Written answers

Tuesday, 20 October 2009

Department of Education and Science

Schools Building Projects

9:00 pm

Photo of John O'MahonyJohn O'Mahony (Mayo, Fine Gael)
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Question 606: To ask the Minister for Education and Science the plans he has in place to ensure all moneys allocated to the schools capital building projects for 2009 will be used; and if he will make a statement on the matter. [36939/09]

Photo of Batt O'KeeffeBatt O'Keeffe (Cork North West, Fianna Fail)
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My Department's total budget in 2009 for primary, post-primary and third level capital is €841m. Of this, just under €614m is in respect of primary and post-primary schools and just under €200m is in respect of the third level sector.

In respect of third level sector capital, at the end of September a total of almost €115m had been expended from a total allocation of just under €200m. I am confident that the entire remaining sum of €67m will be fully expended between now and the end of the year.

On the schools' capital side, expenditure to the end of September was €321.3m, which is almost €92m below the anticipated figure.

The main area where expenditure is less than anticipated is on Primary and Post-Primary major capital projects. These projects comprise new schools and major extension and refurbishment projects.

The main reason that expenditure is less than originally anticipated on the major schools capital projects is that my announced programme of 78 projects to commence construction in 2009 has been slower to get started on site than initially expected. Another significant factor is that tenders obtained for this programme are yielding a reduction of up to 30% as compared to prices at the height of the construction boom. I have always put a very high priority on the achievement of value for money in capital projects and I welcome this reduction in tender prices.

It should be noted that any saving in 2009 relating to the later than expected commencement on site of any major project is a deferred or delayed commitment. This commitment will now arise in 2010. The rolling multi-annual capital envelope framework allows for the carry-forward into the following year of up to 10% of the annual capital budget and my Department will be engaging with the Department of Finance in this regard.

There is a significant amount of capital expenditure planned for the remainder of the year.

I will continue to monitor the overall position carefully and will consider, in consultation with the Minister for Finance, the options regarding any capital savings. These options include the option to carry forward to 2010 deferred expenditure commitments.

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