Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I entirely take the Deputy's point. It is unlikely that the fund will keep on building. The reason I think that is the experience we have had with the Social Insurance Fund, SIF. Once we give a commitment that we are going to spend in a particular area, we honour our commitments even if the SIF goes into deficit. We honour those commitments by moving money into the SIF from general taxation. There will come a point where the National Training Fund moves into a deficit because of what we are spending. There could, for example, be decreases in the tax we collect in respect of the share of PRSI that goes into the National Training Fund. I could definitely see that happening but it will probably be a medium-term development. In the short term, I take the Deputy's point. I recall when the rate of PRSI was increased by 0.1% per year to invest more in higher and further education. We are spending more in higher and further education and we have a surplus. I will continue with the efforts started by the Minister, Deputy Michael McGrath, to see is there a way of reconciling that. I will be frank and truthful with the Deputy when I say I do not think there is an easy answer.