Deirdre Clune (Fine Gael)
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I wish to raise the matter of the Minister's plans for fee-paying schools and their place in the future provision of education. Some 26,000 pupils are being educated in 55 fee-paying schools in the country. It was announced in the budget that the pupil-teacher ratio would be increased to 23:1 in fee-paying schools from next September. This follows on from last year's increase in the pupil-teacher ratio. It is estimated this measure will save the Department ¤2 million in 2013 and ¤6 million in 2014.

The cost to the State of educating a pupil in a fee-paying school is ¤4,500 per year while the cost of educating a pupil in a non-fee-paying school is ¤8,000 per year. This means a saving to the State of ¤3,500 per pupil per year. Many parents, teachers and pupils are concerned about the future of their school should this increase in pupil-teacher ratio continue or if funding were not available. If even 10% of the 26,000 pupils were to leave the fee-paying schools this year and opt for places in the non-fee paying schools, it is estimated this will cost the State ¤9 million. The issue of capacity in the free education system also arises. The Minister has stated that schools may enter the free education system but pupils will also leave fee-paying schools and look for places in the non-fee-paying schools. I can foresee the issue of capacity arising in the schools in my own area should the fee-paying schools no longer exist. I hope it will not get to that point.

I am articulating the concerns of these schools. Does the Minister foresee them continuing in existence? In many cases, parents have opted for a fee-paying school in order to have their children educated in a certain religious ethos. These parents are taxpayers and this is how they have chosen to spend their after-tax income. The figures do not bear out the argument that the system is unfair. In fact, the figures show that the fee-paying schools are saving the State. At a time when the Minister wants to reduce the departmental budget, it would be a retrograde step to continue to support the fee-paying schools sector.

Parents need to have certainty with regard to the future of fee-paying schools when they are considering the long-term educational needs of their children. It is certain that the increase in the pupil-ratio will result in higher fees.

Joe Costello (Dublin Central, Labour)
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I thank the Senator for raising this issue. It affords me the opportunity to outline to the House the policy of the Minister for Education and Skills, Deputy Ruairí Quinn, on fee-paying schools.

This Government has protected front-line services in schools to the greatest extent possible in the recent budget. There will no reduction in teacher numbers in primary schools and in free second level schools for the 2013 to 2014 school year as a result of the recent budget. The DEIS scheme for disadvantaged schools is also fully protected with no overall changes to staffing levels or funding as a result of the budget.

The Department's current expenditure budget for 2013 is ¤8.514 billion. Savings of some ¤90 million are needed for next year. This is made up of ¤77 million of savings announced under last year's comprehensive expenditure review, together with a further ¤13 million in order to meet upward pressures mainly associated with the pay costs for teachers and special needs assistants.

Given that four in every five euro in the gross current budget is spent on pay and pensions, it has not been an easy task to identify the savings of ¤90 million needed. However, the Minister for Education and Skills has sought, in so far as possible, to meet the programme for Government commitment to prioritise education and to protect front-line services.

In order to promote fairness in funding second level schools, a two-point increase in the pupil teacher ratio in fee-charging second level schools will be introduced in September 2013. There are currently 55 schools out of 723 post- primary schools, charging fees ranging from ¤2,550 to ¤10,065 for day pupils. At present, the State pays the salaries of one teacher for every 21 pupils in these schools compared with one teacher for every 19 pupils in schools in the free education scheme. A ratio of 18.25 pupils to one teacher, applies in DEIS schools. This will rise to 23:1 in fee-charging schools. However, these schools have the resources, through fees charged, to employ teachers privately, an option which is not available to schools in the free education scheme. A report on the analysis of the tuition income of fee-charging schools carried out by the Department of Education and Skills will be published in the new year. This report is expected to show that fee-charging schools have considerable discretionary income and are best placed to manage with reduced public funding.

I am aware of some concerns within the Protestant community on the recent budget measure. I assure the House that this Government recognises the importance of ensuring that students from a Protestant or Reformed church background can attend a school that reflects their denominational ethos while at the same time ensuring that funding arrangements are in accordance with the provisions of the Constitution.

With regard to the fee-charging Protestant schools, an arrangement exists whereby funding is provided by the Department of Education and Skills to the secondary education committee, SEC, an organisation run by the churches involved in managing the Protestant secondary schools. This committee disburses funds to the Protestant fee-charging schools on behalf of pupils who would otherwise have difficulty with the cost of fees and who, in the absence of such financial support, would be unable to attend a second level school of a Reformed church or Protestant ethos. Funding amounts to ¤6.5 million annually. This fund ensures that necessitous Protestant children can attend a school of their choice. I thank the Senator for providing the opportunity to outline the position to the House.

Deirdre Clune (Fine Gael)
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I thank the Minister of State. I acknowledge the support to the Protestant schools. The joint committee has had discussions with those schools. I refer also to Catholic fee-paying schools who need to be considered because parents chose to send their children to those schools for that specific type of religious education.

Joe Costello (Dublin Central, Labour)
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I will convey the Senator's comments about the Catholic fee-paying schools to the Minister for Education and Skills. In reply to her question as to whether there is a future for fee-paying schools, I certainly believe they have a future.