James Lawless (Kildare North, Fianna Fail)
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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.

Erin McGreehan (Louth, Fianna Fail)
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I thank the Minister. We will proceed to consideration of the Bill.

Eoghan Kenny (Cork North-Central, Labour)
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I move amendment No. 1:

In page 3, between lines 18 and 19, to insert the following: “(2C) A payment for a purpose specified in subsection (1) in respect of works referred to in subsection (2B)(b) shall, where practicable, be made subject to the condition that tenders for the procurement of those works shall include as a condition that apprenticeships or training opportunities, of such nature and number as are specified by An tSeirbhís, are provided by the contractor during the period of execution of those works.”.”.

I thank the Minister and his officials. The amendment is quite clear in its wording. Since the establishment of this committee, a particular focus has been on the role of apprenticeships across the country. In my previous profession, apprenticeships had been an extremely important role for the development of children across the country, and young adults in particular. The point of the amendment is that the State will be providing the opportunity for young adults across the country to work with contractors on works the State is doing. Even during the previous general election, there was a lot of focus, given towards me and other candidates, perhaps, on the fact that we have private contractors who give certain apprenticeship opportunities but, as a State, we could lead on that. In the Minister's opening remarks, he said: "The Bill is a statement of intent. Ireland will invest in its people". That is an extremely important point in regard to this amendment. Investing in people in third level is well and good but we also need to invest in those who want to go into an apprenticeship and work in the labouring profession in particular. I ask the Minister and his officials to consider this amendment.

James Lawless (Kildare North, Fianna Fail)
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I thank the Deputy. I have had a good look at the amendment and discussed it with my officials. It makes a lot of sense. I see the intent of it. Before I get into the substantive response, I absolutely share and support the Deputy's call and desire to promote apprenticeships and further education. It is one of the functions of this Bill that with regard to the provision of funding from the NTF, including the facilities and equipment, much of that will be used for apprentices to train up in various further education settings, including technological universities, education and training boards, ETBs, and elsewhere. This is very much geared towards expanding and enhancing the provision, supporting the apprenticeship experience and, ultimately, providing more. We have a programme for Government commitment to have 12,500 new apprenticeship registrations by the end of this term. I brought to Cabinet earlier this week an expansion of 1,600 apprenticeship places. That is towards our housing needs, carpentry, joinery, wood manufacturing and design, plumbing and important things like heavy goods vehicles and motor mechanics. There is a huge need right across our economy and society for apprenticeships in many fields and this is part of that.

Looking to the amendment, the difficulty is that although I see where the Deputy is coming from and share the policy intent, it would provide a procurement condition which may not be compliant with legislation, other existing regulatory codes and the way the procurement model normally works. As it stands, I am not in a position to accept the amendment but I might suggest we continue to discuss it because I understand the policy intent. I see where the Deputy wants to go and I commend the intent behind it.

Eoghan Kenny (Cork North-Central, Labour)
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In relation to the procurement conditions, are they something the Department of further and higher education could-----

James Lawless (Kildare North, Fianna Fail)
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It is probably a bit broader because it goes into EU law. In legislation more broadly, I suspect the Department of public expenditure would be involved but there are EU law provisions, as well as others. Does the Deputy wish to return to it on Report Stage and we might take the opportunity in between to have a look at it and see if there is anything we can do along the lines he is suggesting, in a way that would be compliant? Perhaps there is or perhaps there is not but I am certainly happy to engage with the Deputy on that, if that is helpful.

Eoghan Kenny (Cork North-Central, Labour)
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Absolutely. I reserve the right to re-enter it on Report Stage.

Erin McGreehan (Louth, Fianna Fail)
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Does anyone else want to make a comment? Deputy McGettigan.

Donna McGettigan (Clare, Sinn Fein)
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I agree with Deputy Kenny.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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I share the sentiments. Maybe it is an issue that could be addressed across procurement in general. It is probably a matter for the Department of public expenditure. There should be an element of ensuring that apprenticeships are in major projects. It would need to be done in general rather than specifically for the Minister's Department, I would expect. I do not know. Like the Minister, I share Deputy Kenny's sentiments, as does Deputy McGettigan.

James Lawless (Kildare North, Fianna Fail)
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I agree with all the Deputies. I advise them that we do have the public sector apprenticeship plan. That is not about procurement but it is about us walking the walk ourselves. Government Departments, State agencies, etc., are encouraged and we have a proactive policy plan in place to ensure that all agencies of the State are engaging in apprenticeship training. In my own Department, we actually have some apprenticeships working and getting on fantastically. I want to see that rolled out. We can, as a State, do better and it is something I am continuing to drive. We are trying to walk the walk in-house.

Erin McGreehan (Louth, Fianna Fail)
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The Deputy may bring forward an amendment on Report Stage.

James Lawless (Kildare North, Fianna Fail)
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Section 1 is ultimately where we insert the new section 7(2B). As I mentioned, it is to incorporate:

(a) the acquisition of lands, premises, furniture, equipment;

(b) the upgrading, construction or reconstruction, including repair and maintenance, of premises.".

I will mention that it is all consistent with the original NTF goals.

Donna McGettigan (Clare, Sinn Fein)
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I will be bringing amendments on Report Stage. What I would like to see in there is that in the "acquisition of lands", these payments would only relate to training and upskilling and not be for any other purpose. It should be the same with upgrading and construction. I do not think that retrofitting should be included in that and I would like to see wording to that effect in the Bill. I know the Minister is providing assurance now that it will not be used for anything other than that, but there is nothing to say that any future Minister would not take those words and use that "acquisition of lands" for anything other than that purpose. I would like to have that in the Bill in writing, rather than relying on a verbal assurance.

I would like an assurance written into the legislation.

Erin McGreehan (Louth, Fianna Fail)
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That completes our consideration of Committee Stage of the Bill. On behalf of the committee, I thank the Minister and his officials for their attendance. After sending a message to the Dáil, we will suspend briefly to allow the Minister's officials to depart before considering the Supplementary Estimate. Is that agreed? Agreed.