Written answers

Tuesday, 17 November 2009

Department of Education and Science

Capital Expenditure Programme

10:00 pm

Photo of Seán SherlockSeán Sherlock (Cork East, Labour)
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Question 484: To ask the Minister for Education and Science the reason he is behind targets on capital spending for schools in 2009; and if he will make a statement on the matter. [41769/09]

Photo of Batt O'KeeffeBatt O'Keeffe (Cork North West, Fianna Fail)
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The published expenditure figures for the end of October 2009 show that my Department's capital expenditure on primary and post-primary level schools is €367.728 million, which is €112 million behind the profiled, or projected, figure to the end of October. My Department's total budget in 2009 for primary, post-primary and third level capital is €841 million. Expenditure on the large number of individual projects included in a capital programme of this magnitude is subject to very considerable variation on a calendar year basis. It was in recognition of this that the current framework of rolling multi-annual capital envelopes, encompassing a carry-over facility of up to 10% of the total amount available in any one year, was introduced.

The principal area where expenditure is running behind profile is schools' major capital projects. These projects comprise new schools, major extensions and refurbishment projects. The main reason for the underspend against profile 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 very significant factor is that tender prices obtained for this programme are yielding a reduction of up to 30% compared to prices obtained at the height of the construction boom. In addition, an extensive programme of smaller-scale schools' capital projects is being delivered, mainly through the Summer Works Scheme which this year includes an energy efficiency component for which in excess of 1,600 schools have now been approved.

There is a significant amount of capital expenditure programmed for the remainder of 2009. Expenditure trends in recent years bear out the fact that an increased amount of invoices and other claims for payment are made in the final quarter as builders complete projects and schools draw down their capital grant approvals. The annual grant for minor capital works to primary schools has issued and will be in the schools' accounts by the end of this week.

I am keeping the position under close review and considering all appropriate options regarding the expenditure position. These options include the possibility of carrying forward funding into 2010. As I have already mentioned, if necessary, and in agreement with the Minister for Finance, up to 10% of the overall allocation of €841 million can be carried forward to 2010.

Since I became Minister for Education and Science, I have consistently emphasised my determination to ensure best value for money in capital projects and that the available funding is spent in a prudent way. I am particularly pleased to note the reduction in tender costs for capital projects. I intend to continue to maximise value for money and to ensure that as many schools as possible will benefit from the very favourable tenders that can now be obtained in the construction sector and in this context, my Department is currently finalising a further programme of major capital projects for 2010 which I will announce in due course.

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