Carillion school PPPs
Deputy O'Reilly raised concern that Carillion's collapse was delaying completion of several PPP school projects and criticised outsourcing. The Education Minister said the PPP structure left the State in a stronger position because payments are withheld until licence agreements are completed.
The programme for Government commits to a schools capital investment programme to improve facilities. Some of these are funded by public private partnerships, PPPs. The collapse of the British construction company, Carillion, has impacted the completion of six school buildings in this State. Some schools have been waiting for years and operating in very poor conditions, and they need assurances that they can still relocate to their new buildings, as was promised. Carillion is now a textbook example of the failures of outsourcing and privatisation. We need to move beyond this failing model. Shareholders and profit margins should not matter more than schools and students. Will the Taoiseach provide assurances that school buildings and relocations will be completed within the given timeframes, and that further disruption will not be caused to the schedules? Can he guarantee that any other capital projects involving Carillion will proceed within the established timeframes?
Comment on this
The Taoiseach dealt with the question very well earlier. There are a couple of points worth making. If this were a traditional build the State would have spent its money and we would not have the same level of hold. The position with the PPP contract, as Deputy Howlin pointed out, is that until the companies get a licence agreement they do not get any money back for the substantial investment - at 90% complete - that they have made. That puts us in a strong position, and a stronger position than if it were a traditional build by a company which then went into liquidation. It is important to make that point.
On the wider issue of the capital programme, we have huge pressures. We are seeing growing pupil numbers at both primary and secondary level, and that means that we are running hard to keep pace. My Department is completing 20,000 places per year and keeping up with the demand. We will continue to work hard to realise those targets.