Dáil Éireann Debate, Tuesday - 16 December 2014
557. Deputy Jonathan O'Brien asked the Minister for Education and Skills the education and training boards currently in receipt of overdraft facilities and their value; the education and training boards which have notified her or her Department of their intention to apply for overdraft facilities; the stage at which these processes are currently; and her plans to address the deficits in funds of the education and training boards in question. [47818/14]
Amharc ar fhreagraSection 49 of the Education and Training Boards Act, 2013, confers a power of borrowing on an Education and Training Board (ETB), subject to the submission of a proposal to the Board, and if approved in principle by the Board, to the Minister for Education and Skills for consent. My Department has issued Circular 0066/2014 to ETB, concerning the procedures to be followed where an ETB wishes to borrow. A copy of the circular is provided for the Deputy's information.
Overdraft facilities should be avoided except for limited periods to meet short term cash-flow situations. They are not to be used for capital expenditure and cannot be used to extend an ETB's expenditure and commitments over and above the amounts authorised by my Department. In the current year thirteen of the sixteen ETBs have sought and obtained approval for borrowing from my Department. The value of the facility which will be required for one of these (Kilkenny Carlow ETB) is still being determined. The remaining ETBs and the limits to which they have sought consent to borrow are as follows:
|
ETBs |
Amount |
|
Cavan and Monaghan ETB |
€1,975,000 |
|
Cork ETB |
€1,245,874 |
|
Donegal ETB |
€1,500,000 |
|
Dublin and Dún Laoghaire ETB |
€5,000,000 |
|
Galway and Roscommon ETB |
€2,000,000 |
|
Kerry ETB |
€1,000,000 |
|
Laois and Offaly ETB |
€3,300,000 |
|
Longford Westmeath ETB |
€1,000,000 |
|
Louth and Meath ETB |
€5,000,000 |
|
Mayo, Sligo and Leitrim Tipperary ETB |
€2,000,000 |
|
Tipperary ETB |
€2,000,000 |
|
Waterford and Wexford ETB |
€3,000,000 |
The requests received have been precautionary in nature and designed to anticipate cash flow problems which may be experienced by the ETB. The Department is not presently aware of any ETB that has had to avail of this facility.
|
BOO – Airgeadas agus Pearsanra Riaracháin |
ETB Financial and Administrative Personnel |
|
An Roinn Oideachais agus Scileanna |
Department of Education and Skills |
|
Cor na Madadh |
Cornamaddy |
|
Baile Átha Luain |
Athlone |
|
Co. na hIarmhí |
Co. Westmeath |
Circular 0066/2014
To the Chief Executives and Chairpersons of Education and Training Boards
Procedures for Borrowing by Education and Training Boards
The power to borrow money is a reserved function of an ETB Board. Section 49 of the Education and Training Boards Act 2013 sets out the procedures to be followed, which are summarised as follows:
1. The Chief Executive prepares and submits a proposal in writing to the Board that the Board should borrow for the purposes of carrying out the board’s functions.
2. The Board considers the proposal and then, if it is decided in principle that the proposal should be accepted, seeks the consent of the Minister for Education and Skills.
3. Once the consent of the Minister has been obtained, the Board may accept the Chief Executive’s proposal and borrow in order to carry out the functions of the board.
Accordingly, two meetings of the Board will be necessary; one to first consider the proposal and, if it is decided in principle that the proposal should be accepted, a second to accept the proposal, having obtained the consent of the Minister. This Circular should be read in conjunction with Section 49 of the Act. This circular can be accessed on the Department of Education and Skills web page: www.education.ie. Any queries regarding this circular letter should be addressed to ETB Financial and Administrative Personnel Section (Tel: 09064 83769, Fax: 09064 84058, Email: financialetb@education.gov.ie).
Matthew Ryan
Principal Officer
Schools Division
August 2014
