Ms Margaret Gorman:

In regard to Deputy McConalogue's questions on the impact on school finances, based on our survey of November last, we estimate that at this point in time approximately 66% of schools will be in deficit.

Going back to the Heckman equation, which is a world renowned equation, the more we put in earlier in a child's life, the greater the resource for the child and society at large but we seem to do that exact oppose. The OECD report, Education at a Glance, confirms that. We put our main resources into third level, we scale back at post-primary level and primary level seems to be the poor relation. That has always been the case. Even when the capitation grant was €200 - it will ultimately be reduced to €176 per pupil, which is an enormous reduction - we said it was insufficient to properly fund schools. We hear daily from schools in financial crisis.

As has already been said, the removal of the minor works grant has, in effect, meant that a school with 100 pupils, for example, is down approximately €10,000, which is approximately one quarter of its funding. Any organisation down one quarter of its funding with increased costs would obviously face a very difficult situation.

Deputy McConalogue also raised issues about special needs and resource teaching. We referred to it in our submission and we are very concerned that the reversal in regard to the resource teaching allocation is not used against primary schools in that they must now all suffer an increase in their pupil-teacher ratios. That would be a matter of the utmost concern. We must also remember that the resource hours for pupils with special educational needs who have the most acute difficulties and who in the most severe cases will only get an additional five hours questions have already been reduced by 15%. They have still lost that 15%.

We are running a summer course for principals this week and one of the things we are hearing very loudly - as well the issues of people under enormous strain - is that the notification last week was the last straw. Schools are closed so how are they supposed to contact other schools in order to put in place the provision for next year?

A question was raised in regard to VAT notification. We have made numerous representations on that issue, in particular on the obligations on schools in regard to relevant contracts tax, RCT.