Mr. Gerard Brady:

There are definitely opportunities in Brexit from the third-level perspective. I would argue that capacity is an issue. It may not be the main one but it is a big issue for student housing in particular, which has knock-on impacts in the rental sector. In parts of Dublin, one sees a lot of private rental housing being almost pushed out by extra demand from student rental. Student housing has particular relevance both in terms of the housing crisis and attracting foreign students. It is one of the things we addressed in last year's budget submission. For example, the VAT rate on student housing in the UK is zero, while here they pay the full VAT rate. A zero VAT rate would reduce costs and encourage third level institutions to get into that area.

According to figures we have gone though recently for a piece of work we are doing, Ireland has the highest rate of students going abroad. In any given year, about 12% of Ireland's third-level student population are abroad at a foreign university. The EU average is only 2%.

Irish people are far more likely to go abroad to go to international universities, which lends to our reputation abroad.

There has been a great deal of focus in the Brexit debate on immigration. Ireland has the highest rate in Europe of non-nationals and the most educated non-nationals in its labour force. About 70% of non-EU nationals in the Irish labour force have a third level education. About 60% of EU national are educated. In spite of the fact that we are the second most educated country in Europe after Finland, we have far higher levels of education among non-nationals. Ireland has been a success story in many ways in the international transfer of skills. That is hugely important. We see some of our international partners, in particular the US and the UK, move away from the globalised skill set and the feedback that comes from companies all the time is that this is one of the key pieces of the 21st century. We are moving to a services-based economy. We are moving to a more high-skilled economy with a lot more flexible movement of labour. Essentially capital is following labour, rather than the 20th century model of labour following capital. Because Ireland has been so successful at that there are really good opportunities out there for us as long as we do not succumb to the same issues that some of our neighbours have and that are happening in the US right now.