Mr. Peter Davitt:

I thank the joint committee for its time, which is very much appreciated.

There are four elements to our presentation - an introduction to the topic; some of the challenges involved; looking at solutions; and some conclusions and recommendations. Ireland has always valued a strong education system, but it requires an overhaul. In particular, the further education and training, FET, sector has grown in an unco-ordinated way without strategic direction. As a result, the significant potential of the sector to contribute to growth has not yet been realised. The business community is supportive of the efforts of the Government to create the structures that can unlock that potential and is keen to become a proactive partner in the transformation process. Developing the skills base or business need is an essential component of growth and competitiveness and a shared responsibility.

FIT has brought much innovation to the FET sector by identifying skill needs in the ICT and technology sectors, by developing matching new streams of recruitment for employers, by identifying and activating under-utilised talent in the ranks of the unemployed and by refocusing publicly-provided skills training in collaboration with the Government and its agencies. FIT has advocated the role of skills development as a transformative strategy for Ireland for more than an decade. More recently, FIT carried out an ICT skills audit with a representative sample of major corporates and SMEs which identified the specific skill sets that ICT employers are currently seeking to fill and which cumulatively amount to approximately 4,500 vacancies. The responses from the employers surveyed showed a demand for skills at all levels. The shortages at higher levels of expertise and experience are already well known and the focus of existing industry-Government action plans. However, less information has been available on the skills needs at entry and intermediate level and the skills audit has provided empirical evidence of what those requirements are. The FIT ICT skills audit informed the proposed initiative and helped to envision and articulate an integrated strategy whereby FET and the higher education system can undertake a more shared and co-ordinated role in addressing employers' skills requirements in short, medium and long term. From our perspective, we are in the midst of a challenge and that presents opportunities. There is a growing and emerging skills shortage within IT and related sectors but there are new opportunities to respond to those needs.

Today's knowledge economy is characterised by rapid skills obsolescence. As business needs evolve at local level, demands are placed on education and training systems to evolve their curricula, but such systems, many of which are relatively centralised, find it difficult to adapt at the required pace.

FIT welcomes the recommendation of the joint committee's report, Creating Policies that Work, which focus on solutions to youth and long-term unemployment. In presenting our proposals today, we are confident that they address key issues outlined in the Oireachtas joint committee's report, particularly in relation to new forms of apprenticeships, stronger employer linkages and international best practice. As intimated by the joint committee's report, a new strategy for skills and competencies development is urgently needed which is radically different from the existing one which has structural flaws that cannot be simply repaired. In this regard, more enlightened countries are reaping the rewards of more effective public policy approaches that demonstrate workforce skills development as a potent process for engaging public and private sectors in powerful alliances that support low unemployment, resulting in highly-sustainable economies.

Germany's economy, as a prime example, is described as having high skills equilibrium, characterised by a broad industrial base with a large number of small and medium-sized companies in addition to larger multinational companies, which are involved in export-oriented activities requiring a highly-skilled workforce. German companies consider apprenticeships to be a vital component to guarantee progressive skills development, ensuring their long-term competitiveness. Accordingly, Ireland's approach to skills development needs a rethink. Ireland has the highest percentage of third level graduates among the 27 EU member states. In contrast to other more robust economies, Ireland has embraced a culture of pursuing third level qualifications as a holy grail, with parents seeing the educational pathway as the predominant one that leads to future prosperity for their children. however, one in four students drops out in year one of third level and youth unemployment is at an all time high in Ireland. Germany, on the other hand, is ranked 18th out of the 27 in terms of third level participation, yet it has one of the strongest economies and lowest youth unemployment rates in Europe. In addition, despite outputs of graduates, we are currently experiencing a severe shortage of skills in our multinational and indigenous ICT sectors, as recently re-affirmed by the FET ICT skills audit, which was launched by the Minister of State with responsibility for skills, Deputy Ciarán Cannon, last Thursday.

The concept of the ICT, as presented, in reality is not totally unique to the Irish experience. If one considers the accounting, legal and medical professions, all of them illustrate dual education approaches to learning and skills development. The term "associate professional", a Central Statistics Office categorisation of occupation for those who work as finance-book-keeping specialists and IT technology specialists, has been adapted to describe the proposed dual education model, combining work-based learning and classroom study as a means of acquiring the comprehensive skill sets and practice required in the modern economy. It is anticipated that such an enhancement to the skills development infrastructure will: bring critically needed market-responsiveness to the education system; respond quickly to the needs of the technology employers; inspire, capture and cultivate much-needed talent for growth sectors; reduce unemployment, especially youth unemployment; nurture, through a combination of practical experience and formal training, the aptitude of learners to acquire the necessary skills; offer excellent careers with unlimited progression opportunities; create a self-adjusting supply and demand linkage model; and allow Ireland to compete in terms of skills.

From our perspective, the implementation of such a plan will require the following key actions: engagement with appropriate stakeholders; establishment of a steering group; programme development; establishing appropriate structures for certification, awards and assessments; an appropriate finance model; designing a pilot implementation; pilot evaluation; establishing the legal framework for the programme to operate within; developing a plan for scaling; and mainstreaming it into education and training systems.

We propose the FET and third level in Ireland should be bridged through the introduction of an associate professional dual education system component which, from our research, would have the support of many companies operating in the technology sector and related areas. It is our intention, with the support of the FIT board companies and affiliate companies, to pilot an ICT associate professional programme in the current year and to seek the support of Government, FET and the third level sector in this regard. The proposed ICT associate professional programme should be supported within the new education and training systems being developed through the reform of structures at all levels, for example, FET and higher education and through the establishment of SOLAS and QQI. Qualifications offered within the associate professional dual education programme should provide a proper platform for progression to higher levels within the national framework of qualifications. The ICT and related technology sectors and Government are encouraged to join with FET in piloting the ICT associate professional initiative as an urgent response to the current skills shortages in the sector in the midst of unprecedented unemployment.