The number of rental contracts agreed for school 'prefabs' was slashed last year to just 20 compared to 266 the year before, according to the Irish Minister for Education and Science, Batt O'Keeffe.

In 2007, 715 new prefabricated building contracts were agreed between suppliers and school boards of management.

The revelation comes following Minister O'Keeffe's announcement last week that 23,500 places would be created in 20 new schools and 32 extensions as part of the Government’s €579 million school building programme.

"My priority is to cut the incidence of long-term prefab rentals and to keep building new schools and school extensions," he said.

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By the end of last year, 557 schools had been approved funding to buy a prefab with the option of building a permanent classroom.

Of that, 249 schools indicated that they will buy a prefab and 201 will use the grant aid to build a permanent classroom.

The rest have yet to indicate their preference.

"These policies which I introduced shortly after taking office are dramatically cutting the use of prefabs and, in particular, long-term rentals," the Minister added.

"The commonsense approach has contributed to savings of €14 million on the prefab rental bill last year compared to the year before."

The Department of Education and Science spent €39 million renting prefabs last year compared to €53 million the year before.

"We are still spending far too much renting prefabs but the commonsense cost-cutting policies I have introduced, as well as the Government’s sustained investment in the school building programme, are now delivering much better value for taxpayers' money," said Minister O’Keeffe.

The Minister said work on the development of standard specifications for prefabs and a new rental contract is also well advanced in his Department.

(NS/BMcC)