Dáil debates

Wednesday, 15 October 2008

Financial Resolution No. 15: (General) Resumed

 

1:00 pm

Photo of Batt O'KeeffeBatt O'Keeffe (Cork North West, Fianna Fail)

This budget comes at a critical and defining time for our country. We all know that the international economic climate has altered radically in relatively recent times. The scale of this challenge and the pace at which circumstances have changed have combined to lift this budget out of the routine of economic management to one of critical importance to the future well-being of our country. This is no time for adjustments at the margins. This is a time for strong, firm and decisive leadership. It is a time to put the interests of our country to the fore and sectoral interests firmly on the back-burner. In framing this budget the Government has been very aware of the central role of education to economic progress and social cohesion. This awareness is reflected in an increased allocation for education.

The gross allocation for the education Vote in 2009 is just over €9.6 billion, representing an increase of €302 million and an overall increase of 3.2% on 2008. Education has received unprecedented levels of support from the Government in terms of increases in overall funding over the past ten years with education spending now more than treble what it was in 1997 when overall funding was just €3.1 billion.

The overall capital allocation for 2009 is being increased to €889 million. This represents an increase of nearly 10% compared with 2008. The Government recognises the essential importance of continuing to invest in our future productive capacity during the current economic downturn. This increased allocation will provide for a very significant construction programme and will see major projects under way across the country. This is in addition to the smaller capital projects that will be offered for public tender under the devolved grant schemes. As well as providing employment in the construction sector, it is my firm belief that increasing competition within the sector will provide increased value for money, enabling us to derive maximum benefit from this investment. In the tenders being received in the Department, we have noted a drop of 15% to 20% in the prices being quoted.

The 2009 capital allocation for schools will enable my Department to complete 26 major projects and commence construction on another 62 major projects. It will permit completion of 100 smaller projects on site and allow another 80 projects previously approved to progress to completion. In addition, a further 2,600 primary and post-primary places will be delivered in developing areas under the fast-track programme for September 2009.

As I previously indicated, I will be making some provision for a summer works scheme for 2009. The summer works scheme has been extremely successful in enabling schools to address long-standing infrastructural issues. Since the scheme was introduced in 2004, 3,000 projects, costing €300 million have been completed. Work will also continue on my Department's public private partnership programme, with four post-primary schools due to commence construction before the end of 2008. When completed, these schools will provide 2,700 school places. Procurement has commenced on the second bundle of six schools and work on identifying the third and fourth bundles of schools is well under way. When compared with the level of activity under the schools building programme in 1997, when only 42 large-scale primary and post-primary school projects were under way with a capital allocation of just €92 million, it is clear that the scale of delivery in 2008 is unprecedented and is an exceptional achievement. I am very pleased I will be able to maintain a similar level of activity in 2009.

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