asked the Minister for Finance if he is aware that some secondary schools in Dublin are finding great difficulty in getting finance for new school buildings and extensions; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Dublin Secondary Schools.
15.
I have been aware that, for some time past, owing to the heavy demands for capital in both the private and public sectors, many secondary school authorities, not only in Dublin, but throughout the country, have been finding it difficult to raise capital for new buildings, extensions or replacement of obsolete schools and that more definite arrangements for the provision of this capital were essential to ensure that the Government's policies, for raising educational standards and giving the widest possible opportunities for post-primary education, would be achieved.
Accordingly I arranged for a comprehensive discussion of the problem by representatives of my Department, the Department of Education and the banks. As a result of these discussions, a total sum of £4 million will be made available for secondary school building in the present financial year. Towards this sum, the banks have agreed to make a special joint contribution of £2 million; the balance will be supplied by the Exchequer from its general resources. I intend to make suitable arrangements for the provision of an appropriate amount of capital for secondary schools in 1968 and later years.
Until 1964 secondary school authorities had themselves to raise and repay the full building costs without specific aid from public funds. The 60 per cent subsidy of the loan charges then introduced by the Government but since increased to 70 per cent will in effect, continue to apply in the new circumstances. For instance, if a school requires £100,000, the State will provide £70,000 as a direct grant, leaving only £30,000 to be repaid by the school authorities over a period of 15 years.
As regards the actual issuing of this money for individual school building projects, I should like to explain that a new procedure is being adopted. I have agreed with the Minister for Education that his Department will act as a central agency which will receive and process all applications for building funds for secondary schools. When a building scheme has been approved, the Department of Education will itself issue the necessary funds as and when required. In other words, the money will be provided directly by the Department and not, as heretofore, by the banks or other lending institutions.
Hear, hear.
Because of the large number of school building projects which have to be undertaken and their high aggregate cost, the Department of Education will have to arrange an order of priority. This will ensure that the available funds are used to the best advantage and that help will be given where it is most needed.
Could the Minister say whether the discussions which have taken place included a discussion on the problems of servicing existing debts on schools recently built which have opted into the scheme?
That is a matter for the Minister for Education. I was concerned only with the fact that many of those whose responsibility it was to provide secondary school places——
I thought the Minister was going to say the question he asked Deputy Dowling to put down.
Deputy Dowling does not need anyone to tell him what to do.
An inspired question. The Minister's Athlone speech got no publicity. It is a wonder he did not get in the television cameras to announce it.
Many of the school authorities said to the Government: "When we go to the banks looking for money to build, we cannot get the credit," and the result of those tripartite discussions is that we have now this scheme whereby the capital will be made available to build new schools or extend existing ones.
How does the Minister distinguish between the finance that is needed and in fact used for capital purposes and the finance directly needed for capital purposes? He said that was the responsibility of the Minister for Education.
I am concerned with the provision of capital for new work.
And to hell with those who have done the job.
Those who have already undertaken capital expenditure since 1967, the Deputy should remember, are already in receipt of a grant of 70 per cent of the loan charge. This will continue.
The 30 per cent must be put up from pupils' fees which will not be available this year——
Whether they decide to opt for the new scheme is their own business. I presume they will not unless they can afford to.