Speech by Minister Mary Hanafin at a post-budget education briefing on
6 December, 2007

You will all be aware from the Tanaiste's speech yesterday of the context for next year's Budget and the importance that the Government places, in this period of more moderate economic growth, on carefully managing the public finances so that improvements can be sustained into the future. In this context, the provision of over €690 million more for 2008 than was available after Budget 2007, is significant.

Overall, education expenditure will rise by 8% to €9.3 billion next year. This will enable us both to consolidate the major service improvements that have been put in place in recent years and to make further progress in a wide range of areas.

I am glad to have the opportunity to outline for you this morning how this investment will benefit each sector of education next year.

€830 million in Capital Investment

Let us start with capital investment, which will amount to almost €830 million in 2008, with almost €600 million for school buildings in 2008, and €95 million extra for primary schools.

The Pre-Budget Outlook published by the Tánaiste last month provided €295 million for primary school buildings next year. This has been increased by more than 30% in the Budget to €390 million.

The direct exchequer post-primary capital allocation of over €204 million will be boosted by the Public Private Partnership Programme, which predominantly features the delivery of second level school buildings.

Between both sectors, almost €600 million in public funding is being provided for school buildings next year. This will enable:

• The completion of construction work on up to 200 projects to provide over 8,000 additional permanent school places;
• A phased roll-out to construction throughout 2008/early 2009 of over 350 projects that will, when complete, provide another 12,000 additional permanent places;
• The purchase of sites to facilitate the smooth delivery of the school building programme particularly in rapidly developing areas;
• The progression of further projects through architectural planning and design stages.

I intend to announce in January the first tranche of projects that will be proceeding to construction, with further announcements throughout the year as the school building programme is rolled out.

Construction is also due to start in 2008 on the first bundle of PPP schools, while further ones will be offered to the market next year with a view to building work commencing in later years.

While there will continue to be a focus next year on providing extra places in developing areas, we will also be delivering improvements in the quality of existing primary and post-primary school accommodation throughout the country. The emphasis, however, will be on new schools, extensions and major refurbishments, rather than on smaller projects.

As you will be aware, the Summer Works programme and the Small Schools Scheme have, since their introduction just a few years ago, transformed the standard of existing school accommodation. With almost 3,500 projects now having been funded under these schemes, my intention is to focus the significant extra investment in school buildings next year on delivering as many large projects as possible. There will not, therefore, be a new Summer Works Scheme as part of our building programme in 2008.

The level of investment in school buildings has never been greater. And with €4.5 billion to be invested in this area under the National Development Plan over the next few years, further significant progress will be made.

€190 million for Higher Education Capital represents more than a 20% increase.

Considerable extra capital investment is also being provided next year to improve the physical facilities in our higher education colleges. Expenditure in this area will increase by more than 20% to €190 million in 2008 and will, as I will outline later in more detail, help to improve facilities in colleges throughout the country.

Major improvements in physical accommodation will, therefore, be enabled across all sectors next year. This is in line with the Government's overall focus on improving our national social and economic infrastructure.

€8.5 billion in current spending

Let us turn now to current spending, where €8.5 billion is to be invested in 2008.

The biggest item here is of course the pay budget for the approximately 90,000 people employed across the education system as teachers, special needs assistants, lecturers, adult literacy tutors and other staff.

€4.6 billion - €380 million extra - for Teacher Pay & Pensions

In fact, €4.6 billion will be spent next year on teachers' salaries and pensions alone - an increase of over €380 million on the 2007 Estimates provision. This includes the cost of pay increases under the Towards 2016 social partnership agreement.

Approximately 1,100 extra primary and post-primary teachers have been put in place this school year. We are also planning for about 1,200 more for the 2008/09 year.

As I have said on many occasions in the past, high quality teachers are by far the most important ingredient in our education system. The record increases in teacher numbers in recent years have been absolutely unprecedented.

In the primary sector alone, there are now in the region of 6,000 more teachers on my Department's payroll than there were in 2002. Extra teachers have been provided in the 2006/07 and 2007/08 school years specifically to reduce class sizes in our primary schools. The number of teachers working in the areas of language support and special needs has also increased significantly.

The Programme for Government contains a commitment to provide a further 4,000 primary teachers by 2012. With the additional teachers already put in place this year and those provided for in the Budget, we are ahead of target with about 2,000 extra primary teachers to be delivered within just two years.

Primary school enrolments are projected to increase by 13,000 next September. The extra primary teachers provided for in Budget 2008 will cater for the mainstream teaching needs of these extra children and will also help to improve services in areas such as special education.

A 21% increase in funding for the primary teacher training colleges is also being provided in order to significantly expand the number of places on the Post-graduate Diploma in Primary Teaching from next February. This will ensure an adequate supply of qualified primary teachers in order to meet the Government commitment to reducing class sizes in future years.

€900 million for Special Education - almost double the 2004 level

Another area where investment will increase significantly in 2008 is that of special education. There are now about 17,000 adults in our schools working solely with children with special needs - compared to just a fraction of this a few years back. The procedures for accessing extra support have also been improved considerably with the introduction of a guaranteed level of resource teaching hours for all primary schools and the establishment of the National Council for Special Education.

Next year, expenditure on special education will exceed €900 million for the first time. This is €80 million more than was announced for 2007 this time last year and almost twice what was spent on this area in 2004.

This increased investment will

• enhance our capacity to deliver special education services in the context of the implementation of the Education for Persons with Special Educational Needs Act. 
• meet the full year cost of the extra Special Needs Assistants and resource teachers put in place this year and provide for about 900 more special needs staff in 2008; 
• provide for continued investment in training for teachers in special needs education;
• cover the costs of more than 275 special classes for children with autism around the country; 
• fund extra staff for the National Educational Psychological Service so that the number of NEPS psychologists can increase from 134 at present to 169 in 2008.

It should be noted that the allocation for NEPS represents an increase of 13% on the forecasted expenditure level for 2007. €17.7 million was originally set aside for NEPS this year to allow for the recruitment of extra psychologists. The recruitment process has, however, taken longer than expected and, while it is currently underway, some of the extra posts will not be filled until 2008.

€800 million dedicated to tackling educational disadvantage

In addition to improvements in special education, targeted supports for young people from disadvantaged communities are also a major Government priority. The Budget provides more than €800 million for measures aimed at combating educational disadvantage at all levels. This represents a 10% increase on the 2007 Estimates provision and a 75% increase on the 2003 allocation.

This investment will support a wide range of valuable services - including pre-school interventions, early literacy initiatives, and measures to improve school attendance and tackle early school leaving.

It will also support programmes in the youth sector aimed at the social and personal development of young people, measures aimed at improving access to third-level, and initiatives which provide "second chance education" for young people and adults.

The Government is determined both to improve attainment levels in schools serving disadvantaged communities areas through the DEIS Action Plan and to enable those who have left school early, or have limited formal training, to return to education.

In 2007, 400 extra places have been provided in Youthreach, 1,000 on the Back to Education Initiative and 3,000 on adult literacy courses. The 2008 allocation not only covers the full year cost of these, it also allows for 100 more places in Youthreach, 500 more on the Back to Education Initiative and 500 more in adult literacy programmes. 

Increases in day-to-day funding for schools

The Budget also includes provision for improved day-to-day funding for schools.

The primary capitation grant will increase by €15 to more than €178 per pupil to give schools more money to cover expenses such as heating, lighting and insurance. The ancillary services grant will also be improved by €6 to €151.50 per pupil, giving primary schools more money to cover the cost of secretaries and caretakers.

Taken together, these increases mean that primary schools eligible for the full ancillary services grant will get €330 per pupil - or €21 extra - next year to cover their day to day running costs, with a primary school of 300 pupils getting €6,300 more. In fact, this 300 pupil school will get almost €100,000 from my Department next year to meet such costs.

At second level, capitation will also increase by €15 to €331 per student, while the support services grant will increase by €5 to €117. In addition to this, an extra €10 per student will be given to the voluntary schools to continue the process towards equalisation of funding measures for that sector.

Voluntary schools will thus get €535 per student, with a typical 500-student school getting €267,500 in 2008 to meet their day-to-day costs, outside of teacher pay which is of course also covered by my Department. 

Capitation will also be increased by 4% for Youthreach, Senior Traveller Training Centres and VTOS centres.

School Transport

We now move on to school transport, an area where considerable progress has been made in recent years. Three-for-two seating has been phased out, all vehicles in the service are now fitted with safety belts, and a number of campaigns have been organised highlighting the safety message on, and in the vicinity of, school buses. The very significant ongoing cost of such improvements is reflected in the 6% increase in the Budget allocation for this area next year.

While the provision for school transport has grown very substantially in recent years, the charges payable in respect of pupils availing of those services have not been increased since 1998. In order to reflect inflationary increases in the interim, and to help alleviate pressure on school transport costs, it is proposed to increase the charges with effect from the final term of the current school year, which begins after Easter 2008.

The new per-term charges will be as follows:

• €46 for junior cycle students;
• €71 for senior cycle students;
• €36 for concessionary primary pupils; 
• €71 for concessionary post-primary students.

A maximum family charge of €150 per term will apply.  

Primary pupils who are entitled to school transport by virtue of the distance to their nearest school will still not have to pay for it. Eligible post-primary students from families with medical cards will also continue to be exempt from charges. I should also point out that even with the increases being put in place, charges will only cover about 5% of the cost of the school transport service.

Minister Haughey and I are determined to ensure that we continue to build on the progress that has been made in school transport in recent years and these changes in the rates are required in order to do so.

Higher Education

We will turning now to higher education, where the Budget provision will reach almost €1.9 billion next year.

Recent years have witnessed significant improvements in support for our universities and institutes of technology, reflecting the priority accorded by Government to the reform and development of the sector and to the creation of world class excellence at fourth level.

• Core funding has increased significantly;
• A Strategic Innovation Fund has been established to promote reform and development;
• Priority has been given in both the Strategy for Science, Technology and Innovation and the NDP to increasing Ireland's research capacity;
• A unified strategic framework for the sector has been put in place;

Next year will again see record levels of investment in higher education.

As I mentioned earlier, capital investment will increase by more than 20%, to €190 million. This includes €6 million for the Grangegorman Development Authority, to enable it to complete the development of a master plan for the Grangegorman site, which will incorporate the largest third level campus in the country when the Dublin Institute of Technology moves there.

I also intend to announce shortly the bundling arrangements for the third level projects to be delivered through Public Private Partnerships (PPP). Pre-procurement of the 1st Bundle will commence immediately thereafter.

The Budget also includes an extra €61 million in core funding for the universities and institutes of technology. This is intended to enable them to continue to train high quality graduates across a wide range of disciplines, while also meeting key skills needs and supporting reform in areas such as medical education.
 
The full year cost of the very significant improvements made this year in the third level maintenance grant rates is also provided for with a 9% increase in funding for the student support schemes. Students on the 'ordinary' rate of grant have received an increase of 10% or twice the rate of inflation, while those on the special or 'top up' rate are benefiting from an even more substantial increase of over 14%.

The €40 million allocation for the Strategic Innovation Fund in 2008 reflects the fact that the multi-annual investment package is now expected to be spent over a longer period, given the fact that drawdown to date from his new programme has been somewhat slower than anticipated.  I recognize that the SIF is an important instrument for change in the sector and I expect to be in a position shortly to announce the awards under Round 2.
 
An additional €12 million or 13% will also be provided next year for research in third level institutions to enable them to build on the progress already made in meeting the ambitious targets set out in the SSTI.  It is worth noting as a sign of how far we have come in this area that the total allocation of €106 million for 2008 represents a doubling of current funding for research since 2004.

I will be announcing details shortly of a new scheme of capital investment in existing research facilities, under which €58 million will be made available in 2008. This will be separate from the Programme for Research in Third Level Institutions, Cycle 5 of which will focus on funding the development of new research facilities.

Conclusion

To conclude, the extra €690 million being provided for education in 2008 will enable us to consolidate the major service improvements that have been put in place in recent years. It will also provide for further progress in a wide range of areas.

• Almost €600 million will be invested in school buildings;
• Approximately 1,700 extra teachers and special needs assistants will be put in place;
• Expenditure on special education will increase to twice the 2004 amount;
• €800 million will be spent on tackling educational disadvantage;
• Schools will get increased funding to meet their day-to-day running costs;
• Capital investment in our higher education colleges will rise by more than 20%; 
• An extra €12 million will be provided for research to ensure that Ireland is well-placed to develop the technologies, processes and products that will be central to our future social and economic success.