I welcome the opportunity to meet the members of the Select Committee on Education and Science to discuss the Supplementary Estimates for the Department of Education and Science for 2004. The amounts required for the Education and Science are as follows: subhead B.8 — Youth — €532,000; subhead B.24 — Redress — €33,395,000; subhead C.8 — Special Needs Assistants — €5,000,000; subhead C.11 — Superannuation of Primary Teachers — €29,127,000; subhead D.4 — Superannuation of Secondary, Comprehensive and Community School Teachers — €13,490,000; subhead D.7 — Superannuation Payments to Local Authorities — €8,483,000; subhead G — Increase in Appropriations-in-Aid — €20,000,000, giving a required total of €70,027,000.
These Supplementary Estimates mainly arise for the following reasons. Subhead B.8 requires a technical supplementary allocation arising from its grant-in-aid status. It deals with the local drugs task forces which were set up to facilitate a more effective response to the drugs problem in areas experiencing the highest level of drug misuse. A total of 36 local drugs task force projects were allocated to my Department in 2001 but the 2004 allocation does not meet their full requirements due to increases under the national wage agreements, salary increments, insurance premiums and other programme costs. An additional sum of €532,000 is required arising from the need to meet local drugs task force financial deficiencies and to ensure proper support for all task force projects under the control of my Department.
The bulk of the Supplementary Estimate request relates to demand led subheads. I will deal with each of them in turn.
Subhead B.24 deals with the operation of the residential institutions redress scheme. The bulk of the expenditure involved is the cost of awards to persons abused as children while resident in industrial schools and other institutions subject to State regulation or inspection. An additional sum of €33.4 million is required to meet the cost of redress claims to be processed during 2004.
When the Estimate was formulated in mid-2003, precise information was not available on the anticipated number of claimants in 2004. Due to the work of the redress board proceeding at a faster than anticipated pace, it is necessary to seek a supplementary sum of €33.4 million to pay the claims processed and to be processed by the board before the end of 2004 which were not originally expected to arrive until early 2005. When this supplementary request was initially framed in early November, an amount of €23.4 million was sought but due to a higher than anticipated volume of awards being cleared by the board in recent weeks, it became necessary to increase the supplementary amount by €10 million to €33.4 million.
Special needs assistants perform an array of non-teaching duties in schools to assist pupils with special needs. An additional sum of €5 million is required to meet the increased cost of special needs assistants in primary schools. This additional funding is necessary to enable my Department to continue to honour our commitment to children with special needs. Since taking office the Government has undertaken an unprecedented level of development in special education services. In October 1998 it took the unprecedented step of declaring that all children with special needs within the primary system should henceforth have an automatic entitlement to a response appropriate to their needs. The Supplementary Estimate is required to fund the extra costs associated with increased numbers of special needs assistants this year, with some additional costs associated with the operation of the part-time work legislation and other pay related industrial relations issues.
The remainder of the gross element of the supplementary amount relates to the following pension subheads: subhead C.11 — superannuation of primary teachers, €29,127,000; subhead D.4 — superannuation of secondary, comprehensive and community school teachers, €13,490,000; andsubhead D.7 — superannuation payments tolocal authorities, €8,483,000. The supplementary amounts for pensions totalling €51.1 million arise from considerably increased numbers of pensions and gratuities awarded during 2004. In recent years the number of teacher retirements has in general shown a marked increase and once a teacher has completed the necessary service or reached the appropriate age, he or she is only required to provide three months notice of intention to retire which makes it difficult to accurately estimate retirement patterns.
I am seeking an increased supplementary amount in the appropriations-in-aid subhead. The increased receipts relate to payments received in respect of the European Social Fund from the 1994 to 1999 round of funding. The closure of the 1994 to 1999 round of funding was protracted and the payment date for the receipts had not been set when the 2004 Estimates were finalised. An additional €20 million in receipts is anticipated before the end of 2004. The best information available to me at this stage indicates that the Department of Education and Science should receive surplus ESF receipts totalling an additional €50 million before the end of the year. However, my Department cannot be totally assured of receiving these funds before the end of the year. Therefore, for prudential reasons, the increasing supplementary amount being sought is €20 million which has already been received. However, should the level of additional receipts received be of the order of €50 million extra, as is most likely, although not absolutely certain, it will have the effect of reducing the net cost to the Exchequer of the Supplementary Estimate to a relatively minimal sum.
The Government has made education a top priority for its term of office and these Supplementary Estimates are further evidence of our commitment to the sector. They will serve as an excellent foundation for further improvements which we will be able to implement in the coming years. I commend them to the committee.