Stephen Donnelly (Wicklow, Social Democrats)
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3. To ask the Minister for Public Expenditure and Reform the reason his Department allocated just €24 million to the Department of Education and Skills in budget 2016, outside of pay restoration agreements, from a total fiscal space available of €1.5 billion; and the reason he is directing expenditure to that Department, between current and capital expenditure, to fall between 2015 and 2016. [40743/15]

Stephen Donnelly (Wicklow, Social Democrats)
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Why, out of a total fiscal space in the budget of €1.5 billion, did the Minister just direct €24 million or less than 2% of that to the Department of Education and Skills? Why does the budget documentation show that he has directed that total funding to the Department between this year and next year should fall by €29 million?

Brendan Howlin (Wexford, Labour)
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The Deputy should note that, as set out in the expenditure report I circulated on budget day, the underlying increase in gross funded current expenditure is, in fact, €170 million. Excluding Lansdowne Road agreement related costs of €43 million, the increase in the allocation for the Department of Education and Skills is more than five times the figure mentioned in the Deputy's question. This reflects the fact that in estimating the year-on-year change in educational expenditure between this year and next account needs to be taken of the non-recurrence next year of a 2015 cash cost of €127 million in relation to an accrual in respect of pay and pensions. This is set out in the documentation.

The expenditure report for next year sets out that an additional €24 million, as the Deputy rightly said, has been allocated to new measures. In specific terms, the budgetary and Estimates decisions will provide for an additional 2,260 teaching posts. These include 810 extra teachers to meet demographic pressures, 300 extra teachers to reduce the staffing schedule in primary schools from 28:1 to 27:1; 550 extra teachers to reduce the staffing schedule in secondary schools from 19:1 to 18.7:1; and 600 extra resource teachers for special needs education.

Against the backdrop of the available fiscal space, the share allocated to expenditure increases and spending pressures in other areas, the additional funding resources allocated to education represent a significant commitment by the Government to the development and improvement of the education sector. This must by allied with the significant capital announcement of almost €3 billion made by the Minister for Education and Skills during the week.

Stephen Donnelly (Wicklow, Social Democrats)
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Under the Government, the higher education system has seen cuts of 20% per student; there has been a 15% cut in the number of resource teachers since 2012; we have the second highest class sizes in the European Union; more than half of teachers under the age of 30 years are on short-term, part-time and substitute contracts; and there has been a 25% cut in funding for DEIS schools since 2010. Page 3 of the Minister's budget document lays out in black and white that of the €1.5 billion available at a time of fiscal and economic expansion and in the context of all of the cuts at all of these levels of education, the total amount for new expenditure measures is €24 million. This is in contrast with the figure of €561 million for a reduction in USC. Similarly, on the next page of the Minister's budget document, we see that gross current expenditure will increase by €44 million, while gross voted capital expenditure will decrease by €73 million. The net impact on the Department of Education and Skills, according to the Minister's budget document, is minus €29 million. Why has the Minister done this in the context of a decision to allocate more than €560 million through one tax cut?

Brendan Howlin (Wexford, Labour)
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As it is always a mistake to prepare one's speaking notes before hearing the answer to a question, I will repeat my answer. There is a non-recurring pay cost of €127 million which must be taken into account when making the comparison between the figures for 2015 and 2016. This should be clear. The Deputy's figure is wrong, as I have explained already. We have protected education expenditure throughout the crisis. With regard to capital expenditure, we have built more schools than the previous Government did in boom times because it was a focus. We have protected the pupil-teacher ratio throughout the crisis and are improving it. As I said, we will allocate 2,260 additional teaching posts next year. This cannot be met from the sum of money about which the Deputy has spoken. We must look at once-off expenditure items which occur in a single year and will not recur before a year by year comparison is made, but, of course, the Deputy knows this.

Stephen Donnelly (Wicklow, Social Democrats)
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I thank the Minister. He has said my figures are wrong, but the figures I have read out in black and white are taken from his budget document. They most certainly are not wrong.

Brendan Howlin (Wexford, Labour)
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The Deputy understands basic economics.

Stephen Donnelly (Wicklow, Social Democrats)
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To suggest class sizes have been protected under the Government is an insult to every teacher, principal, child and parent in the country. Class sizes have not been protected by the Government, as well the Minister knows. I will ask the question one more time. I accept the argument about one-off non-recurring payments and I did hear it. Nonetheless, the Minister had €1.5 billion available and education is the single biggest driver of economic stability and growth to ensure equality of opportunity for children. Of the figure of €1.5 billion, the Minister decided that €24 million was enough to allocate to the education system, but €561 million was an adequate amount to give by way of a tax cut. Why does he believe he should only allocate an additional €24 million from the figure of €1.5 billion as opposed to more than €560 million through one tax cut?

Brendan Howlin (Wexford, Labour)
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The Deputy said he followed the argument on non-recurring costs, but he then went back to the figure of €24 million, the argument about which he says he understands. We have protected class sizes. We did not worsen pupil-teacher ratios in any of the budgets we introduced. Even in the teeth of the crisis we protected them and have now improved them. With the very first easement of pressure on us, we improved the pupil-teacher ratios, the result of which will be an additional 2,260 teachers next year. On the quality of the school environment which is equally important, on the capital side we have prioritised investment in schools. We built schools in the worst of times.

Stephen Donnelly (Wicklow, Social Democrats)
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The Government cut capital investment by €70 million.

Brendan Howlin (Wexford, Labour)
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We have set out a further investment of €2.8 billion to ensure schools of the highest calibre will be available. Of course, we also have an IT programme to ensure every school has high quality broadband.