Norma Foley (Kerry, Fianna Fail) | Oireachtas source

I thank the Cathaoirleach Gníomhach. I begin by wishing the Chairman a speedy recovery.

I am pleased to be here this morning together with officials from my Department. I thank the committee for the opportunity to speak with its members and ask for their consideration of the Department's Supplementary Estimates for 2024. Following approval by the Government, the Department is seeking a net Supplementary Estimate of €960 million for the 2024 year.

This Supplementary Estimate includes additional funding to provide for delivery of required school accommodation, including mainstream classes, special class and special school places to meet September 2024 needs and, as announced earlier this year, bringing close to 90 projects, including a further 28 new school buildings, to construction during 2024 and early 2025 as part of our overall forward planning and to provide for other capital investment in schools. It also includes continued services that are needed for the additional Ukrainian students in the school system; cost-of-living measures that were agreed during the year that will be paid out in 2024; and other costs in the demand-led service areas of school payrolls, pensions and transport, including the full provision for public sector pay deal costs arising in 2024.

I will outline the key elements for the information of the committee. Current expenditure funding includes additional grant funding to schools of €50 million to meet the costs of inflation and support the roll-out of key initiatives. There were additional pay requirements in the school sector of €363 million. This includes resources for additional staff allocated to schools due to increased school enrolments, which also includes additional enrolments as a result of the ongoing crisis in Ukraine, including extra English as an additional language teachers, mainstream and special needs teachers and special needs assistants. Costs relating to public sector pay and pension deals approved by Government in February 2024 were not fully provided for in the original funding allocations for this year, given the timing of an agreement. There is also a range of other pay-related pressures arising from higher enrolments.

Some of the €129 million of additional school transport funding is required for a range of initiatives and additional services introduced during 2024. This includes a cost-of-living measure to maintain reduced school transport fees and the provision of additional services due to an increased number of pupils seeking places on school buses. There were also additional transport services and routes needed for Ukrainian pupils and other expenditure pressures across the existing school transport services. An additional €21 million of funding is required to cover the loss of income and additional costs in the State Examinations Commission. The loss of income relates to the budget 2025 decision made to again waive the entry fees for junior and senior cycle students sitting their exams in 2025. The additional costs were incurred to ensure 2024 State examination results were available to students in a timely manner. There is also a €3 million requirement to fund the commencement of a shared Island project on educational underachievement and some additional legal costs.

A significant additional capital allocation of €517 million is provided for in this Supplementary Estimate. This is required to meet significant budgetary pressure which is primarily attributed to the continued delivery of an ambitious school building programme in 2024 and continuing into 2025. The funding represents an increase of approximately 15% on our 2023 outturn and is supporting the continued roll-out of urgently needed school building projects. Our school building programme has a strong focus on addressing demand arising from demographics at post-primary level, as well as the requirement for additional school places due to the expansion of housing in parts of the country.

The provision of accommodation for children with special education needs is also at the heart of our priorities and a core driver of investment. We are greatly expanding the network of special classes throughout the country. We have also opened four new special schools for the current school year, with five more announced for next year. There is an additional funding allowance for the expansion of school places to significantly increase provision for special education and upgrading and modernising our school infrastructure. Furthermore, schools act as a key enabler for sustainable housing development and, through access to facilities, play a vital role in supporting the social fabric of new and growing communities beyond the provision of education.

As announced earlier in the year, close to 90 projects, including a further 28 new school buildings, are being authorised to proceed to construction during 2024 and early 2025. In total, approximately €800 million will be invested in these projects under the Department’s large-scale capital programme and additional accommodation scheme. This is all part of our forward planning to meet future needs. The additional capital funding is also being provided to support digital learning in schools and minor building works through grants paid to schools in 2024 and for EU financed REPowerEU green initiatives.

An estimated additional €128 million in appropriations-in-aid income in excess of the amount provided for in the original Revised Estimates Volume allocations is included in the Supplementary Estimate and will partly offset the expenditure pressures I have outlined. The bulk of this additional income is represented by one-off EU moneys from its REACT programme that allows for the reimbursement of some of the Covid-related supports provided to schools previously. There are also some increases to the pension contributions received due to additional numbers being employed in our schools.

I am happy to discuss these issues in more detail. I commend the Supplementary Estimate to the committee.