Joanna Tuffy (Dublin Mid West, Labour)
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Question 87: To ask the Minister for Education and Science, further to her reply to Parliamentary Question No. 119 of 2 October 2007, the comprehensive details of the long term lease agreements referred to in the second line of the last paragraph of her reply; and if she will make a statement on the matter. [28456/07]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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The type of Lease involved, in the case of State investment in privately-owned schools, is not a demise of property but rather it puts a charge on the property. This charge, on the Department's behalf, is registered as a burden on the relevant folio and requires to be legally surrendered by the Department should the owner of the property wish to sell. This charge does not permit the Department to prevent the property owner from selling. However, the Department may seek a full or partial refund of the capital investment, which is the subject of the Lease, in accordance with the terms of the individual Lease.

As part of our ongoing modernisation of administrative systems and delivery methods, the School Building Section is in the process of finalising a generic Deed of Covenant and Charge to protect State investment in privately-owned schools. This will be more flexible and less onerous to put in place than the old-style Lease. However, as with the old-style Lease, the Deed will empower the Department only to re-coup its investment should the owner decide to sell or otherwise to cease operation as an educational facility. It does not confer the power to prevent a sale in such circumstances, as long as appropriate recoupment is made by the property owner.

The draft Deed of Covenant and Charge is currently being examined in my Department in consultation with the Chief State Solicitor's Office. Upon finalisation, it is intended to put the new Deed of Covenant and Charge in place for each privately-owned school where investment of State capital funding has been made.