John Deasy (Waterford, Fine Gael) | Oireachtas source

Mr. Ó Foghlú will be glad to hear that I wish to raise just one issue. I believe Deputy Dowds touched upon the costs and benefits of prefabs as opposed to permanent builds in schools. In his opening statement Mr. Ó Foghlú explained the capital resource challenges that exist within the Department. I will use the specific example of Kilmacthomas national school in Waterford and will get into the national policy after that. The school needs an extension and the Department insisted that it get quotes for the cost of buying two replacement prefabs. Based on the preferred tender just received, buying the two prefabs and connecting them to the school's heating system would cost €160,000, which is approximately 80% of the cost of a new build - the capital cost estimate for two permanent build classrooms is €200,000.

As Mr. Ó Foghlú will be aware the prefabs have a book life of approximately ten years even though many of us have been in prefabs that are 20 or 25 years old and still in use. I thought the Department had changed its policy direction on the issue. It might be preferable to give the school the €160,000 and let it raise additional money locally. In the case of Kilmacthomas, the architect involved has said that the provision of two prefabs does not represent value for money in the medium or long term and recommends that the school seek to have the proposed prefabs funding reallocated towards a two-year permanent classroom extension and then try to raise the money locally.

I will ask about the national policy and how it has evolved in recent years. Kilmacthomas is a clear example of the cost-benefit question. I want Mr. Ó Foghlú to respond specifically to the example I have raised and consider the option of building permanent classrooms in Kilmacthomas as opposed to providing new prefabs and all the financial issues that surround that school specifically.

On the national issue, my information is that at the height of the boom the previous Government had a policy of renting prefabs in schools as we all know. I believe 715 new rental contracts were agreed in 2007 alone. The average rental cost of a standard 80 sq. m prefab classroom in 2008-09 was €15,000 to €16,000 per annum. That was reduced by April 2012 to €15,000. The expenditure on rental accommodation, including prefabs, has gone from €39 million in 2009 to €29 million in 2012, a reduction of approximately €10 million. As of April 2012, some 580 schools were renting temporary accommodation. The programme for Government contains a commitment to reduce the reliance on rented prefabs in schools. Only 35 new primary school contracts were entered into in 2011 so we have seen the progression, but the example of Kilmacthomas begs the question of how much progression there has been in the case of a school that does not want to face the prospect of having prefabs for another 15 or 20 years.

The difference between permanent build and renting is not great. That is the basis of it.