Dáil debates

Tuesday, 20 October 2009

Other Questions

Schools Building Projects.

4:00 pm

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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Question 111: To ask the Minister for Education and Science the reason €396 million of capital expenditure within his Department has yet to be spent; and if he will make a statement on the matter. [36973/09]

Photo of Martin FerrisMartin Ferris (Kerry North, Sinn Fein)
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Question 117: To ask the Minister for Education and Science when and how he will spend the remainder of the budget for school buildings; and if it will be spent before the end of 2009. [37105/09]

Photo of Martin FerrisMartin Ferris (Kerry North, Sinn Fein)
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Question 154: To ask the Minister for Education and Science the reason almost half the 2009 budget for school buildings has not been spent; and if he will make a statement on the matter. [37104/09]

Photo of Batt O'KeeffeBatt O'Keeffe (Cork North West, Fianna Fail)
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I propose to take Questions Nos. 111, 117 and 154 together.

My Department's total budget in 2009 for primary, post-primary and third level capital is €841 million. Of this, just under €614 million is in respect of primary and post-primary schools and just under €200 million is in respect of the third level sector. In respect of third level sector capital, at the end of September a total of almost €115 million had been expended from a total allocation of just under €200 million. I am confident the entire remaining sum of €67 million will be fully expended between now and the end of the year. On the schools' capital side, expenditure to the end of September was €321.3 million, almost €92 million below the anticipated figure.

The main area in which expenditure is less than anticipated is that of primary and post-primary major capital projects. These projects comprise new schools and major extension and refurbishment projects. The main reason that expenditure is less than originally anticipated on the major schools capital projects is that my announced programme of 78 projects to commence construction in 2009 has been slower to get started on site than initially expected. Another significant factor is that tenders obtained for this programme are yielding a reduction of up to 30% as compared with prices at the height of the construction boom. I have always put a high priority on the achievement of value for money in capital projects and I welcome this reduction in tender prices.

It should be noted that any saving in 2009 relating to the later than expected commencement on site of any major project is a deferred or delayed commitment. This commitment will now arise in 2010. The rolling multi-annual capital envelope framework allows for the carry-forward into the following year of up to 10% of the annual capital budget and my Department will engage with the Department of Finance in this regard.

These projects are the first batch of school projects to be tendered under the new form of public works contract now in operation throughout the public sector. The introduction of this new type of contract and associated documentation for public construction projects, the use of which became mandatory in February 2008, has proved to be a significant culture change in the external construction consultancy industry. A bedding down period has ensued while the external construction consultancy industry builds up expertise and familiarity with the new requirements. It has taken an average of three months longer than originally expected to ensure the updated tender documentation is fully compliant with the new contractual requirements.

The large number of relatively small projects involved in the schools capital programme has meant these delays have had a significant cumulative effect on anticipated capital expenditure. There is a significant amount of capital expenditure planned for the remainder of the year. I will continue to monitor the overall position carefully and will consider, in consultation with the Minister for Finance, the options regarding any capital savings. These options include the option to carry forward to 2010 deferred expenditure commitments.

Photo of Brian HayesBrian Hayes (Dublin South West, Fine Gael)
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Will the Minister confirm that, between primary and post-primary, there are some 1,200 existing applications under the schools building programme, some of which have been lodged for a considerable period? Will he also confirm whether it was his suggestion or that of one of his officials that some of the capital allocation which may not be expended this year may instead be used for information and communications technology roll-out such as, for example, the purchase of laptops for schools?

Photo of Batt O'KeeffeBatt O'Keeffe (Cork North West, Fianna Fail)
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Before responding to Deputy Hayes, I apologise to Deputy Quinn for providing him with an incorrect figure. To clarify, there are 151, not 159, additional classrooms.

I understand the number of existing applications to the schools building programme is in the region of 1,200. I will get the precise figure for Deputy Hayes in due course. Regarding the diversion of funding, it should be noted that information and communications technology provision is part of the capital programme. An allocation of €10 million was set aside for ICT this year and it is my intention to spend that money before the end of the year.

Photo of Arthur MorganArthur Morgan (Louth, Sinn Fein)
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Is the Minister aware that 97 schools in my constituency are either renting or have purchased prefabricated accommodation? Of those, four are paying out more than €500,000 per annum in rent. This is wasted money. The Department must take action without delay to progress the schools building programme. Would it be helpful in this regard if there were more Ministers of State? Is that the difficulty? There are currently three attached to the Department.

Photo of Batt O'KeeffeBatt O'Keeffe (Cork North West, Fianna Fail)
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There are four.

Photo of Arthur MorganArthur Morgan (Louth, Sinn Fein)
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Are more Ministers of State required or is the problem to do with productivity within the Department and a lack of political leadership? Apart from the education benefit, the economy in general badly needs a stimulus of some type. The Minister will do a great service to the country by ensuring this money is spent.

Photo of Batt O'KeeffeBatt O'Keeffe (Cork North West, Fianna Fail)
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The current capital programme is the second largest ever to be rolled out in the State. The money that has been set aside will be spent on capital projects throughout the country. As I outlined in my reply, a new form of public works contract is now in place which places an onus on the builder to assume a greater degree of the risk associated with particular projects. As they familiarise themselves with this new system, it has been taking consultancy firms an additional three months to put together their plans. A workshop was held in Tullamore at which contractors were told precisely what is required under the new formal contract. There have been teething problems but all the money set aside for major capital projects will be spent on those projects. There will be a carryover of some of that money into 2010 but all the projects announced in 2009 will be covered by the Estimate given to me at the beginning of the year.

Photo of Ruairi QuinnRuairi Quinn (Dublin South East, Labour)
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Has the Minister given renewed consideration to the idea of publishing the comprehensive waiting list so that every primary and post-primary school in the State has an indication of where it is on the list? All the emotional energy expended in seeking to find out that information, which soaks up so much time in Tullamore, in the Department and at Question Time, could be done away with. If the CAO system were run the way the Minister runs the schools building programme, there would be absolute chaos. No young student would know where he or she was with regard to points and student applications to universities. Has the Minister any moral sense of the duplicity of this system in its current format?

Photo of Batt O'KeeffeBatt O'Keeffe (Cork North West, Fianna Fail)
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I understood that we put these projects on the website and that we had given them a band rating, so it was there for anybody to check them out. If that is not the case, I will check when I go back to my office.

Photo of Finian McGrathFinian McGrath (Dublin North Central, Independent)
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Is the Minister aware that on the north side of Dublin, he is often referred to as the €396 million man, due to that amount of money at his disposal while many schools on the north side could do with assistance? Can the Minister use some of this money to resolve the problem at Belgrove national school in Clontarf?

Photo of Ruairi QuinnRuairi Quinn (Dublin South East, Labour)
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I suggest the Deputy look it up on the web.

Photo of Finian McGrathFinian McGrath (Dublin North Central, Independent)
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Is there an issue with architects' fees and money paid by the Department of Education and Science? Is there money owed to architects and other design professionals?

Photo of Batt O'KeeffeBatt O'Keeffe (Cork North West, Fianna Fail)
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I take it the Deputy was referring to Gaelscoil Barra in his first question. That school has released a CD about the issue. I cannot build a school when its board has not acquired a site. Negotiations are ongoing with the GAA. I understand that a close affinity exists between the school and the GAA. If we can get agreement from the GAA, then I want to buy the site. Until such time as there is an agreement, the site is not legally in our ownership and I cannot build on a site that I do not own. It is a simple as that.

All of the money that I have been given this year will be spent on the projects that were outlined at the beginning of the year. I expanded the summer works scheme. I put in place an energy efficiency scheme, while a minor works scheme costing €30 million will be in place before the end of the year. All the money available to me will be spent wisely and well, but some of it may move into 2010.

Photo of Finian McGrathFinian McGrath (Dublin North Central, Independent)
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What about the architects' fees?

Photo of Batt O'KeeffeBatt O'Keeffe (Cork North West, Fianna Fail)
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I am not aware of any difficulty with architects' fees, but I will check it out for the Deputy.

Photo of Denis NaughtenDenis Naughten (Roscommon-South Leitrim, Fine Gael)
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The projects have been earmarked for places that have been designated as rapidly expanding areas. What is the justification for that? Areas like Athlone have seen less than 6% growth, yet communities in my constituency that have seen 30% growth are being excluded. Children are in buildings that are nearly 200 years old, while prefabs have been used for generations, yet nothing seems to happen. There are huge waiting lists, yet they are not being prioritised within the Department.

Photo of Brian HayesBrian Hayes (Dublin South West, Fine Gael)
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Given the value the Minister is getting on the capital programme this year - he said that the reduction would be about 30% from what he expected - is it fair to assume that next year we will see more schools built for the reduction in building costs? At this stage, is he able to give an indication to the House about the scope and the scale of the capital programme for next year?

Photo of Batt O'KeeffeBatt O'Keeffe (Cork North West, Fianna Fail)
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There will be a major building programme next year. I expect that my capital programme will be very extensive, but I cannot say exactly how extensive because we have not completed the Estimates. I am satisfied that I will get very good value and that I will continue to build more and more schools and classrooms.

We have geophysical information on where there will be greatest need for additional classroom space. There are 42 locations identified, and I will publish those when we have completed our programme. Developing areas got about one third of the total provision in previous years, and as a representative, I would be very conscious that it cannot be concentrated in the one area.