Batt O'Keeffe (Cork North West, Fianna Fail)
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The average annual rental cost for a standard 80m2 temporary primary school classroom unit for 2007-08 school year was €15,428. The average cost for the same unit in 2008-09 was €15,125, a reduction of almost 2%. The cost per unit varies significantly depending on the location, size, type and age of each unit. Another factor which needs to be considered is that in 2907-08 the VAT rate for rental of temporary accommodation was 21%. In 2008-09 this rate rose to 21.5%. Therefore, a portion of the savings in rental costs was offset by this VAT increase.

The amount spent on the rental of temporary accommodation in 2008 was almost €53 million. In 2009, expenditure on the rental of temporary accommodation fell significantly to €39 million, a saving of €14 million over 2008.

One change in policy that has been implemented is to grant aid the purchase (rather than rental) of temporary accommodation where the need for such accommodation is likely to exist for more than three years. Furthermore, since July 2008, it is my policy to offer schools being approved for grant aid for temporary accommodation the option to use their capital grant aid to build a permanent classroom(s) rather than purchase a prefab.

These policies will reduce the usage of temporary accommodation and, particularly, the incidence of long term rental of prefabs and have contributed to the saving of €14 million on annual expenditure on rental of temporary accommodation in 2009 as compared to 2008.

In addition, my Department has engaged a specialist firm to develop new procedures and systems for the provision of temporary accommodation with a view to achieving best value for money. Work is well under way and the firm of specialists is working closely with officials in the Planning and Building Unit of my Department. The review incorporates the development of standard specifications for temporary accommodation, the development of new contractual terms to incorporate buy-out and relocation options to cater for individual local circumstances and appropriately protect the interests of the Department and school authorities. My Department has received a draft of a new contract for the provision of temporary accommodation which is currently under consideration. The work on the development of standard specifications is also well advanced.

Another strand of the review is negotiations with prefab suppliers to buy out existing rental contracts or reductions in annual rent, as appropriate. An initial group of 46 schools with rented prefabricated accommodation has been identified for priority negotiations with suppliers to buy out existing rental contracts. A number of these prefabs have now been bought-out and negotiations are ongoing with a view to ending rental contracts for as many schools as possible in 2010. In the meantime, schools proposing to rent temporary accommodation must seek competitive quotes from suppliers which should allow them to take advantage of competitive market prices.