IPPN

Published: 26 March 2009

Source: independent.ie

By Michael Brennan Political Correspondent


Thursday March 26 2009

NEW school buildings are set to bear the brunt of the Government's €2bn capital spending cuts in next month's emergency budget, the Irish Independent has learned.

Long-awaited primary and secondary school projects are in the firing line after it emerged that 70pc of the funding earmarked for Department of Education capital spending has not been committed.

Although the Government has consistently emphasised the importance of 'labour-intensive' school building projects, the cutbacks put the education capital budget in peril.

Finance Minister Brian Lenihan has pledged to cut €2bn from an overall capital spend of of €8bn that is budgeted but has not been committed.

This puts any project where a contract is not signed in the firing line, which the opposition says could lead to a "day of devastation" for schools in next month's emergency budget.

The Irish Independent has learned that just €278m of the €904m education capital budget for education is contractually committed.

This means just 30pc of that capital funding is guaranteed to be spent. By comparison, most other Government departments have nailed down 80pc of their capital funding with legally binding contracts. The percentage is even higher in Agriculture, where 99pc (€452m of the €454m) of the capital budget is contractually committed.

Among the other major Government projects which remain uncommitted are the National Concert Hall, the National Children's Hospital, the Thornton Hall super-prison and three decentralised offices in Portlaoise, Mullingar and Carlow.

The revelation comes as Taoiseach Brian Cowen admitted yesterday the Government is planning to borrow more to plug the hole in public finances.

Labour party finance spokeswoman Joan Burton last night said: "If the Government cuts back the uncommitted spending in the capital programme, my fear would be that a lot of the school projects would be in jeopardy."Only 43 school building projects have guaranteed capital funding for this year, with another four secondary schools being built using the public-private partnership model.

These schools were announced earlier this month by Taoiseach Brian Cowen and are all located in his Laois-Offaly constituency -- in Bannagher, Ferbane and Portlaoise (two schools).

Around €656m of the total education capital budget is dedicated to primary and secondary school building projects, with the remaining €248m mainly going to the third-level sector.

Ms Burton said it made no sense to cut back on school building projects because they were a key method of generating construction jobs.

Education Minister Batt O'Keeffe had promised that his school building programme would deliver 3,300 jobs this year, based on the principle of one job per €255,000 of investment. But if two thirds of the capital budget is scrapped, 2,300 of these jobs will fail to materialise.

Devastation

Meanwhile, Mr O'Keeffe yesterday told the Dail he would spend €48m this year on pre-fab accommodation for schools.

Fine Gael education spokesman Brian Hayes said the department had made a "complete dog's dinner" of the school building programme by failing to sign contracts in time.

"Given their commitment to spend on schools and get builders back to work, it would be an absolute day of devastation for schools if this money was now to be lost," he said.

A spokesman for Mr O'Keeffe was unable to guarantee that the school capital budget would be left untouched.

"I wouldn't be speculating on any discussions around expenditure he said.

Traditionally, the second round of school building is announced at Easter to coincide with the teachers' unions conferences -- often dominated by complaints about crumbling school buildings and draughty prefabs.Sinn Fein North West MEP candidate Padraig Mac Lochlainn saidconditions in the school were "completely unacceptable".

- Michael Brennan Political Correspondent