Calls to approve capital projects

Minister for Education Batt O'Keeffe has been urged to give the go ahead to essential capital projects in the school building…

Minister for Education Batt O'Keeffe has been urged to give the go ahead to essential capital projects in the school building programme after it emerged that the Department has yet to spend €396 million of its budget.

New figures showed just €455 million out of an €841 million capital allocation has been spent this year to modernise schools and provide new buildings.

Defending the figures, the Department of Education said the shortfall was due to savings in the cost of projects, and said many bills had yet to come in.

The Irish National Teachers Organisation (INTO) today warned the remainder of the budget may "fall into a black hole" and said there were projects that could commence quickly if given approval.

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Speaking on RTÉ radio this morning, general secretary of the teachers' union Sheila Nunan described the figures as "entirely astonishing" and said the outstanding bills would not cover the shortfall.

"Projects coming in cheap are of course something to be applauded. We're hearing it from our school principals that when they have retendered they're getting significantly lower costs coming through," she said.

"The obvious implication and consequence of that is that therefore the money goes further and the projects that are in the pipeline should be bumped up, accelerated and given the green light to go ahead."

Under rules for Department budgets, only 10 per cent of an annual budget can be carried forward. However, the figures indicate the underspend may be as much as 20 per cent.

However, Ms Nunan said investment in the school building programme was needed as it lagged behind what was necessary to cope with an increase in the primary school population in the coming years.

"There's clearly in the building business going to be a little bit of overrun from year to year, but our worry would be with the alarming financial circumstances that anything beyond a very low percentage of two or three per cent that should be carrying over, it should be very minor what's carrying over because there is a danger that money could fall into a black hole between last year and this year," she said.

Ms Nunan said one in three schools had projects ranging from small works projects to new builds waiting for clearance. However, officials in the building and planning section in Tullamore don't have the "clout" to sanction the projects.

"We've a number of schools...who are just waiting in the wings, waiting for political clearance, waiting to go ahead and it's excusable that they haven't got that," she said. "That money is budgeted, the need is there it should be spent, the value is there and indeed...the stimulus should be there for the builders in those communities. Under no circumstances should that money be diverted into anything else."

The Construction Industry Federation (CIF) said up to 4,000 jobs were at risk because of the under spend. CIF Director General Tom Parlon said there was concern that the capital programme was being wound down In Ireland when other governments were using increased construction spending to stimulate economic recovery".

"Any decision to delay or cancel projects has an immediate impact in terms of jobs and government revenues," he said.

"Every €100 million spent on construction projects generates 1,000 direct jobs and the net cost to the Exchequer is €49 million as a result of increased tax revenues and social welfare savings. Conversely, every €100 million cut from the spending programme results in 1,000 job losses and costs the Exchequer €51 million in social welfare payments and reduced taxes and spending. If you apply this calculation to the Department of Education's under spend this year at least 4,000 jobs are impacted and it will actually cost the State of the order of €200 million not to build the schools."

The Joint Managerial Body (JMB), which represents the management of almost four hundred Voluntary Secondary schools, said it was concerned at the under spend, particularly as many schools have been waiting years to upgrade what it described as inadequate school buildings.

JMB general secretary Ferdia Kelly said the report has caused "great frustration" across school communities.

"School management is forced in many cases to take on a long and challenging process which is littered with inexplicable set-backs and delays. Imagine how frustrated these people feel today when they reflect on the lack of progress of their project in the light of this serious under spend in the capital budget for 2009," he said.

The body called on the Minister for Education to ensure that the full capital budget for 2009 is spent.

Fine Gael's education spokesman Brian Hayes said the figures highlighted the "extraordinary and chaotic management" of the school building programme, and called for the Department to clarify its strategy.

"Historically, money's not spent in one year can go back in the Estimates Programme. It would be a scandal if this money was lost to education because it hasn't been spent. What's needed is a multi-annual building programme divorced from the party political considerations of the Minister for Education," he said.

The Labour Party said the failure to spend the capital allocation was a "betrayal of children and workers".

"There are compelling reasons, on a number of fronts as to why we should be spending this money on improving our school infrastructure. First and foremost, is the fact that thousands of children are being taught in prefabs classrooms or in buildings that are dilapidated, outdated and unsafe. These children deserve better and moreover in this year's budget were promised better," education spokesman Ruairí Quinn said.

"In addition, the longer it takes approval for school building projects to wind their way through the Department, the longer we are leaving unemployed bricklayers, electricians and plasterers on the dole queues."

He called for the introduction of a transparent system for deciding which building projects are given permission to commence.

"Schools have the right to know where they are on the list, and when they can expect to break ground. Getting basic vital information like this at present, is akin to getting details on the third secret of Fatima," he said.

Sinn Féin called for Mr O'Keeffe to resign his ministerial position, with education spokesman Pearse Doherty describing the situation as "ludicrous".

"Every single day we hear of schools desperate for new school buildings, with rotting prefabs and overcrowded classrooms. With winter setting in hard and fast what will be next? Will pupils be told to bring in a lump of coal each to heat the school?" he asked.

"Batt O'Keeffe, himself a former teacher, needs to take a long hard look at himself. He has spent the last year gearing up to sack teachers, axe classes for children with special educational needs and cutting grants to needy pupils. He now tells us that over half of his budget has not been spent.

"Batt O'Keeffe should be ashamed of himself. He has to go."

Ciara O'Brien

Ciara O'Brien

Ciara O'Brien is an Irish Times business and technology journalist