Scoil Mhuire Gan Small in New Inn has been allocated funding to build a mainstream classroom along with 2 special education training rooms.
The six teacher school, which caters for boys and girls up to 1st class, and then girls only, is located on the old N8 between Cashel and Cahir.
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The funding allocation has been welcomed by both Labour's Alan Kelly and Fine Gael TD Noel Coonan.