The Department of Education and Science requires a Supplementary Estimate of €51 million this year and I welcome this opportunity to meet with the members of the Select Committee on Education and Science to discuss the matter.
The specific subheads involved in the Education and Science Supplementary Estimate for 2005 are as follows: subhead B.26 — occupational health strategy for teachers, €1,000; subhead B.27 — payments under the Commission to Inquire into Child Abuse (Amendment) Act 2005, €510,000; subhead D.7 — payments to local authorities in respect of superannuation charges, €23.308 million; subhead E.4 — An tÚdarás Um Ard Oideachas, general current grants to universities and colleges and designated institutions of higher education, grant-in-aid, €1.29 million; subhead E.8 — Dublin Dental Hospital, dental education grant, grant-in-aid, €90,000; subhead E.15 — Grangegorman Development Agency, €1,000; and subhead G — appropriations-in-aid, deficiency, €25.8 million. That is a total of €51,000,000.
The Supplementary Estimate sought includes two token Supplementary Estimates of €1,000 each to allow expenditure on the new services involved. In the case of two grant-in-aid subheads, small Supplementary Estimates are sought to avoid any possible excess Vote. A technical supplementary sum is sought in regard to the Commission to Inquire into Child Abuse (Amendment) Act 2005 to reflect a legislative change. A substantial supplementary sum is sought for the increased cost of certain pensions and a supplementary is also sought to cover a possible shortfall in appropriations-in-aid due to payment timing issues. I will now outline in more detail the basis for the Supplementary Estimate in the case of each subhead involved.
Under subhead B.26, occupational health strategy for teachers, I am seeking a token supplementary sum of €1,000. This will allow expenditure on the agency to commence as soon as necessary rather than it being obliged to wait, as would be required with a new service, until mid-2006, when the 2006 allocation in the Estimates would be expected to have obtained Dáil approval. My Department has agreed with the teacher unions and school management groups that an occupational health strategy incorporating an employee assistance service for teachers should be developed. Accordingly, I have made provision of €2 million in the 2006 Estimates to begin this development.
The aims of an occupational health strategy will be to promote the health and safety of teachers at work with a focus primarily on prevention rather than cure. It is envisaged that such a service would incorporate health promotion in the workplace and counselling in such areas as relationships, bereavement, addiction, stress management and conflict resolution.
Regarding subhead B.27, payments under the Commission to Inquire into Child Abuse (Amendment) Act 2005, Dáil approval is being sought to provide that €510,000 would be paid, from moneys voted by the Oireachtas, as interest deemed to have been earned on an educational fund of €12.7 million for former residents of institutions for children and their families. The fund was provided in 2002 by the religious congregations under the indemnity agreement. When the money was received from the religious congregations in December 2002, it was lodged with the NTMA. When it became clear that there was no legislative basis for the investment of the fund, the NTMA returned the money to the Department of Finance and it was lodged in a sundry account of the Paymaster General, PMG. While this money did not attract overnight interest it, with all PMG accounts with positive balances, is swept overnight by the NTMA to offset borrowing by the State. Therefore, value was obtained, indirectly, for the funds involved.
The Commission to Inquire into Child Abuse (Amendment) Act 2005, which was enacted by the Oireachtas in early July this year, regularised the legislative position and provided for a board to administer an education grants scheme using the fund. Section 26 of that Act provides for the financing of the board's expenditure from an investment account to be managed by the NTMA. That section also requires the Minister for Finance to transfer an "appropriate amount" to the NTMA and prescribes that amount as made up of the following: the original €12.7 million provided by the congregations; an amount of €240,000 representing interest earned while the €12.7 million was invested by the NTMA; and an amount of €510,000 representing interest deemed to have been earned while the money was in the sundry account, to be paid out of moneys provided by the Oireachtas, minus expenditure incurred on an administrative scheme before the passing of the Act, which is a sum of €2.498 million. As the Act requires that the deemed interest of €510,000 be paid from moneys provided by the Oireachtas, I considered it to be appropriate and in the interests of transparency to have this sum of €510,000 voted as a Supplementary Estimate to comply with the stated legislative requirement regarding Oireachtas approval.
Subhead D.7 concerns payments to local authorities in respect of superannuation charges. I am seeking a supplementary sum of just over €23 million in respect of this service. The funding under this subhead is provided for local authorities that pay pensions and retirement gratuities to retired staff of vocational education committees and institutes of technology. A supplementary allocation of €23.308 million is being sought under this subhead to meet the expected additional costs that will arise due to the number of additional pensions and gratuities awarded being greater than provided for in the original Estimate. The level of retirements this year has been considerably higher than anticipated and, accordingly, the original provision was not sufficient to meet the costs of this service in 2005. The total number of staff in receipt of pensions rose by more than 300 to 4,010. This overall increase was greater than that which occurred in 2004, during which significant growth in retirement numbers also occurred as a result of the timing of benchmarking and other increases. The Supplementary Estimate of €23.308 million will enable my Department to meet the increased expenditure under subhead D.7 arising from a significantly higher number of pensions awarded.
Subhead E.4 concerns An tÚdarás Um Ard Oideachas, general current grants to universities and colleges and designated institutions of higher education, grant-in-aid. I am seeking a small supplementary sum of €1.29 million in respect of this subhead, which provides funding for the universities and some other third level institutions. The supplementary sum is sought to cover the cost of a pay award that may be required to be paid before the end of the year. As this is a grant-in-aid subhead, any expenditure in excess of the approved allocation would cause an excess Vote. Therefore, this additional amount is sought for prudential reasons. When the original Estimates were framed, the costs of this pay award were not factored into the sum required and hence the need for a supplementary to avoid a possible excess Vote.
Subhead E.8 concerns the Dublin Dental Hospital's dental education grant, grant-in-aid. As with the previous subhead, I am seeking a small supplementary sum of €90,000 to avoid a possible excess Vote on this grant-in-aid subhead. When the Estimates were originally framed, no amount was provided for a pay award which may be due for payment shortly in this institution and which cannot be met from within the existing allocation.
Subhead E.15 concerns the Grangegorman Development Agency. A Supplementary Estimate of €1,000 is required in 2005 in order to obtain Dáil approval to enable the establishment and work of the Grangegorman Development Agency, which is a new service, to commence in 2006. While the 2006 allocation for this new service is €1 million, approval of a token Supplementary Estimate will allow expenditure on the agency to commence as soon as necessary rather than it being obliged to wait, as would be required with a new service, until mid-2006, when the 2006 allocation in the Estimates would have been expected to obtain Dáil approval. The principal functions of the agency include, inter alia: the promotion of the Grangegorman site as a location for education, health and other facilities; co-ordination of the development or redevelopment of the site; engaging in the planning process; deciding the appropriate procurement strategy; arranging an appropriate communication strategy; and consulting with stakeholders and relevant interested third parties.
Subhead G concerns appropriations-in-aid. A supplementary sum of €25.8 million is required to cover the possibility that certain, mainly ESF, receipts will not be credited to the Department Vote before the end of the current year. The possible shortfall on ESF receipts is due to the uncertainty surrounding the timing of payments from the European Commission. The original allocation for the ESF aspect of this subhead in 2005 was €61.5 million. My Department has received payments from the European Commission amounting to €38 million in 2005 to date. Further ESF claims were submitted by my Department to the ESF managing authority — the Department of Enterprise, Trade and Employment — in September 2005. However, as it is not possible to guarantee with certainty that payment in respect of these claims will be credited to my Department's Vote before the end of the year, it is necessary to seek a decreasing supplementary of €25.8 million under this subhead. Receipts of €2.3 million in respect of repayments of secondments may also not be received before year end and, together with the possible ESF receipt shortfall, these make up the requirement for a supplementary of €25.8 million in appropriations-in-aid. If, as is likely, the ESF receipts actually arrive, the effect will be to increase my Department's surrender to the Exchequer at year end.
I have indicated the areas for which supplementary sums are required. I hope I have explained how most of the subheads are either token or technical Supplementary Estimates. Only that relating to additional pension requirements represents a substantial requirement. The ESF receipt requirement is only to provide cover in the somewhat unlikely event that the receipts fail to arrive in time.
I commend this Supplementary Estimate to the select committee. I will be happy to respond to any questions that members may wish to pose.