Richard Bruton (Dublin Bay North, Fine Gael) | Oireachtas source

I thank the Chairman and the committee for accommodating us in the taking of the Supplementary Estimate. I am seeking an additional €136 million, of which €100 million is capital expenditure and €36 million is current expenditure. As members can see, some of the subheads show savings, while others show increases.

The original allocation for primary and post-primary capital expenditure was €427 million. An additional allocation of €100 million was recently sanctioned by the Minister for Public Expenditure and Reform to facilitate the delivery of further large projects and the payment of the minor works scheme grants in 2016-17 to primary schools.

We will complete 48 major projects on the capital side and we have a strong pipeline of work ahead. As members will be aware, a tranche of new builds was approved in April and a further tranche was approved in October. This money allows us to continue this pipeline of work, which is driven by substantial pressure on school places. We are currently providing funding for approximately 20,000 additional school places per annum. The strong and beneficial population growth we are experiencing is exerting significant pressure on schools. The population bulge, which continues at primary level, is now moving into secondary level. For this reason, the balance of projects is moving more towards secondary level, which tends to involve larger, more complex buildings.

The other element is an increase of €37 million being sought for increased superannuation payments in 2016 in respect of teaching and non-teaching staff in certain first and second-level schools. This additional sum will cover the additional lump sum and related costs of a projected 488 extra retirements in 2016 above the original estimate. A Supplementary Estimate of €11 million is being sought for increased superannuation payments in respect of institutes of technology staff in 2016. This extra allocation will cover the additional lump sum and related costs of 59 more retirements in 2016 than originally estimated. It is difficult to forecast the scale of retirements from year to year in the educational sector.

On appropriations-in-aid, an estimated shortfall of €18 million is being factored into the 2016 Supplementary Estimate due to an overestimation of the level of receipts to be brought to account in 2016. The 2016 allocation in the Revised Estimates Volume provided for overall estimated receipts of €505 million to be brought into account. However, it is very difficult to accurately forecast the exact impact of teacher retirements and increasing teacher numbers on the level of superannuation contributions payable in a given year. The impact of previously announced reductions in the rate of pension related deductions adds to this difficulty.

There are also expected to be savings on a number of subheads, which offset the total amount required in the Supplementary Estimate. Estimated savings on primary teacher salaries of €24 million are being projected. These savings arise mainly as a result of lower than anticipated substitution costs, which are difficult to forecast owing to the complexities associated with estimating them. There are three individual substitution rates and, depending on the nature of the absence being covered, a personal rate may be paid. The increased number of teachers retiring has also contributed to this saving as those retiring have usually reached the higher points in the incremental salary scale but are generally replaced by new teachers who are starting at the lower end of the scale.

To address grants to schools, education and training boards and other institutions, my Department's budget for 2016 included provision to fund the implementation of an arbitrator's recommendation for pay increases for grant funded school secretaries and caretakers. The first phase of the multi-annual pay increase under the arbitration process came into effect from 1 January 2016 and the full amount for this payment was provided in the subhead for this year, leading to savings of €6 million in 2016. The full funding will be needed in 2017 and beyond for future phases of the arbitrator's recommendations.