The State will pay rent to the Catholic Church for its schools that transfer to new patrons under new 40-year leases.

The arrangement forms part of a Department of Education deal with Catholic bishops aimed at speeding up the process of transferring patronage.

Under the deal, the Church would retain ownership of schools and receive “appropriate” rents which take into account the fact that schools may have benefitted from State capital investment in the past.

The insurance premium for school buildings also forms part of the leasing arrangement, as well as contributions to legal costs involved in securing any State interest in the property.

The department should, where possible, have the option of extending any leases or purchasing school properties if they are put up for sale in future.

The department said commercial rents are not appropriate due to the educational use of the properties and a “reasonable” rent should be agreed.