50% cut in fee-paying schoolgrants proposed

THE DEPARTMENT of Finance backed a 50 per cent cut in the State’s annual €100 million support for fee-paying schools in its submission…

THE DEPARTMENT of Finance backed a 50 per cent cut in the State’s annual €100 million support for fee-paying schools in its submission to the McCarthy group earlier this year.

It also backed the return of full college fees pointing out that 28 per cent of those benefiting from free fees at present come from homes with incomes in excess of €80,000 per annum. And 15 per cent goes to households with income in excess of €100,000 per annum.

In its submission to McCarthy – published on its website last night – the Department of Finance also backed the abolition of the school transport service at second level and the phasing out of funding for three “minor” teacher training colleges – Marino, Froebel and the Church of Ireland College of Education.

On fee-paying schools, it says savings of €47 million could be achieved by significantly increasing the staffing schedule for fee-paying schools as compared with non-fee-paying schools, to the level where one teacher was only provided for every 38 students, as compared with one for every 19 students in non-fee-paying schools. At present the State pays teachers’ salaries in fee-paying schools.

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While the McCarthy report did not endorse these proposals, the Department of Finance paper is certain to revive controversy about State support to the 50-plus fee-paying schools which charge more than €5,000 a year in fees.

The department is also critical of work practices in the institutes of technology where, it says, there are now staff that are paid for considerably more hours than they actually teach.

The Department of Finance also backed:

A reduction in the number of language-support teachers from 1,500 to 1,000;

A cut in the main capitation grant for primary schools by 22 per cent, from €200 per pupil to €163.58 bringing the level back to that which existed in 2007. This would yield savings of €25 million. Increasing the staffing level in secondary schools from one teacher for 19 pupils to 20. It acknowledges this would restrict subject choice in schools.

Cuts in the number of VECs from 33 to 22, a cut also backed by the Mc Carthy report.

On fees, the department argued for their return from this autumn for all students not in receipt of student support at present. Potential savings, it said, were up to €153 million by 2012.

The department also wanted to reduce the level of funding for research and development from €89 million to €66 million and to reduce funding for the Strategic Innovation Fund for third-level colleges to €15 million a year.

On school transport, it says a move to abolish a publicly funded school transport system at post-primary level would save up to €58 million within three years.

It also backed an increase in the the school transport fee charged to a level that would cover the full economic cost of providing the service.

It says the department should provide transport only to the nearest school, and not to a school of choice.

Other suggested cuts

Among the non-education cuts suggested by the Department of Finance were:

The closure or downgrading of inefficient hospitals to save €500 million.

Charging older people for the full cost of home help and home care packages. This would save €300 million a year but it was deemed a high-risk proposal.

Welfare rates should be reduced next year to reflect reductions in the cost of living.

A detailed examination of the Army's ministerial air transport service.

For more details: http://bit.ly/10lYPi