Department of Education fails to spend half its capital budget

Sync

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Dept of Education fails to spend budget on new schools - InsideIreland.ie


You couldn't make it up really. Thousands of builders out of work. Despite the economic woes, the DOF find 700 million to spend on capital school projects, and the DOE have only managed to spend half of it after 10 months of the year:

The Department of Education has failed to spend almost half of this year's budget allocated to build new schools and classrooms in Ireland.

The latest figures show the department has spent €381m out of a total of €712m granted to it this year for capital projects. Much of this remaining surplus will be returned to the Department of Finance if it is not spent.

Last year's budget maintained strong levels of capital funding for education despite the economic crisis to cater for the recent baby boom.

Two other Departments with big capital budgets, Transport and Environment, also face large shortfalls.
The excuse is baffling:

The Department of Education has attributed its under-spend to dramatically reduced building costs. 10% of this year's budget can be carried over to next year but any remaining funds will be returned to Finance if they are not spent.
You don't get a cookie for coming in under budget. This isn't a private company. You've been allocated 700 million for new schools. If you've got money over, you put it into more new schools, which are sorely needed, as Quinn goes into in the article. Ridiculous.
 


black beauty

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sack the lot of them and get a new team who will spend the money.I wiil\ do the job if the want .
 

Asparagus

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What with all the media attention and thirst for accountability - it not so easy to funnel money in to your friends and families bank accounts trhough capital expenditure.
 

Desperate Dan

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Maybe the Gilmores might have another couple of fields to sell.
 

Goldencircle

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Couldn't decide which boyo was gonna get the money.
 
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If someone was overseeing that department then this would have been spotted happening a long time ago and they would have reviewed their current portfolio of upcomming projects.

But no one oversees anything in the public sector. It's everyman for himself.
 

Sync

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It's easy to have a pop at the public sector, god knows I do it often enough, but it's got to be within the Minister's remit to be monitoring the project status of each of these. The dept asked for 700 millon for 2010. That means they had to have allocated that to X projects.

Now you're monitoring the spend on those projects. If you see they're running low, then you call in the managers and reallocate the excess. There's no way they couldn't have known in June they were retaining this much. If it was 1/7th I could understand as you leave enough for overspend, but 1/2? Crazy stuff.
 

smitchy2

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I don’t think this is a bad news story what so ever.
The more money that goes back to Finance the less we have to borrow next year.

Capital spending is the way the government has reduced the expenditure side as it does not have the drive to get efficiencies in current spending.

However,
If no specific projects that were earmarked for this year did not get cancelled I cannot see why the underspend is a bad thing.
 

Radix

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Dept of Education fails to spend budget on new schools - InsideIreland.ie


You couldn't make it up really. Thousands of builders out of work. Despite the economic woes, the DOF find 700 million to spend on capital school projects, and the DOE have only managed to spend half of it after 10 months of the year:



The excuse is baffling:



You don't get a cookie for coming in under budget. This isn't a private company. You've been allocated 700 million for new schools. If you've got money over, you put it into more new schools, which are sorely needed, as Quinn goes into in the article. Ridiculous.
Fair play to you Sync.

Hope they are more careful spending the money than they were when buying school land from Squire Killimor's wife.
 

Conor

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You don't get a cookie for coming in under budget. This isn't a private company. You've been allocated 700 million for new schools. If you've got money over, you put it into more new schools, which are sorely needed, as Quinn goes into in the article. Ridiculous.
Not really. You're allocated €700m to build the number of schools you claim are needed. If you can manage to build them for €400m, you do get a cookie, and the thanks of a grateful nation. You don't get to spend the surplus €300m on unnecessary, unapproved schools, or whatever you're having yourself.

Now, I don't believe the reason the Dept of Education is coming out with for the underspend, and find it more likely to believe they simply didn't get round to meeting their targets in time (ie. building everything they said they would). But I've got no real basis for believing that going by that article, despite what Ruairi Quinn is saying. So taking what's being reported at face value, this is good news for the exchequer (though it points towards some poor cost projections, at best, by the DoE).
 


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