Mary Hanafin (Dún Laoghaire, Fianna Fail)

I move amendment No. 1:

1. To delete all words after "Dáil Éireann" and substitute the following:

"recognises the major improvements that have been made in improving funding levels for primary schools over recent years including:

an 86% increase in the rate of the standard primary capitation grant since 2001;

an increase of almost 100% in the ancillary services grant since 2001, providing schools with more resources to pay for support staff such as caretakers and secretaries;

improvements announced in the last budget which taken together mean that primary schools are getting €330 per pupil this year to meet their day-to-day running costs — €21 more than they received in 2007;

the payment of enhanced rates of capitation grant in respect of pupils with special educational needs of between €457 and €880 per pupil — an average increase of about 42% since 2006; and

the provision of significantly enhanced levels of funding for schools serving disadvantaged communities under the DEIS Action Plan.

supports the commitments in the five-year Programme for Government to:

increase day-to-day funding for our schools in real terms and double the capitation grant for primary schools by 2012; and

significantly increase the value of grants paid to schools for the employment of support staff such as secretaries and caretakers."

I propose to share time with Deputies Seán Ó Fearghaíl and Áine Brady.

Tá an-áthas orm glacadh leis an deis seo chun a thaispeáint cé chomh dáiríre agus atá an Rialtas faoi airgead a thabhairt don oideachas go ginearálta, agus go háirithe don bhun-leibhéal. The Government remains committed to improving day-to-day funding for primary schools. This is being done as part of our overall investment in education, which has increased significantly in recent years — by more than 70% since 2002 to in excess of €9.3 billion this year. This significant increase of more than €690 million, or 8%, on the funding position, which was achieved in budget 2007, will enable us to consolidate the major service and funding improvements secured in recent years and make further progress in a wide range of areas.

If the motion had not specified the school year within which the capitation grant should be doubled, the Government could have supported the Labour Party as the objective expressed in the text forms part of the programme for Government. It would be irresponsible of Ministers to ignore the changing global economic environment. Members of the public know that careful management of the public finances is necessary to protect prosperity. Although economic growth has slowed, it remains good. The current prudent approach is the best way to ensure funding improvements for our schools can be sustained. While I would love to be in a position to announce a doubling of the capitation grant next year and introduce, in the first year of the Government's term, all the improvements we intend to introduce, in the current economic environment we must make decisions which prioritise across the education sector and throughout Government. Securing an additional €690 million for education was a real achievement and evidence of the Government's continuing commitment to prioritising education.

The Government acknowledges the importance of educating our young citizens, ensuring we have an inclusive society and maintaining the shared values we appreciate so much. We need to ensure young people are prepared for the careers of the future to support the economy.

I would have liked to reduce class sizes this year, as I did in the previous two years. The Department has issued a schedule indicating that teachers will again be allocated on the basis of a pupil-teacher ratio of 27:1. In the past two years, the ratio has declined from 29:1 to 27:1. In addition, almost 1,000 additional teachers will commence employment in our schools in September to meet demographic changes and language and special needs and to work in developing schools. All these factors are placing additional demands on the system. By September we will be more than halfway towards the target of having 4,000 additional teachers in our schools during the lifetime of the Government. There has been no diminution in the Government's commitment to meet all its targets but it is not possible to meet them all this year.

In terms of improvements for schools the €9.3 billion being provided for education this year will enable us to invest almost €600 million in school buildings and bring expenditure on special education to twice the 2004 amount. As Deputies will be aware from widespread discussion of special educational needs, €900 million will be spent on this area this year. The Department's allocation will also enable us to employ approximately 1,500 extra teachers and special needs assistants. In addition, the psychological service will be expanded, the ICT in schools programme implemented and other improvements and advances achieved across the education spectrum, from primary to fourth level.

The programme for Government contains a commitment to provide a further 4,000 primary teachers by 2012. We will be halfway towards achieving this goal in September. As the Department secured substantially greater additional funding than other Departments this year, it will be able to provide an increase in day-to-day funding for schools.

I am aware of the funding pressures facing schools and assure the House that they are taken into account when determining the annual increases in capitation grants. Contrary to some of the comments made, the capitation is paid on current year numbers as the numbers are adjusted in June when the payment is made.

It is because the Government recognises the importance of improved school funding that the programme for Government includes commitments in this area. While we are also committed to doubling the primary capitation grant, this commitment cannot be met in one year. We are also committed to significantly increasing the value of the ancillary services grant used by schools for the employment of support staff such as caretakers and secretaries. These commitments are a direct follow-on from the clear thrust of Government policy in recent years to improve the position of primary schools in particular. In 2008 alone, the Department will pay approximately €167 million to primary schools to meet their day-to-day running costs. Of this figure, which does not include other forms of grant such as minor works grants or the salaries of special needs assistants and teachers, €97 million will be allocated for capitation and €70 million for ancillary services.

The main differences between capitation funding for primary and second level schools is the size of buildings. A primary school generally has one room for each class, whereas one year group consisting of four classes in a secondary level school may break up into six or seven classes for subject choices. Second level schools have technology facilities, home economics rooms, science laboratories and, as such, require much more space. This larger space costs more to insure, heat, light and clean, which is the reason for the traditional gap between primary and secondary level capitation rates. The same number of students requires a much larger building in the latter than in the former.

The improvements announced in the previous budget mean the combined day-to-day funding for primary schools will increase by €21 to €330 per pupil. To view school funding through the narrow lens of one year does not give a full or accurate picture of the scale of improvements. Since 2001, the standard rate of capitation grant has been increased from €95.87 per pupil to €178.58 as of 1 January 2008, an increase of 86%. The value of the ancillary services grant has almost doubled in the same period, from €76.18 to €151.50 per pupil and almost €70 million in ancillary services grants will be paid to primary schools in the coming weeks. Schools received 70% of their 2008 capitation funding last January, with the rest to be paid in June. In 2001, a primary school with 300 pupils was in receipt of less than €52,000 to meet its day-to-day running costs. This year, the same school will receive €100,000, exclusive of salaries for teachers and special needs assistants which are paid by the Department. By any standards, this is a significant improvement in a relatively short period.

Enhanced rates of capitation funding are paid in respect of children with special educational needs who attend special schools or classes attached to mainstream schools. The current rates range from €457 to €880 per pupil, an average increase of about 42% on the rate payable in 2006. This is to recognise that while young people with special needs may be in very small classes they might have to have a good deal of space to be able to accommodate and educate them. I acknowledge that Deputy Gilmore recognised the priority that has been given to children with special needs and to those in disadvantaged areas.

For those in disadvantaged communities additional targeted funding is also being provided under the DEIS action plan for schools serving disadvantaged communities. A total of 670 primary schools were identified for intensive support while other schools are also receiving assistance in line with the less concentrated level of disadvantage among their pupils.

Almost €14 million in DEIS grants, in other words, those targeted at disadvantaged schools, issued to more than 2,500 schools last November. A total of €10.2 million of that, 73%, was allocated to the 670 most disadvantaged schools. This represented a year on year increase of 15% in the level of these grants.

The support provided to each school depended on the proportion of its pupils that come from socio-economically disadvantaged backgrounds. The resources are administered locally and while guidelines are issued, it is a matter for the individual school to decide how best to apply the funding to suit its particular needs. That is a recognition of the problems some of our most disadvantaged communities are facing.

In addition to supplementary financial assistance, schools participating in our support programme for disadvantaged schools, known as DEIS, benefit from additional measures which range from preschool interventions, supports for tackling children's literacy problems, reduced pupil-teacher ratios, allocation of administrative principals on lower enrolment, measures to tackle early school leaving, measures to strengthen ties between the school, the family and the community, and the provision of continuing professional development for teachers. Book grants are also available to schools and schools that operate a school rental scheme are given additional money over and above the book grant. Deputies will be aware of the school meals scheme funded by the Department of Social and Family Affairs, which it expanded significantly this year to ensure that all the DEIS urban schools were included. The Government will continue to prioritise the needs of schools serving disadvantaged communities.

The emphasis on tackling educational disadvantage in recent years is unprecedented. This year we are investing more than €800 million in measures aimed at tackling disadvantage at all levels. This represents a 10% increase on last year's provision and a 75% increase on the 2003 allocation.

In addition, funding is also provided to primary schools for minor capital works. A total of €27 million in minor works grants were paid to schools at the end of 2007. That money is designed to address some of the problems identified by some Deputies here. That work was never intended to be done by way of capitation funding. The grant has been increased by almost 50% in over two years.

The record investment as part of the school building programme in recent years and under the current national development plan is transforming the standard of school accommodation and helping to provide more energy efficient school buildings, which in turn will achieve savings for schools on heating and lighting costs.

Mention was made of the issue of information technology in schools, of which Deputies will be aware. The Government has already expended €200 million on the ICT in schools programme ensuring not only that hardware was provided but also software, broadband connection networking, particular grants for disadvantaged students and training for teachers. I will shortly be announcing the implementation plan for our new ICT strategy of €252 million between now and 2013.

The Department of Education and Science has also made a number of improvements in recent years to reduce administrative costs for schools. The Department has taken over the payroll for various categories of school staff, including more than 8,000 special needs assistants in primary schools, which avoids the inefficiencies and associated costs of having them paid individually at local school level.

An on-line claims system for processing the payment of substitute teachers in schools has also been rolled out and changes to procedures for advertising teaching posts are being made this year to enable schools achieve reductions on advertising costs through the advertising of teaching vacancies on the Internet.

It is important not to lose sight of the wider picture of the range of improvements that have been made, and continue to be made this year, in education. Since 2001 we have put in place more than 7,000 additional teachers and more than 6,500 extra special needs assistants in our primary schools alone. We have also increased the capital investment at primary level from €140 million to approximately €390 million and we have doubled the day to day funding for primary schools.

I am not suggesting there is not a need for additional increases in funding for schools. The legitimacy of the case for further increases is expressly recognised in the programme for Government commitments but, equally, the programme for Government is predicated on growth and having a strong economy. That must be our major priority as a Government.

I am confident that during the course of our term of office we will be able to build on what we have achieved so far in working with teachers and principals in schools to ensure the quality of teaching, to which we have all become accustomed, together with the improvements we have seen in our schools, will ensure that it is the children who continue to get the full benefit. Working together in a spirit of partnership and recognising the priorities the Government and I have, as Minister for Education and Science, we will be able to build on our significant achievements with our commitments in the coming years in a manner consistent with the overall prudent management of the economy.

See this speech in context