Fidelma Healy Eames (Fine Gael)

Given the state of the economy, we are at a particularly critical time in our history. The underfunding of primary school education is causing a serious situation. I intend to raise five points, which I would like the Minister to address in his reply. I will begin by examining how we fare compared to other OECD countries. The recent OECD report entitled "2008: Education at a Glance", which was published in September, indicated that Ireland has the third lowest education spend in Europe. That must be borne in mind. In addition, the report stated that educational expenditure, as a proportion of GDP, fell from 5.2% in 1995 to 4.6% in 2005 — that was during ten years of boom.

My first point concerns the massive shortfall in day-to-day funding for our primary schools. Such schools are in debt because the capitation grant is inadequate. They are struggling to make ends meet and the capitation grant levels are not covering expenses such as oil, electricity, insurance and phone charges. In addition, water charges are soon to be implemented. I have been reliably informed that this will become a major issue in next year's local elections.

Many schools rely on fundraising and voluntary contributions from parents to survive. A recent meeting of the Joint Committee on Education and Science was attended by representatives of the IPPN, the primary school principals' network, and the CPSMA, the Catholic primary schools management association. They told the joint committee that the average primary school is in debt to the tune of €23,000.

A survey of 300 schools for the calendar year 2006 showed that parents were paying one third of primary school running costs. In other words, for every two euros the State puts in, parents are paying an additional euro. A south Dublin INTO survey showed that the situation is even worse — that for every one euro from the State, parents are contributing one euro. This is happening thanks to charity walks, readathons and race nights. Where I come from in Galway it is called "Who wants be a thousandaire?" Will this Fianna Fáil-led Government be the first to get rid of free education, at least the primary school element?

Increasingly, schools are asking parents for voluntary contributions. However, there was a disturbing experience recently when one Galway school asked for a voluntary contribution of €40, and a parent contacted the school to say "Please don't ask us. It is embarrassing. We can just about meet our mortgage". These are the times in which we are living. With the Government's permission, banks used to loan 100% mortgages to families, but now they are having difficulty meeting the basic cost of running a home, not to mention school costs.

Fine Gael is recommending a number of measures to rectify this situation. The programme for Government promised to double the capitation grant. The Minister should tell the House what he proposes to do in this regard. We have made a reasonable proposal, asking the Minister to commission an independent review of capitation grants to be delivered within six months. If he is not going to do that, he should tell us by how much he will increase the capitation grant so that schools will know how to cope with their debts. Schools should be able to run smoothly without worrying about how they are funded. They deserve no less.

The Minister should investigate the possibility of refunding VAT paid on goods and services to schools, which amounts to a huge annual bill. Last year, one school in Portlaoise paid €14,000 in VAT. Gaelscoil de Híde, in my own area of Oranmore, paid €21,500 in VAT on prefabs last year. Meanwhile, a south Dublin school with 18 teachers paid €8,400 in VAT. This area offers big potential because essentially the schools are another arm of the State. Schools are being asked to pay VAT on goods and services they purchase, yet the Minister is not funding them adequately, so the principle is basically unfair.

The Minister should also examine the option of using the State Claims Agency to provide insurance for schools. There is a precedent because insurance for model schools, or modhscoileanna, run by the Department of Education and Science, is paid for in this way. This is a real opportunity to help with the capitation grant because, as the Minister is aware, insurance is paid from that grant. I would appreciate it if the Minister could examine this matter.

It is disturbing that 10% of our schools have had to achieve charitable status. What sort of trend is it when education is called charity, but we know it is a right? There is a benefit in this for some schools because those that get donations receive matching benefit from the tax system, but that is not a possibility for less well off schools, which are unlikely to attract donations.

I also wish to refer to the repair and maintenance of school buildings. It is a false economy not to keep our schools functioning as safe places for learning. They will fall apart if the Minister continues to keep the summer works scheme out of the system. Last year, one thousand schools applied for the scheme but while their applications were accepted, they have now been frozen. That work would have constituted essential maintenance for roofs, electrical work, boilers and windows, which are major health and safety concerns for the children involved. The Minister is now putting that responsibility on the school boards of management but he will bankrupt them unless the scheme is reinstated. One thousand schools add up to thousands of parents and tens of thousands of children. The effects on health have been well documented. I received correspondence in my office about the effects of rising damp in classes with poor windows. An example is the spread of asthma. This scheme was abandoned by the former Minister, Deputy Mary Hanafin and, so far, by the Minister, Deputy Batt O'Keeffe. It is a disaster for schools. I ask the Minister to indicate today when this scheme will be reintroduced. Schools were promised this.