The Department of Education will have limited extra funding to upgrade dilapidated primary schools next year, despite securing a substantial overall increase in the Government spending Estimates.
Education will receive one of the biggest increase in spending when the Estimates are published on Thursday. But €375 million in benchmarking payments and other new costs means there will be little extra funding for school buildings, even at primary level where more than 500 schools require urgent repair or replacement.
However, in a major policy change on third-level funding, the Government yesterday indicated it will provide €140 million in State funding for research projects in third-level institutions. This followed sustained criticism from the universities and the Higher Education Authority.
The average increase across Government departments in the Estimates, which will outline the Government's spending plans for next year, is expected to be in the 5-6 per cent range. In some cases extra charges to the public may be introduced to limit the net cost to the Exchequer.
Education will fare significantly better than this, with some sources suggesting an increase of around 11 per cent. Last night the INTO said it was poised to activate its threat of strike action if the Estimates failed to deliver. A special meeting of its executive has been convened for next Thursday evening when the Estimates are published. The union says it is ready to begin a series of one-day strikes if the Estimates "fail to address the crisis ".
There is an indication, however, that there could be some better news for the primary sector in the Budget itself as it is understood discussions are continuing between the Departments of Education and Finance about various options for supporting capital projects.
The increase in the education estimate is one of the largest secured by any Department, but much of the increase will be absorbed by new spending commitments. These include:
• €375 million to pay for a 12 per cent increase in teachers' pay as a result of the benchmarking and national pay deals.
• €120 million in payments to the Residential Institutions Redress Board for victims of abuse.
• Substantial extra funds to allow for extra payments to part-time workers who have secured new entitlements.
The Minister, Mr Dempsey, had hoped to announce a new rolling, five-year school modernisation programme. But discussions on this with the Department of Finance have still to be finalised because of the tight budgetary position.
Mr Dempsey is under intense pressure from the INTO and Fianna Fáil backbenchers to upgrade hundreds of primary schools across the State. Despite pre-election promises, only 12 major projects were built last year.
Last year some €175 million was allocated to the primary-school building programme from a total budget of €5.8 billion. The INTO said Mr Dempsey's credibility in relation to the crisis in school buildings was on the line.
Despite the pressure from the primary sector, the Minister must also find money to fund the upgrade of science laboratories at second level. Earlier this year he told the TUI that its schools would have "first call" on building funds.
Overall, the pressure on public-sector pay will limit the increase in other areas in the estimates. Health is due to secure an above-average increase of €700 million or more.
Meanwhile, the Minister will seek to maintain capital investment spending at current levels as a percentage of Gross Domestic Product, and Mr McCreevy may indicate a move towards outlining a multi-year budget in this area, to remove the year-to-year uncertainty of the current system.