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

The Chairman raised a number of issues. As I understand it, rent paid to another school is met from the normal capitation with which schools are provided. There is no arrangement whereby schools submit applications for extra funding based on rising rents. There is a capitation scheme.

The minor works grant was, I understand, introduced a number of years ago to avoid individual applications for smaller works, such as replacing windows and so on. The system was unwieldy and required individual applications. It was not intended to meet heating needs. It is for minor capital works and comes from the capital budget.

In response to Deputy McLoughlin, the figure is €5,500 per school, plus €18.50 per pupil. It is weighted more towards smaller schools. Every school receives a certain amount. That has been the traditional position. The reality is that we are running really hard with our capital budget just to keep up with the population bulge. Each year we are now providing about 15,000 new school places and 5,000 replacement places. That has reflected a population bulge going through primary and now secondary schools. We have had to prioritise that. The minor works grants and other schemes have tended to involve residual amounts of money.

A case can be made for establishing the minor works grant on a more permanent basis. In terms of the medium-term capital plans, I would strongly argue for that so there is more certainty for schools about what is coming their way. At this stage it is competing for scarce capital money with new builds. In anticipation of the level of new build next year, we do not see that the 2018 budget will be able to provide €29 million next year and still meet commitment to building projects which are underway. We are trying to manage the available resources.

The point about prefabs is well made, but the reality is that if we approve a new school for opening under a constrained capital budget we will not build a 16 class school if only one stream is coming in. There tends to be prefabs for a number of years and the build is then stitched through thereafter. That is why an extra amount has been allocated. A number of schools have projects in the pipeline and more money is being provided for one reason or another.

I can see the point the Chairman is making on the economics of prefabs. In a capital constrained environment, we have to decide whether we build prefabs at a cost of €11,000 for an 80 sq m construction or build a permanent structure at a cost of €100,000. We can meet the short-term need more quickly and at about one-ninth of the cost of a permanent structure. Places are being provided more quickly. If we need to make sure every child has a place to go to, prefabs are a part of the rational provision of space. In the longer-term, we would like prefabs to be done away with and. I understand a scheme will start in 2019 to systematically replace prefabs. That is built into the capital budget to 2021. There will always be an element of meeting short-term needs with prefabs. They are relatively cheap to provide, but only have a certain life span. We are trying to balance needs.