Dáil debates

Thursday, 16 December 2010

Other Questions

Departmental Expenditure

4:00 am

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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Question 9: To ask the Tánaiste and Minister for Education and Skills the ratio of the reductions in education spending, announced in the recent budget that came from each of the following headings: capital budget; staff pay and pensions; all other resources; the reason she has decided to increase the cost of education on families in the recent budget; if she will note that the cutbacks in school capitation grants, increased third level fees and higher school transport charges in particular, will have serious consequences for families who are already suffering from wage-cuts and increases in taxation; and if she will make a statement on the matter. [47668/10]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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The 2011 gross Voted allocation for my Department is just under €8.855 billion. This is a reduction of €147 million, or 1.6%, on the 2010 allocation. In addition, the 2011 provision for expenditure under the national training fund of €362 million represents a reduction of €60 million, or 14%, on 2010, due mainly to a projected significant reduction in fund income.

The €147 million reduction in the Voted allocation for next year is an aggregate figure and takes account of reduced allocations in respect of certain areas of expenditure and of increased allocations for other areas. In regard to capital expenditure, the allocation of €491 million represents a reduction of €216 million, or 31%, compared to 2010. On the current expenditure side, the Voted allocation of €8.364 billion represents an increase of just under 1% on the 2010 figure. Within this, the pensions provision for next year of €1.091 billion is 8.7% or €87 million higher than 2010, while the 2011 allocation for pay of €5.406 billion is €14 million or 0.3% higher than in 2010. The non-pay balance of current expenditure of €1.867 billion compares with an allocation for 2010 of €1.898 billion, a reduction of 1.6%.

In addition to the reduction in capital expenditure in 2011, Voted current expenditure for next year takes account of further savings of some €175 million. These include savings on school transport, public sector numbers, supervision and substitution, student support, third level and post-leaving certificate charges, training allowances, funding grants to schools and a range of administrative savings. Some €73 million of this €175 million relates to pay.

In the context of the considerable savings now required, the Government has gone as far as it can to protect front line education services. We have also sought to limit the impact of savings on families, in particular, less well-off families and families where two or more family members avail of a service. This is why a family cap will apply in respect of the revised school transport charges and why families with two or more dependents at third level, or those that are marginally over the income levels for higher education grant support, will be protected from the full impact of the introduction of the student contribution. In addition, students eligible for maintenance grant support and from less well-off families will be protected from the new charge for post-leaving certificate courses.

As the Deputy will be aware, achieving savings in the education and skills budget is never easy and this is particularly so at a time of growing numbers in our schools and increased demands on services. The challenge is how to achieve savings in the sector in a balanced and measured way that does not impact detrimentally on the systemic importance and strengths of our education and skills infrastructure or overly burden students or families.

Photo of Ruairi QuinnRuairi Quinn (Dublin South East, Labour)
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I thank the Minister for her reply. There are effectively four increases that come into effect as a consequence of the budget. First, will the Minister change the name of the third level student contribution to what it used to be, namely, fees? There are fees for postgraduates and night students, so why have a different nomenclature for the financial cost? It should be called "fees". The Minister has abolished free fees.

Second, has the Minister thought out the implications in regard to €50 charge for primary schools? To my knowledge, this is the first time primary school children have been brought into the free transport area and I would like to get the Minister's response. What are the implications? Will this generate more traffic in rural Ireland, for example, where parents may avoid the €50 charge and begin driving to school, which is counter-productive? The Minister of State discussed this at a committee meeting. At second level the tipping of the balance was that in some cases there were more cars in the car park than there was space for the bus to arrive. Will this be fully evaluated now? If the cost of providing free transport at second level drives people into their own cars, should it not be fundamentally reviewed? Is a cost benefit analysis being done ? The matter of the 5% cut arises in a subsequent question and I will deal with it then.

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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The Minister for State has carried out a value for money review of school transport. It is fairly efficient. There is scope for greater efficiencies in the delivery of school transport through the school transport system, the rural transport system and in the support of those attending health clinics and hospital appointments. Several pilot schemes have taken place. I am aware of one such scheme in my constituency, which has worked out rather well, involving a more efficient use of the service.

We will move towards more privatised service delivery. One issue which arose from the value for money audit, of which the Minister of State took charge, was that people were buying seats but not using them, a desperate waste of money. This meant someone who may have had an entitlement as a concession passenger could not get a place on the bus. The Minister of State will roll out his value for money policy as part of a more efficient way to deliver school transport.

The charge of €50 per primary school pupil was on the basis that our intelligence has shown that there are parents who purchase a seat on a primary school bus but, in the main, do not use it. As a consequence, other children do not have the opportunity from a concessionary perspective. There is a need to be more effective and efficient in the way we deliver the service and the value for money review has given the Minister of State the opportunity to implement several policy initiatives.

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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It seems people buy school bus places and do not use them. Does the Minister have statistics on this? It seems a waste of money on the part of the family if they do not use it. The space is never used. There are ghost buses paid for by parents who do not use them. It does not make sense.

Photo of Ruairi QuinnRuairi Quinn (Dublin South East, Labour)
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Does it suggest the price is too cheap for some?

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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At primary level, the average seat occupancy is 69% for the morning service and 64% for the evening service. At post-primary, the morning service is at 80% and the evening service is at 74%. Those are the statistics.

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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The difference is that people have paid for the other seats but do not sit in them.

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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Yes. It is more likely that there would be issues at post-primary level because people stay back at clubs and such things. Sometimes people use the service in the morning and then someone collects them in the evening.