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Dáil Éireann debate -
Wednesday, 13 Mar 1991

Vol. 406 No. 4

Ceisteanna — Questions. Oral Answers. - Lost Capitation Grant Cheques.

Jim Higgins

Question:

15 Mr. J. Higgins asked the Minister for Education the number of capitation grant cheques for secondary schools which were posted by her Department at the end of January 1991 and allegedly mislaid in the post; the total value of the cheques; and if she will make a statement on the matter.

Tom Enright

Question:

49 Mr. Enright asked the Minister for Education if she will outline the current position in regard to cheques which were posted from her Department to various schools around the country and lost; the number of cheques involved; the amount of each cheque and the date of posting; the schools to which they were posted; whether the cheques have been found in the meantime; the checks she has made with An Post to ascertain what happened to the cheques and letters involved; whether this has happened before; and the steps she has taken to avoid a recurrence of same.

I propose to take Questions Nos. 15 and 49 together.

In February, following inquiries from schools to my Department, it became apparent that a large number of payable orders had not been received by the payees. On ascertaining that the payable orders in question were issued on 30 January my Department alerted An Post to the position and investigations were initiated to trace the missing payable orders. As a security precaution my Department cancelled all 225 payable orders issued on 30 January, including 195 relating to capitation grants. The individual value of the capitation payable orders ranged from £4,500 to £46,000 and amounted in total to £3.85 million.

I do not propose to identify the individual schools involved — because they would not wish it — and the amount of grant in each case.

The Irish Banks Standing Committee were also informed of the cancelled orders and given the serial numbers involved. None of the missing payable orders has been cashed. Fresh payable orders issued some time ago to the payees in question.

My Department have remained in close consultation with An Post on this matter. Inquiries to date have not traced the missing orders but they assure me they are continuing their investigation.

My Department are considering the electronic transfer of cash to schools' bank accounts. However, this would give rise to certain difficulties. We are at present examining this matter.

I thank the Minister for agreeing the need to update and streamline general procedures by direct lodgments. Is the Minister aware that capitation grants are supposed to be paid in January, April and October each year; that the October grants were not paid until November; that the January grants were not paid until end February — even though the Department knew about the missing cheques on 4 February — and that, by and large, this has become established procedure causing terrible hardship for schools leading to crippling overdrafts and interest payments?

The Deputy is quite right. We have been tardy in some instances in paying them, leaving aside the An Post matter, but in response to the Deputy's general question about capitation grants, there is now in place a very strict arrangement as to when these capital grants will be paid. This procedure will be followed for the remainder of this year.

Is the Minister aware that the survey conducted into the financing of secondary schools — this document I have in my hand here — which examined 145 secondary schools indicated that many schools are literally on the brink of collapse and that, unless the capitation grant is increased from its present level of £150 to £205, schools will actually go to the wall?

May I point out that I have increased the capital grant by double the amount paid by the Deputy's previous Coalition Government between 1983 and 1987.

Does the Minister accept that it is miles behind the inflation rate? The Minister knows that well.

If Deputy Higgins' remaining Priority Question No. 16 is to be dealt with, we must deal with it now.

What time did Priority Questions start, a Cheann Comhairle?

They began at approximately 3.11 p.m. and are due to conclude in a minute or two.

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