Written answers

Wednesday, 30 January 2008

Department of Education and Science

Schools Building Projects

8:00 pm

Photo of Brian HayesBrian Hayes (Dublin South West, Fine Gael)
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Question 1053: To ask the Minister for Education and Science if, in respect of all of the contracts entered into with various companies under the public private partnership model in building new school facilities, it is the case that such contracts require catering and canteen facilities to be provided by the company in question; if she will confirm the fact that where a school, which is built under this model, wants to remove various vending machines within the school, that compensation, under the contract, must then be paid to the company in question for breach of contract; if this issue has been brought to her attention; the position regarding the legality of this practice; and if she will make a statement on the matter. [2450/08]

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
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My Department has to date entered into three separate contracts for the design, build, finance, maintain and operate of school/college accommodation under the Public Private Partnership (PPP) model. The three projects are the 5 Pilot PPP Schools, the National Maritime College and the Cork School of Music. In all three contracts the provision of catering and vending services by the PPP operator is permitted. All three contracts stipulate that , if catering and/or vending is provided, the PPP Operator must pay a guaranteed income to the authority regardless of the level of net income received from these services. Provision is also made in the contract for the sharing of any net income generated above a certain limit.

There is no provision in any of the three contracts to pay compensation for breach of contract as a result of the withdrawal of vending machines from any of the school or colleges. The contract does provide that where products sold by the PPP Operator by means of vending are withdrawn from sale, either at the request of the Minister or because of a change in law then the guaranteed amount of net vending income will be revised to reflect the financial impact on the PPP Operator.

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