Fine Gael TD John Deasy has told the Dáil that the new Ireland Strategic Investment Fund must be aimed at areas worst affected by, not just the recession, but “our evolving two-tier recovery.”

During statements on the Government’s priorities for the year ahead, the Waterford deputy warned that “undue political influence” mustn’t prevent an objective share-out of the €6.8billion stimulus package. “It cannot end up being a political pie, gobbled up by insecure politicians with one eye on a general election,” he said.

Mr Deasy declared that after three years in office, the Government’s strategy to spread jobs to the regions clearly “has not worked ... I have concluded that as long as the headline figures for the country as a whole are positive, the virtual non-existence of regional investment is considered irrelevant. There is almost a sense of resignation about the fact that so much investment – 82% – goes to Cork, Dublin and Galway and so little goes elsewhere.” 

Of the 2014 Action Plan for Jobs, other than plans for a few advance manufacturing facilities (one in Waterford), he’d “heard it all before.”

In Waterford, where the unemployment rate remains at around 20%, “a downward trend is still being experienced,” he said. Any improvement in the Live Register figures needed to be seen in the context of the huge number of jobs hemorrhaged locally over the last six years, including multiple business and industry closures in the past 12 months.

Mr Deasy put forward “two specific suggestions” to address the growing geographical disparity in terms of job creation. The first being the new strategic fund, which, matched with private sector investment, could provide a national economic injection of €12–15bn. 

“This is the only show in town. It is the only stimulus package the country will see for the next five or six years,” he said, insisting it “must be predominantly and proportionately invested in those parts of the country which have seen the least investment over the last ten to 15 years.”

Given the key aim of “isolating the fund from political interference”, the FG deputy insisted that policy and legislation “must guard against base political tendencies influencing how the stimulus package is divided up.”

Though focusing it on deprived regions is “reasonable logic”, he predicted it “will not make sense to some politicians who see an election on the horizon and a potential lump of money for their own constituencies.”

On the other hand, targeting areas where the economic indicators of decline are at their highest should make sense “to any government which is interested in balanced regional development.”
Mr Deasy sees the new Regional Aid guidelines for 2014–20, which are due to be published by the European Commission in July, as the ideal framework for distributing the ISIF investment.

If moves to direct aid towards those areas that need it most are not considered in forthcoming legislation governing the fund, “I will attempt to amend the Bill at the very least to highlight the scenario I have just painted,” he said.

Given there are “people at the most senior level in the IDA who believe the policy designed to attract foreign direct investment evenly across the State has failed miserably and must be re-engineered immediately”, Deputy Deasy’s second solution focused on the recent authorisation of 35 additional IDA staff. 

With Waterford a notable, negative exception in terms of net IDA job creation among Irish cities last year, he looked at where the agency’s existing staff are based — including five in Waterford, 36 in Athlone, and 148 in Dublin.

Deploying the new staff coming on stream into those parts worst affected by the recession and which have seen the least amount of FDI, would be “a good start” in terms of prioritising recovery in the country as a whole, he said.

Additional rates reliefs have been included in the new Local Government Bill after Minister Phil Hogan accepted proposals by Waterford Fine Gael TD John Deasy and Labour Deputy for Dublin Mid West, Robert Dowds.

The Minister was thanked for taking the thrust of two joint-amendments they put forward and incorporating them into the new legislation as it passed through the Dáil on Wednesday. Deputy Deasy said Mr Hogan had been ‘as good as his word’ when it came to reducing commercial rate levels in Waterford.

The first change the TDs sought and secured was in respect of a planned rates refund mechanism for vacant premises. In taking their arguments on board, the Minister is to give discretion to elected councillors right across the country to allow owner/occupiers who can’t secure tenants a full rates rebate – not a maximum of 50% as the Bill originally proposed (and which is currently applied in Dublin, Cork and Limerick).

Deputy Deasy said: “The Minister accepted there are areas where there is little or no demand for commercial premises. Councillors will now have the authority to tailor vacancy refunds – from 100% down to zero – to best suit the economic circumstances in particular counties or specific municipal districts.

“While I understand how some local authority officials would have seen a need to have a deterrent to people holding onto sites, to have a blanket 50% rebate would have been madness in this economic climate.

“There is a two-tier economy in this country. In some areas, like my own homeplace of Dungarvan, it’s not a matter of choice. In many parts of Ireland owners simply can’t get tenants for commercial premises. And enabling this to be implemented on a district level will allow for the differences between rural and urban areas.”

The Deputies – who are colleagues on the Dáil Public Accounts Committee – also proposed an amendment dealing with the issue of outstanding rates charges being passed on to new occupiers; something the Minister was anxious about as well.

“He accepted that maintaining the status quo could give rise to an unfair burden on businesses seeking to expand, relocate or start up. In some cases the arrears on a particular premises were holding up the sale,” Mr Deasy said.

“In dealing with and introducing a reasonable variation of our amendment, he is giving city and county managers the authority to write off arrears owed by previous occupiers – meaning property that may otherwise have remained vacant can now be re-let.”

Deputy Deasy said the Minister had lived up to his word in their interactions on commercial rates over the past year. “You consistently gave assurances that you would try to bring the ARV to the lowest level in Waterford – the Dungarvan level – and you did that.

“I’d like to thank you for following through on what you said you would do... I was keeping a close eye on this situation for the past year. But you were consistent with regard to the issue, and it’s turned out to be, in the case of the city, a really excellent result when you consider ratepayers there received a reduction of 20%.”

While county rates were reduced by 5%, some people felt it unfair that the Dungarvan ARV level should remain as is. But “for the most part the feedback I’ve been getting is that they expected it to go up,” Mr Deasy said.

He told Minister Hogan: “I think it’s worth acknowledging the direction that you gave. And everyone’s taking credit for it in Waterford – councillors, officials – but you were consistent”.

This included putting more money into Waterford’s Local Government Fund allocation with a direction that it be used to reduce the rates level locally.

From the floor, Deputy Deasy also said he wanted to acknowledge “the work of Waterford City Chamber of Commerce – Nora Widger and Nick Donnelly – and Dungarvan & West Waterford Chamber of Commerce – Jenny Beresford and Collette Bannon – on this issue.”

Environment Minister Phil Hogan has intimated to John Deasy in the Dáil that business rates could be harmonised “downwards” after Waterford’s local authorities amalgamate next year.

As the new Local Government Bill passed report stage, Deputy Deasy has again argued for changes to be incorporated into the new legislation.

Referring to the harmonisation of rates across councils set to merge in 2014, the Minister suggested to Deputy Deasy that a lowering of rates in Waterford and elsewhere could occur.

“If local authorities are in a position financially to harmonise their rates in one go… we will do so,” the Minister said. “This is about harmonisation of the systems in place downwards, not upwards.

“At the end of the day, it is a matter for the elected members, who have a reserved function on this matter at budget time, to ensure that is the case,” Mr Hogan added.“Any savings that will accrue from the reforms we are undertaking should not impose any additional cost on business.”

Deputy Deasy directly raised the harmonisation issue with Mr Hogan in the Dáil last May, having first addressed it at the Public Accounts Committee a year ago when he pointed to the large variances in annual rateable valuations between the merging councils in Waterford City (€66.22) and County (€69.92), and Dungarvan Town Council (€60.37).

Minister Hogan also indicated he is willing to accept an amendment tabled by the Waterford Fine Gael TD and Dublin Labour deputy Robert Dowds to give discretion to councillors to grant either a full or 50% rebate on rates to owners of vacant business premises. The Bill originally proposed a 50% concession across councils countrywide, “which would be a mistake,” Mr Deasy said.

Another proposal that the Minister is considering is to allow city and county managers waive historical arrears tacked onto a new sale or leasehold.

Mr Hogan agreed with Deputy Dowds at committee stage that incoming businesses shouldn’t be burdened with a legacy debt not of their making, and “I’ve asked the legal people to draft up an appropriate amendment that hits the spirit of what you want.”

A third Deasy/Dowds proposal, namely, a transitional relief scheme that would spread out revaluation increases by rating authorities over three years, is being “constructively” considered by Government officials.

Fine Gael TD John Deasy and Labour Deputy Robert Dowds – both members of the Dáil Public Accounts Committee – are working on proposed changes to new legislation which would allow commercial rates increases to be spread out over a number of years, and alter the planned rates refund mechanism for vacant premises.
The Local Government Bill 2013 was published by Environment Minister Phil Hogan last week, setting down a legislative framework for the new local authority structures being introduced next summer.
One aspect of the Bill relates to how councils deal with commercial rates. However, Deputies Deasy and Dowds – a TD for Dublin Mid-West – are concerned that it doesn‟t take the current Valuation Office review of rental values, nor local economic circumstances, into account.
Consequently, they are planning to submit joint amendments to the Bill when it goes to report stage in the Dáil in the coming weeks.

Mr Deasy said: “For the past number of months I've been highlighting the potentially crippling impact the current revaluation process underway in Waterford – and parts of Dublin – would have. It particularly affects the retail sector, where most businesses locally are facing a significant upward adjustment of their rates bill; a hike of up to 300% in some cases.”
While the Bill provides for phasing in the effects of rates “harmonisation” – i.e. where different local authority areas with different Annual Rateable Valuations will be merged – the proposed legislation doesn't factor in the damaging impact a sudden revaluation hike would have.
Deputy Dowds said: “Even though the Valuation Amendment Bill has been introduced in the Oireachtas and provides for a new system of self-assessment of commercial rates, there needs to be a provision which allows for regular reviews on a statutory basis so that businesses can budget accordingly.”
Mr Deasy added: “What we are looking at is a way of giving councils powers whereby the elected members can decide to allow businesses whose rates bill is being increased as a result of revaluation to spread the 'hit' over a number of years.
“The Bill as published would abolish the refund regime entitling owners of vacant commercial properties to a 100% refund of their commercial rates liability in certain parts of the country. In many cases businesses would not be able to afford that refund regime changing in any respect.
“Once the Minister has given his response in this week‟s second stage debate, we will consider how best amendments might be framed to ease the burden on businesses as much as possible.”

Deputy John Deasy says the Government’s decision to release funding to allow for a limited but vital runway extension at Waterford Airport is a “very significant” breakthrough.

Having been working to secure this investment for a number of months, dealing directly with Transport Minister Leo Varadkar, the Waterford Fine Gael TD had argued that a relatively modest outlay by the state could yield major benefits for the region’s economy.

The same capital expenditure grant of €405,000 was originally approved in late 2011 only to be frozen after Aer Arann’s decision to pull out of Waterford from January this year. Following a meeting with the airport board late last month, the Minister – despite the instability within the aviation industry – has now given Waterford Co Council the go-ahead to CPO the required 18 acres of land.

With the agreement being dependent on a contribution from a number of companies, along with local authorities, in the region, “In committing this funding I think the Department feels relatively happy with the private sector involvement in meeting the balance of the project cost, including laying the new stretch of runway,” Deputy Deasy says. 

“There’s also an acknowledgement that the people who have worked at Waterford Airport for the past four years have used every cent to try to pave the way for additional expansion to bring in different kinds of jet aircraft, including small jets, and to connect to London in particular.”

The additional lands are also needed to comply with international safety standards, including the provision of a runway end safety area. The 150m runway extension itself will, Deputy Deasy expects, “greatly improve the prospects of attracting a carrier to operate the Waterford–Luton service.”

Applauding the airport’s proactive approach despite the challenges it has faced in recent times, Mr Deasy added: “I don’t think there’s anyone in Waterford or the South East who doesn’t realise how critical this piece of infrastructure is for the region, for the city, for the county – an area that is suffering very badly.

“Psychologically it’s very important that we move to ensure that the airport is viable going into the next five or 10 years at the very least. Direct air access to our biggest trading partner is extremely important, and Waterford Airport supports considerable direct and indirect employment – not least in terms of tourism, which accounted for over half the inbound traffic from the Luton route.”

Now, after what’s been a lengthy process of negotiation, Deputy Deasy hopes things can progress swiftly, with a CPO operative and the contracts already agreed. Though the transfer of lands to the Airport will require a Section 183 Resolution by Co Councillors, officials believe this will not be a problem and that work can commence within a matter of months.

The Fine Gael Parliamentary Party has unanimously supported a motion by Waterford’s John Deasy requesting that the Department of Public Expenditure & Reform conduct an analysis of the potential impact substantial increases in commercial rates may have on struggling businesses.

The proposal, tabled in the context of the ongoing revaluation process, was passed at Wednesday night’s (July 3) meeting of TDs and Senators in Leinster House.

Deputy Deasy, who has alerted cabinet colleagues to the precarious position on the ground, says the message to Minister Brendan Howlin couldn’t be clearer – and insists the prospect of pushing businesses beyond breaking point can’t be ignored any longer by Government.

“We can’t sit back and allow businesses go to the wall because of rateable valuation increases introduced on our watch,” Mr Deasy said afterwards.

“There are countless examples of how this is affecting retailers in my home town of Dungarvan – a situation mirrored elsewhere in Waterford, not least in the city.

“You’re talking about petrol stations needing an annual turnover of around €1.3 million just to remain viable – or a newsagent needing to put €1.2m through the tills just to cover its €50,000 rates bill. It’s simply unsustainable.”

Deputy Deasy added: “There’s new legislation due to come before the Dáil later this year that will pave the way for self-assessment and hopefully a fairer system that reflects business realities. I’ve already called on the Taoiseach to have the Valuation (Amendment) Bill, 2012 expedited through the Oireachtas.

“In the meantime, given the knock-on effects this revaluation process will have in terms of a lower tax take, and unemployment benefit payments, in my view the Department is now obliged to examine the consequences of the current valuation review at both a micro and macro level.”

The Oireachtas committee on Jobs, Enterprise and Innovation has been told by Government TD John Deasy that flexibility must be found within transport budgets to finally fund an extension of the runway at Waterford Airport.

During a discussion of the South-East Economic Development Strategy Report, the Waterford Deputy stressed “It is a critical time now for the airport” – describing the fact that its manager Graham Doyle is leaving to become an assistant secretary in the Department of Transport, Tourism and Sport as “significant” and “bad news, in my opinion.”

He observed that the airport has “three options”, ranging in cost from €1.25 million to €7m, to the €10m it would cost to land 737s. “Realistically” we are talking about the cheapest, Mr Deasy said, equating it to “the cost of a three-bedroom semi-detached house in parts of this city a few years ago. It is not a lot of money.

“As far as the Department is concerned, the case is being made, successfully, that it is worth investing in the airport.” To bring in jet aircraft and attract a London carrier, “The people who have worked there for the past four years have used every penny to try to lay the ground at the airport for additional expansion at the north and south ends of the runway.”

Mr Deasy added, “I am having a discussion on the matter with the Minister… If we are all of the opinion that the airport is a key piece of infrastructure then we must examine the entirety of the transport budget and ask ourselves one question, namely, whether we are prioritising what we should prioritise?

“In that context, the answer is ‘No’.… My point is that budgets within the Department are not flexible enough,” he said.

Deputy Deasy insisted: “We have to have an urgent discussion within the Department,” suggesting, for example, that “It may not be wise for us to continue spending millions of euro on something like Smarter Travel when a vital piece of infrastructure for the southeast is not being funded sufficiently, and it does not involve a lot of money.”

The committee heard from, among others, Waterford City Manager Michael Walsh, Waterford Chamber President Nora Widger, and Senan Cooke of Dunhill Rural Enterprises. About the strategy, which is nearing completion, Mr Deasy thanked Senator David Cullinane “for his work on putting all of this together. It is valuable.”

>> For the transcript of the full committee discussion, click here (pages 3-12)

With the Department of Education confirming there will be no change to the means test for students starting third-level in September, Waterford Deputy John Deasy says the notion of imputing income from property “must be dumped for good”, and not simply deferred.

“It makes no sense to talk about including ‘non-productive’ capital assets such as farm land and business premises when assessing a family’s annual income. There is no relationship between the value of land and the income derived from it,” the Fine Gael TD insisted.

Recognising that the proposals would have a disproportionate effect in the dairying heartland that is Waterford and the South East, Mr Deasy’s hardline stance was applauded by IFA President John Bryan at the height of the controversy in February.

The Waterford deputy warned that the issue had the potential to seriously damage the coalition, and called on senior figures within his own party to stop Mr Quinn’s idea in its tracks.

Other rural deputies rowed in and the Labour plan was held up before it reached cabinet. “It’s time to put an end this for once and for all,” Deputy Deasy says.

Fine Gael TD John Deasy says senior consultants at Ardkeen have questions to answer as to why, having spearheaded a public campaign for the retention of the South East Hospital Group, they dramatically changed tack mid-campaign and entered into negotiations that ultimately led to Waterford being linked to Cork University Hospital.

Last November, a week before they met with organisers of what became the ‘Save Waterford’ campaign, Waterford Today published a front-page story in which Deputy Deasy warned it was “time people began questioning the individuals who are responsible for representing WRH.”

He did so having arranged meetings between specialists at Ardkeen, senior HSE officials, and government TDs from the region – only to find “the performance of these senior consultants was underwhelming to say the least.

“They are the ones who needed to make the argument based on medical best practice and they failed miserably. In my opinion others from the regional hospital need to step in immediately to rescue this situation before it’s too late,” he said at the time.

Now, with the Higgins Report’s recommendations for six new groupings adopted by Government, he wants to know what prompted the consultants to do a u-turn.

“For six months the emphasis was on keeping the South East Hospital Group together, with the priorities being patient safety and the future of Waterford Regional Hospital. We had reached agreement politically for that to happen. But for some reason the consultants in Ardkeen decided after six months of campaigning that it wasn’t the best option.

“They need to explain why not, particularly given that the agreement reached to keep the South East Hospital Group together incorporated almost every element of the deal finally reached with regard to Cork,” Mr Deasy said.

Deputy John Deasy says Waterford Airport’s importance as a Search and Rescue (SAR) base has been underlined by call-out figures over the past three years — particularly night-time helicopter missions.

The Fine Gael TD cited the number of emergencies the crew has been tasked to over the 2010–2012 period as clear evidence of the facility’s critical presence on the Southeast and South coast. It was the second busiest base after Shannon.

It’s three years since a cabinet proposal to limit and reduce the Irish Coast Guard 24-hour SAR operation at Waterford to daylight hours only, resulted in a public outcry — forcing a row-back by the then Minister.

The case for maintaining round-the-clock cover at Waterford has been cemented since the aborted move to cut back the helicopter service to a 12-hour one was aired in March 2010.

The value of the Killowen facility was confirmed in figures gleaned from the Department of Transport in reply to a recent Dáil question by Mr Deasy (see tables below).

“The recommendation made three years ago was based on a very low 2008 call-out rate for the Waterford helicopter. It’s clear now that that figure was an aberration. The call-out statistics since have shown that had cover been curtailed it would have been a mistake — and it would have probably cost lives,” Mr Deasy says.

He noted that call-outs have been fairly evenly spread between the four SAR bases around the coastline, “indicating that Waterford as a location, like the others, has been pretty much spot on”, covering an area stretching from south Wicklow through to Glandore and 50 miles southwards.

The service has been run on a 24/7 basis since 2002, responding to well over 1,000 taskings and saving many lives. Indeed, while filming for the RTÉ series ‘Rescue 117’ in 2010, the Waterford crew conducted 18 separate rescue missions on camera.

Mr Deasy concluded: “The numbers prove a 24/7 emergency response from Waterford is essential and that the SAR helicopter must remain at the regional airport.”