Department of Finance - Government of Ireland

Education Vote Group
Commentary

Overview:
The Estimates proposals submitted by the Department of Education & Science exceeded the Government pre-Budget target by over €1 billion - €387m excess on current and €686m on capital - representing a proposed 23% increase overall on the 2002 allocation. In the course of detailed discussion with the Committee, the Department agreed to measures to reduce the gap to €633m.

In the light of the significant remaining difference between the Department's position and the Government target, the Committee decided to use the Department of Finance’s proposals for achieving the pre-Budget target as a starting point in its consideration of this Vote Group. It then examined what additional pressures needed to be provided for and concluded that €107m would be required for this purpose.

The Committee identified additional measures which had the potential to generate a further €102m which would largely meet these pressures and achieve a pre-Budget allocation very close to the approved figure.

Additional Comments:
Third level fees - The most significant proposal put forward by the Committee is to introduce a student contribution to third level tuition fees in addition to the student registration charge. This would bring the composite fee from €670 to €1,000 in 2003. Having regard to the overall cost of providing places at third level, the Committee believes that this is a reasonable proposal. The Committee has also raised at Appendix III the broader issue of universality of entitlement to third level fees and recommends that this issue be examined further.

Education & Science Vote Group
Summary of Committee's proposals
2002 REV				5455.50
Gross ELS figure for Vote Group				5788.98
Gross Pre-Budget target (PBT) for Vote Group				5641.34
Savings below ELS required to reach Pre-Budget target (share of €900m)				147.64
Gross savings proposed by the Committee to contribute to €900m target				142.64
Proposed Revised Gross Allocation (as per Table 1)				5646.34


		€m		€m
Estimate proposed by the Department of Finance in line with the pre-Budget target			5641.34	2003 Proposed Allocation for each subhead

*Plus additional pressures* *which Committee accepts must be met:*
	Commitments on Pay etc.	42.00
	Special Needs Education	20.00
	School Capitation / Student Support	20.00
	Implementation of Cromien Report (Review of operations, systems, staffing of Dept of Education)	2.00
	VEC - Rochford Report (Review of admin./ staffing of VEC sector)	1.00
	CE transfer to Education	6.10
	2nd Level Programme Co-ordinators	5.80
	Laffoy Commission	2.00
	Second Level disadvantage	1.00
	Increase in Student supports linked to fees increase	7.00
	Total additions		106.90

	*D/Finance Estimate including pressures*		*5748.24*

Less savings proposed by the Committee:
Subhead	Office of the Minister (Vote 26)
A	Administrative Budget efficiency dividend (E)	1.40		69989.00
B5	R&D activities (E)	1.00		15587.00
B8	Grants to youth organisation (E)	1.00		19000.00
B17	Miscellaneous (see note below) (E)	1.00		14539.00
	First Level (Vote 27)
F.1	Other grants and services (E)	2.00		52490.00
	Second Level (Vote 28)
H	Miscellaneous Post Primary Services (E)	2.00		52000.00
K	Miscellaneous (E)	1.00		5074.00
	Third Level (Vote 29)
	Increase in Third Level Fees (from €670 to €1,000) (see text)	16.50
	Reduction in block grants to universities and institutes of technology (E)	35.00		970135.00
	Vote 27 - 29
	Capital (E)	41.00		526864.00
	Total savings		101.90

	Revised Gross Allocation		5646.34

	(E) refers to Estimating Savings
	Note: The 2003 provision for this subhead excludes provision for the National Education Welfare Service which is now provided in a separate subhead