O’Keeffe underspends on schools by €140m

MORE than €1 million targeted for school buildings went unspent every working day last month, putting Education Minister Batt O’Keeffe €140m behind targets on capital spending this year.

The minister promised last month – after it emerged he only spent €455m of his €841m capital budget up to the end of September – that his department plans to spend its allocation for the year. At that stage, it was €112m or 19% behind the planned €568m spend for the first nine months of 2009.

But the situation has worsened a month later, with only €68m of the €96m budgeted for capital projects in October paid out. The additional €28m underspend brings the total underspend against targets to 21.2%, and leaves Mr O’Keeffe €140m short of the €664m he had expected to spend up to the end of last month.

Despite having €318m – or 38% – of his entire capital budget for the year left to spend in the last two months, the minister again insisted last night that he intends to spend the full allocation. But his spokesperson said it is not expected that any large-scale projects will be announced until early next year, despite the massive underspend.

“The reduced spending is due to improved tender prices, some outstanding bills have yet to be received and some buildings have been slow going on site. The minister plans to spend all the money in his capital budget on capital projects with the option of carrying up to 10% over to 2010,” he said.

Irish National Teachers’ Organisation incoming general secretary, Sheila Nunan, said it was indefensible that Mr O’Keeffe failed to spend more than €1m every working day in October on badly needed buildings.

“Nearly one-in-three primary schools needs major building works and it beggars belief that more than 20% of the annual building fund is unspent,” she said.