IPPN

Published: 18 December 2008

Source: Irish Examiner

DOUBTS have been raised about the four-year time scale in which Education Minister Batt O'Keeffe expects to have completed the latest group of schools built under a public private partnership (PPP) deal.

He announced yesterday that six second-level schools and one primary school each in Donegal, Galway, Leitrim, Waterford, Westmeath and Wexford are to be included in the third bundle of PPP schools to be funded by his department, catering for up to 4,800 students when they open.

But Labour party education spokesperson Ruairi Quinn questioned his target for delivery of the latest seven schools by late 2012, which Mr O'Keeffe said was subject to completion of the planning process.

Following a pilot PPP schools project completed in 2002, two groups of PPP schools announced in 2005 and 2006 now look set to take between four and five years to complete.

"In light of the crisis affecting the provision of school places in areas of high population growth, use of the strategic infrastructure legislation should be examined to avail of the fast-track planning approach it would allow," Mr Quinn said.

He said using PPPs was now probably the most expensive way to build schools, as they involve interest rates to private companies which are much higher than existing European Central Bank rates.

"With the massive turndown in the construction industry, one would have to question if reversion to this expensive off-balance sheet borrowing is the best way to go, given the need for the State to get value for money in a falling market," he said.

Mr O'Keeffe said one of the main advantages of PPP schools is that the principal is not involved on a daily basis in maintenance and caretaking issues, which become the responsibility of the contract holder.

The minister's spokesperson said procedures for the second and subsequent projects allow agreement of definitive deadlines with private partners up front, which will also help speed up delivery of the schools.