Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I already have plans to increase the level of expenditure in third and fourth level institutions. As Deputies know, I made an announcement that I am planning to increase the training levy by 0.1% per year for the next three years. For next year alone that will bring in an additional €36 million to €37 million that would be available for higher and further education in our country. I plan to increase that by two further moves afterwards. I have also made a very significant increase in funding that is available to the Department of Education and Skills. Granted, much of that funding is going into challenges that the Department must meet in primary and secondary education. That is the reason I have decided to increase the training levy in employers' PRSI, to create a funding stream that will go directly to third, fourth level education. I decided on a levy rather than a tax because if I introduced a tax I would not have the ability to divert it to that sector.

I largely agree with the Deputies on the value of research and development in our universities. To end on a final point of agreement, the research and development that takes place under this tax credit clearly has to have a commercial value to the company, otherwise it would not be happening. We link it into particular criteria. One of the reasons that I want to increase funding to universities is that there is a great value and benefit in research and development that does not have a commercial value. Our universities are the place where that should happen.