilised by some local authorities, which were perhaps covering up for their own shortcomings in other areas of housing delivery and used the scheme to get out of the fix in which they found themselves. However, I can safely say that was not the case in either Cork City Council or Cork County Council, where the scheme was utilised in the spirit in which it was intended, such as cases of families in danger of becoming homeless and going into emergency accommodation. Cork City Council and Cork County Council are, unfortunately, being punished because every local authority in the country has been tarred with the one brush. If the scheme is to be tightened up I would prefer that to be focused on the local authorities that are not doing their job and that are letting the side down, rather than punishing local authorities like Cork City Council and Cork County Council. By any metric - be it social housing delivery, affordable housing delivery or the delivery of private homes - both Cork City Council and Cork County Council have delivered. That is patently clear from the available figures.

I am deeply disappointed because, like all Deputies here, I am dealing with people in clinics weekly, many of whom are on the tenant in situ scheme and waiting for it to be unpaused, which is essentially what has happened in both Cork City Council and Cork County Council. The sale of approximately 30 properties is currently paused in both local authorities. It is only a matter of time before the landlords get fed up and enforce the eviction notices. More than likely, the properties will be sold privately and the tenants will have to enter emergency accommodation. We must get our act together in the coming weeks. I have spoken to the Taoiseach, the Minister for housing and the Minister for public expenditure about this and I believe a resolution is on the way, but while we wait for it to be introduced I fear that more families will not avail of the scheme and more local authorities will not be able to draw down funds for the scheme, which is unfortunately likely to lead to more families going into emergency accommodation. I would appreciate it if the Minister of State could give me an update on the resumption of the scheme, which has effectively been paused in both Cork City Council and Cork County Council.

Deputy Colm Brophy

I thank Deputy O'Sullivan for giving me the opportunity to reply to him on this issue. The Government is providing €325 million in 2025 for local authorities to buy second-hand properties, with a particular focus on the tenant in situ scheme, where tenants in receipt of HAP or RAS receive a notice of termination. While the clear focus of the Government must remain on increasing the supply of new-build social and affordable homes, a targeted social housing acquisition programme has been, and will continue to be, an important part of the policy response.

The social housing acquisitions circular that issued to local authorities recently sets out the revised arrangements for second-hand social housing acquisitions in 2025. Under the revised arrangements for second-hand acquisitions in 2025 local authorities will receive a capital funding allocation for the acquisition of homes for the following priority categories: the tenant in situ scheme; elderly and disabled persons; exits from homelessness; and buy and renew acquisitions that tackle vacancy. The provision of a capital funding allocation will help to promote best practice in obtaining value for money and provide local authorities with the flexibility to respond to needs and priorities locally within the categories of need being prioritised.

Despite coverage to the contrary, the eligibility criteria for the tenant in situ acquisitions in 2025 are not overly restrictive. The guidance is largely the same as what issued in June 2024 and is not substantially different to what was required in 2023. The Department asked local authorities, as it did in previous years, to ensure that they are responding to a valid notice of termination where there is a real risk of homelessness and to examine all options for the ongoing accommodation of the household before progressing as a last resort with an acquisition. The Department also asked that local authorities give priority to families with children, older persons or people with a disability who are at serious risk of homelessness. However, prioritising households should not be interpreted as excluding any household and the final decision on each individual acquisition rests, as it should, with the local authority.

Since the introduction of the tenant in situ scheme in 2023, a significant number of homes have been acquired. In the period 2023 to 2024, more than 3,300 second-hand acquisitions have been completed, of which more than 2,100 have been tenant in situ acquisitions where tenants in receipt of HAP or RAS had received a notice of termination.

The tenant in situ acquisitions programme was introduced by way of Government decision in 2023. The programme for Government commits to the continuation of tenant in situ acquisitions as an option for local authorities. Currently, there is a strong pipeline for second-hand social housing acquisitions, with more than 700 acquisitions in the pipeline. We have assured all local authorities of our continued support for their acquisitions activity.

To the end of April, local authorities have only drawn down €65 million or 20% of the €325 million which has been allocated for second-hand acquisitions in 2025. I again thank Deputy O'Sullivan for raising this issue.

Deputy Pádraig O'Sullivan

I thank the Minister of State. I might pick up on the last point. It is interesting to hear that only 20% of the fund has been drawn down. I know that in the case of both Cork City Council and Cork County Council they have drawn down the full allocation for 2025, or committed to it. If only 20% of the funding has been drawn down, could the reallocation of the funding from other local authorities not be considered if they have not drawn it down? Does the Minister of State have figures for 2024 which show whether the full allocation was drawn down? I am interested in hearing about that.

The Minister of State referred to the merits of the scheme. I do not need to be convinced of how good the scheme is; we all know the scheme works. As he outlined, it has delivered 3,300 second-hand acquisitions. It is a great scheme. I just do not understand why we are barring people from availing of it, which is effectively what we are doing. Whether we like to admit it here or not, we are doing that because a commitment was given to local authorities to go beyond the 2024 allocation and proactive local authorities such as Cork City Council and Cork County Council did exactly that. They used the scheme to its fullest extent and then they went beyond it, as per the circular, and exceeded their targets by 50%. They were permitted to do that. At that time, nobody flagged with either local authority in Cork or elsewhere that the money would affect their budget in 2025, which is what has happened. The logical step is to increase the budget for 2025 to allow people to engage with the scheme and to allow local authorities to start acquiring more properties. To be fair to her, the director of services in Cork City Council very rarely makes a public comment about Government decisions like this, but she said this would have a significant effect on the prevention of homelessness in Cork. That is the reality of what we are doing.

Deputy Colm Brophy

I again thank Deputy O'Sullivan for his contribution. I appreciate the sincerity with which he has raised this issue. We are committed to responding positively to it. My understanding is that Cork City Council's allocation for second-hand acquisitions in 2025 is €20 million. At the end of April, it had drawn down €6.9 million or 34% of its allocation. The Cork County Council allocation for second-hand acquisitions in 2025 is €15 million and at the end of April it had drawn down €500,000 or 3% of its allocation.

The Government decision of 4 March 2025 decided on a total of €325 million for second-hand social housing acquisitions in 2025. The approach to funding allocations was a change from the approach taken in 2023 and 2024, when local authorities were issued with a guide number of acquisitions. The intent is to allow local authorities negotiate the acquisition costs with vendors and landlords and to achieve the best value for money. Each local authority has now received its individual allocation, with a total allocation of €35 million for Cork City Council and Cork County Council for 2025.

For acquisitions where there is a tenant in situ, local authorities will assess the options available in each case and decide on the appropriate action. Prioritising vulnerable households for support under the scheme is important, but it does not mean excluding others. It will be a matter for local authorities to respond to local needs. I assure the Deputy that the Department of housing will continue to engage with local authorities on any challenges that have emerged, so as to ensure the tenant in situ acquisitions remain an option in 2025 where other solutions cannot be found.

Dáil Éireann debate - Thursday, 22 May 2025