Written Answers. - Grant Payments.
Seán Crowe
Question:
169
Mr. Crowe
asked the
Minister for Education and Science
his views on whether the increases in per capita grants for primary and secondary schools have not kept pace with rising insurance costs; if he has plans to address this issue by increasing per capita grants, by setting up a specific fund for insurance for schools or by entering into negotiations with the insurance sector; and his views on whether a State insurance company along the lines of those set up in North America and New Zealand might help address this problem.
[14977/03]
I am not aware of the schemes in North America and New Zealand as referred to by Deputy. Responsibility for arranging insurance cover on school property and against public liability is a matter for the managerial authorities of primary and voluntary secondary schools, which are privately owned. Many reasons have been put forward by management authorities for the current insurance increases, ranging from school factors such as claims history, location, curricula offered, size of school and factors affecting the international insurance market. Per capita grants towards the operating costs of primary and voluntary secondary schools may be used for this purpose. Per capita grants have been increased significantly in recent years.
At primary level, the capitation grant has been increased has increased from €57.14, £45, in 1997 to €111.58 in 2003. This represents an increase of 95% in the capitation grant over that period. In the case of secondary schools, the standardper capita grant of €224.74 that applied in 1997 has been increased to €266.49 in this school year. For disadvantaged schools the increase has brought the per capita grant to over €300. In addition, secondary schools have benefited under the school services support initiative, since its inception some two years ago. This annual grant was increased by €10 per pupil from January last. This latest increase has brought the support services grant in the case of secondary schools to €127 per pupil from 1 January 2003. The increase is in addition to the range of equalisation grants of up to €15,554 per school, €44.44 per pupil, per annum that was approved for secondary schools also in the last two years.
Schools are afforded considerable flexibility in the use of these resources to cater for the needs of their pupils. In my view this is, in general, a preferable approach to putting in place grants for specific initiatives. Tackling the difficulties that are being caused by high insurance premiums is a clear priority for the Government and for my colleague, the Minister for Enterprise, Trade and Employment. A key concern to which the Minister is giving priority is the cost and availability of liability insurance. Although the Department of Enterprise, Trade and Employment is responsible for the supervision of insurance companies, EU law prevents Government from intervening in relation to premium levels or the risks that insurers are prepared to underwrite. However, Governments are free to take appropriate action, which could influence cost reduction by the industry. A comprehensive set of measures is contained in the agreed programme for Government, the underlying purpose of which is to bring about an improvement in the functioning of the insurance market and in the system itself.
In this context, last October, the Tánaiste announced a comprehensive programme for the fundamental reform of the Irish insurance market. Key initiatives in the reform programme include the establishment of the Personal Injuries Assessment Board, PIAB, and the publication of the action plan for the implementation of the recommendations of the Motor Insurance Advisory Board, MIAB. While the MIAB was essentially concerned with motor insurance, the recommendations also relate to other forms of insurance and to public and employer's liability in particular. The action plan reflects this.
The programme for Government also contains a commitment to remove unwarranted constraints on competition in all sectors of the economy. As part of this commitment, and complementary to the reform programme, the Department of Enterprise, Trade and Employment, in conjunction with the Competition Authority, is undertaking a study of competition in the insurance marketplace, with particular reference to motor, employers' liability and public liability insurance. Work on the study is in progress and it is envisaged that the bulk will be completed this year and that a report will be produced in the early part of 2004.
The Government considers that these measures, taken as a package, constitute a programme that is capable of delivering very real reform and that reductions in insurance costs will translate into significant reductions in premia.
