Dr. Bryan Maguire:

Deputy Thomas Byrne raised questions about how the learner protection fund might operate. This is being introduced on a statutory basis for the first time. There have been arrangements under the 2012 Act, the preceding legislation, to provide for mutual support and letters of exchange as referred to by one of the previous witnesses. This simply does not give sufficient robustness, particularly in cases of dramatic closure, as Deputy Byrne mentioned.

The reason the two days' notice is there is that not all closures are dramatic. Some businesses wind down in an orderly fashion. Businesses fail and schools have to close. The fund could be drawn on in such cases when a provider gives notice of that in good faith.

How was the fund set up and does Quality and Qualifications Ireland, QQI, have the capacity to administer such a fund? Our proposal is that, while QQI will have a monopoly on establishing a national fund, the procedures whereby we administer that will be subject to procurement so we will be procuring the necessary professional services in specialised areas that are outside our standard area of operation. Nevertheless, providers are being compelled to have insurance and QQI has a range of other engagements with those providers on things like the capacity to check, on a statutory basis, their corporate bona fides and compliance with the various laws, including employment laws, and those kinds of powers which do not exist for an ordinary insurance company. We also have ongoing monitoring functions in respect of the education and training being provided by those providers, whether in the English language or higher or further education. We have additional information which can be used to judge the ongoing risks to which the fund is being exposed and that would not be available to private sector insurers.