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

Since the beginning of 2008, 557 schools have been approved for funding to purchase prefabs, with an alternative option to build permanent classrooms. To date, 201 schools have indicated a preference to build rather than purchase or rent prefabs. A further 249 have opted to purchase prefabs; the remainder have yet to indicate their preference. In 2008, just under €26 million was spent on purchasing prefabricated accommodation. This reduced to €7 million in 2009. In addition, just over €2 million was spent in 2009 on buying-out existing rental contracts in respect of 105 units in 15 schools, arising from my Department's review of the provision of temporary accommodation.

Of the 790 schools renting temporary accommodation in 2009, 92 schools received over €50,000 in rental grant aid and 73 schools received over €100,000. It is a key priority for my Department to reduce rental costs and achieve better value for money. Significant progress has been made in reducing spending in this area in the last year alone.

In 2009, expenditure on the rental of temporary accommodation fell significantly to €39 million, a saving of €14 million over 2008. This is a clear indication of my success in tackling this area of expenditure in 2009. Furthermore, the number of schools which are renting temporary accommodation has reduced by almost 10% in the last year and I intend to make further reductions in 2010.

A specialist firm has been engaged to review and develop new procedures and systems for the provision of temporary accommodation with a view to achieving best value for money. The work of this review is now well advanced. The target outputs of the review include a set of standardised specifications and a suitable generic contract for the rental of prefabricated accommodation. These will be in place before the end of 2010.

Another important strand of the review is to buy out existing rental contracts. Fifteen of these, involving 105 units, have already been terminated. A further group of schools will be targeted in 2010, with a view to identifying and achieving the most cost-effective solution for bringing to an end the relevant rental agreements.

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