Ciarán Lynch (Cork South Central, Labour)
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Question 103: To ask the Minister for Education and Science if his attention has been drawn to the submission made by the Joint Committee on Education and Science on behalf of a number of primary management bodies on 10 April 2008; his views on whether there is a financial crisis in a significant number of primary schools who cannot pay for their day to day running costs from the capitation grant and who need to borrow funds from religious congregations or the local parish; if he will introduce a supplementary Estimate to deal with this financial crisis; and if he will make a statement on the matter. [19714/08]

Batt O'Keeffe (Cork North West, Fianna Fail)
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I am aware of the funding pressures on schools generally and also of the recent submission on this matter by the Primary Management Bodies to the Joint Committee on Education and Science. It is a key priority for Government to improve funding for the day-to-day running costs of schools to help address these funding pressures. Specific commitments in relation to improving school funding form a central part of the education provisions of the Programme for Government. These commitments are a direct follow on from the clear thrust of Government policy over recent years to improve the position of primary schools in particular.

All Programme for Government commitments to improve public services including those relating to improving school funding are contingent on the economic and budgetary environment and the need for prudent expenditure and fiscal management. Even since the presentation of Budget 2008 last December there have been significant alterations in the external and domestic environment. The Government will continue to prioritise further improvements on school funding for 2009 and onwards and this approach is the best way of sustaining the substantial improvements into the future.

In 2008 alone my Department will be paying around €167m to primary schools to meet their day to day running costs. The improvements announced in the last budget mean that the combined day-to-day funding for primary schools will increase by €21 to €330 per pupil. As a result, a primary school with 300 pupils will receive almost €100,000 to meet their running costs. The primary school capitation grant has been increased substantially in recent years. Since 1997 the standard rate of capitation grant has been increased from €57.14 per pupil to €178.58 from 1st January, 2008. This represents an increase of 212% in the standard rate of capitation grant since 1997. Furthermore enhanced rates of capitation funding are paid in respect of children with special educational needs who attend special schools or special classes attached to mainstream schools. The current rates range from €457.00 to €880 per pupil — an increase of 42% from the rate in 2006.

The Deputy will be aware that as well as general increases in capitation funding, extra financial supports are being provided to schools under the DEIS action plan for educational inclusion. In the current school year, DEIS related grants totalling almost €19 million were paid to schools to meet the needs of pupils from disadvantaged backgrounds. In summary, I agree that further increases are necessary and increasing the capitation for primary schools will be a key priority. I want to assure the Deputy that this Government has a track record of significantly increasing funding for schools and we will continue to build on this and deliver on our Programme for Government commitment.