James Lawless (Kildare North, Fianna Fail)

I thank all members for their feedback on Queen's University Belfast and Dundalk Institute of Technology. It is indeed a great day.

I thank the committee for inviting me back to discuss the National Training Fund (Amendment) Bill 2025. I thank the committee for its assistance in expediting this legislation. It is critical for the sector that we get this through by the year end so that we can actually begin rolling it out in the new year to the various funds and purposes it is intended for.

The fund was established by the National Training Fund Act 2000 as a dedicated fund to raise the skills of those in employment, to facilitate lifelong learning, to provide training to those who wish to acquire skills to take up employment, and to provide information in relation to skills requirements in the economy. For 25 years since the Act the National Training Fund, NTF, been a cornerstone of Ireland’s skills strategy. Established under the 2000 Act, it has enabled us to upskill and reskill our workforce, to support lifelong learning, and to provide vital intelligence on the skills our economy needs. The NTF has been a strategic national asset, one that has helped Ireland to weather economic shocks and to seize opportunities for growth as they have presented. Today, the challenge is equally clear. Our economy is changing and growing faster than ever. We can see change at every turn. Technological disruption, demographic shifts, and the green transition all demand a workforce that is agile, adaptable, and future-ready. If we do not invest now, we risk falling behind. This Bill ensures we do not fall behind and that we actually move forward.

With regard to the NTF levy and surplus, the fund is financed by a levy on employers, which is collected through the PRSI employers’ contribution. Currently the NTF levy is set at 1% on reckonable earnings, following annual increases of 0.1% during budgets 2018 to 2020. It was increased incrementally to bring it up to the 1% it is today.

A key priority of the fund is to strengthen and shape existing, and develop new, higher education and further education and training provision to ensure alignment with workforce reskilling, upskilling and lifelong learning requirements. This is essential to deliver on the talent needs of the economy and to strengthen Ireland’s competitive position and reputation for an agile and responsive workforce.

The NTF accumulated surplus at the end of 2024 was approximately €1.77 billion. In budget 2025, a six-year plan was announced to reduce this surplus through spending a total of €1.485 billion progressively over that period, commencing in 2025. That NTF funding package includes: the €885 million current funding package for the tertiary sector, including enhanced higher education funding and funding for skills and apprenticeships; a €600 million capital uplift to enable skills development, including facilities in the areas of healthcare and veterinary skills and much needed further education skills; supporting universal access to skills provision; and supporting the research and innovation sector, including increases to the PhD stipend. This funding will transform our education and training infrastructure and deliver the skills Ireland needs for the 21st century. My Department received legal advice from the Office of the Attorney General during 2024 and during the drafting of the Bill, which clarified that an amendment is required to the Act to facilitate this capital expenditure aspect of this intention. The National Training Fund (Amendment) Bill 2025 therefore makes minimal amendments to the NTF Act. It does, however, provide for certain capital expenditure from the NTF. This ensures that the NTF expenditure announced in budget 2025 can be provided from 2026 onwards. It is a targeted and minimal change but it will have a significant impact.

It is important to note that the Bill does not amend the purposes of the NTF Act. The Bill includes two sections as follows. Section 1 is the amendment of section 7 of the National Training Fund Act 2000. This section provides for the insertion of a new section 7(2B) to provide that payments from the National Training Fund in respect of a scheme may include payments in respect of the acquisition of lands, premises, furniture or equipment; and the upgrading, construction or reconstruction, including repair and maintenance, of premises. It is important to note that these payments must be made in accordance with a scheme to raise the skills of those in employment, to provide training to those who wish to acquire skills for the purposes of taking up employment or to provide information in relation to existing or likely future requirements for skills in the economy. In other words, it remains true to the original spirit and principle of the Act and it expands the mechanisms by which those objectives can be achieved.

Section 2 is simply the Short Title and commencement. This is a standard head which sets out the Short Title by which the Bill will be known and allows for the commencement of the Bill. I listened carefully to the debate on Second Stage of this Bill, and I thank all members for their contributions. I noted some concerns were raised in relation to ensuring that any capital expenditure from the NTF would align with the purposes of the NTF. I wish to provide an assurance now, to the committee and to all, that all capital NTF funding will remain firmly aligned with the NTF’s statutory purpose. All investment in infrastructure will be in accordance with the purposes of the Act and will add capacity in the system to deliver new skills programmes or expand existing skills programmes to benefit both learners and industry and employers.

Our objective in amending the NTF legislation is to enable the provision of high-quality skills training through modern, flexible and fit-for-purpose spaces and, where necessary, specialised facilities with state-of-the-art new technology. It is not about bricks and mortar. It is about unlocking the opportunity of our talent. I firmly believe that people are our greatest natural resource and that our talent is second to none.

We must unlock that opportunity and allow those people to prosper, thrive and contribute to society and the economy. For example, healthcare and veterinary training facilities are badly needed for urgent skills shortages. We need advanced equipment for apprenticeships and further education to drive on innovation across construction, our housing challenge, manufacturing, the green economy and much more. We need research infrastructure, including increased PhD stipends, to continue to attract and retain our top talent in the research field.

Given resource constraints, the condition of existing building stocks and the real estate under the remit, and the need to meet growing demand, unlocking this funding source will allow the tertiary sector to respond more effectively to workforce and skills needs. This will ensure learners can develop their skills in suitable environments with up-to-date equipment and facilities. Where refurbishment may be necessary to accommodate new equipment, this will be limited to the reconfiguration required for modernisation. All schemes developed to enable drawdown of capital funding under the NTF will be fully aligned with the fund’s original objectives. There is ongoing engagement with the National Skills Council and the high-level skills implementation group - I thank them for their work - as well as across key Government Departments on a range of skills and labour market issues. This will continue to ensure effective usage of the NTF in meeting the skills needs of the economy and in progressing the skills development agenda.

This Bill will ensure the NTF can also be used to fund capital expenditure on essential projects for reskilling and upskilling of our workforce, which will meet the skills needs of our economy and progress the skills development agenda. Every euro spent will be aligned with the statutory purpose of the NTF Act - to raise skills, support employment and anticipate future needs. This is about capacity, capability and competitiveness.

I want to be clear: capital investment will never dilute the NTF’s core objectives. In fact, it strengthens it. By enabling modern, flexible learning environments, we will ensure that Ireland’s workforce remains among the most skilled and adaptable in the world. The Bill is a statement of intent. Ireland will invest in its people, institutions and ideas. We will prepare for the future not by chance, but by choice. We will not be change takers but change makers. It is a small legislative change but it will deliver a transformational impact for learners, employers and across our economy and society.