Education A new €1 billion school modernisation fund will make a "significant dent" in helping to upgrade primary schools over the next five years, the Minister for Education, Mr Dempsey, has predicted.

In the Budget, an additional €30 million was secured for primary and second-level school buildings. This is in addition to the extra €23 million secured in the Estimates for primary schools.

In all, it means that spending on the primary school building programme will exceed €200 million next year for the first time.

The Budget proposes a five-year capital investment programme for the Department of Education and Science. The five-year rolling programme means the Department will have the flexibility to switch funds to particular areas of need in the primary, second-level or third-level sectors.

Last night, the INTO general secretary, Mr John Carr, acknowledged "the efforts of the Minister for Education and Science in this area. He inherited a situation where more than 400 schools were in need of major building work. About half of all primary schools need work, such as the addition of PE halls, office accommodation, toilets, teaching rooms and heating systems. His efforts to secure this level of funding present the opportunity to bring to an end this crisis in the foreseeable future."

The INTO estimates that some 400 of the 3,200 primary schools in the State require replacement or extensive renovation. Many of these date back to the 1970s.

Last night, Mr Dempsey told The Irish Times that the new five-year plan would ensure considerable progress in helping to upgrade school infrastructure.

The Budget also makes provision for the greater use of public/private partnerships (PPP) in the construction of new schools. Some €50 million has been allocated for PPPs next year and a further €75 million in 2005.

There are indications that changes to EU rules could also open the way for greater use of PPPs for projects such as the Cork School of Music.

Last month, the INTO threatened a series of one-day strikes to highlight conditions in primary schools. But these plans have now been shelved because of the larger-than-expected funding provided in recent weeks.

Mr Dempsey hopes to publish the school-building programme for next year within weeks. This will allow communities to see at a glance when their school will be built or upgraded. Last night Mr Dempsey said: "This extra 30 million for the school-building programme is a clear signal of the Government's commitment to education and to the modernisation of school buildings".

The ASTI has welcomed the increase of €30 million in the provision for school buildings. Its president, Mr Pat Cahill, said: "Whilst the amount is inadequate, it will give some hope to the many second-level schools who have been long waiting for essential improvements in their accommodation."

But the union was critical of the Budget measures in relation to special-needs students.