Seán Haughey (Dublin North Central, Fianna Fail)

I thank the Deputy for raising this matter as it gives me an opportunity of outlining to this House the Department's position regarding the allocation of funding for Mount Bruis national school, Mount Bruis, County Tipperary.

The management authorities of this school applied for and were approved for funding under the 2007 small schools scheme. A grant of €484,000 was sanctioned to enable the provision of extension and the modernisation of the existing school building. The Department moved towards a model of devolving funding, responsibility and authority as appropriate for smallerbuilding projects-refurbishments directly to school management authorities in 2003 with the introduction on a pilot basis of the devolved small schools and permanent accommodation schemes. Owing to the positive feedback from schools the schemes were extended to include additional schools in subsequent years. The small schools scheme allows boards of management to address their accommodation and building priorities with a guaranteed amount of funding and gives them control of the building project.

The intention of the scheme is to provide funding to schools to enable them to undertake desired building projects. The scheme is not intended to leave schools with significant fundraising needs but to allow them to tailor the scope of capital works commissioned to the available funding. A central tenet of the scheme is that the schools granted discretion and funding must equally accept responsibility for prioritisation, adherence to statutory regulations, control of costs and ensuring value for money. The decision on whether to continue participating in the scheme or drop out, if the scope of build is more than the funding envelope permits, is a matter for each school authority.

The authorities of the Mount Bruis school accepted the grant offer and returned a form of undertaking agreeing to comply with the requirements of the scheme in March 2007. A letter and project cost details were received on 1 June 2008 indicating that the school's building proposals would cost €766,000, some €282,000 in excess of the €484,000 on offer to the school. The school requested that the shortfall be funded by the Department and indicated that it was not possible to downscale its building plan. This request for significant additional funding was considered in the Department. However, in line with the original intention of the small schools scheme, it was considered that the school should be encouraged to complete the project within the funding envelope provided and, accordingly, the application for additional grant aid was not granted.

In the current economic climate and with considerable demands on the capital budget of the Department, it is not possible to entertain such significant increases in the amounts grant aided to schools. It is the responsibility of the school authorities to manage the resources allocated to them to ensure maximum value for money and to control costs. The board of management should take the necessary steps to ensure that the scope of the works undertaken matches the funding being allowed.

I am sure the Deputy will agree it is important that we ensure grant aid is managed prudently. As he may be aware, a total of €586 million will be spent under the Department's schools building programme this year alone. It is important to ensure that costs are kept under control in the construction of school buildings and that those responsible ensure that value for money is achieved for the taxpayer. In this way, we can ensure completion of the maximum number of projects from within the funds available to the Minister for the schools building programme under the current national development plan.

I thank the Deputy for affording me the opportunity to outline the current position to the House.

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