Peter Kelly (Longford-Roscommon, Fianna Fail)

I welcome the opportunity to contribute to this important debate. It is an opportunity to show the importance of the institutes of technology in the economic development of their regions. The Institutes of Technology Bill 2006 is the culmination of a three-year process which began with the publication of the expert working group report on the future position and role of institutes of technology and continued with the 2004 OECD review of higher education policy in Ireland. Both reports recommended many of the measures included in the Bill that will give institutes of technology greater freedom and autonomy. The legislation proposes that the Higher Education Authority has responsibility for universities and institutes of technology. This should be the basis for the development of a more coherent national higher education policy. It is important to draw on the diverse strengths of the higher education institutes if their potential is to be fully maximised at regional and national level.

The Bill recognises the critical role the institutes of technology play in the delivery of a world class third level education. It also recognises their ability to respond quickly and efficiently to meet national and regional economic and social needs. The contribution of the institutes to regional development has been enormous. They have provided students with real transferable skills that enable them to adapt to the constant flux of the economy.

I compliment the director of Athlone Institute of Technology, Professor Ciarán Ó Catháin, its staff and pupils for their great work in the institute. It is a repository of expertise in electronic, computer and software engineering. This obviously helps meet the need for quality graduates in the Athlone region. Through initiatives such as the Applied Software Research Centre and the Midlands Innovation and Research Centre, the institute is a driver of research and development and an incubator of technological and scientific creativity.

If we are serious about the creation of a fourth level Ireland, then we must welcome the Bill's measures. The new powers of governance for governing bodies and the new larger education arrangements are in line with international best practice, while the new budgetary structures are similar to those found in universities. The proposed legislation will facilitate the swift response of the institutes to environmental change. The greater autonomy it suggests will enable the institutes of technology to play an even greater role in the growth and development of their regions. The institutes of technology have met an important need over several decades. They have expanded from a position of educating technicians to being a driver of research at doctoral and post-doctoral level, a dramatic transformation in so short a period. The legislation is an important enabler in ensuring their continuing contribution to the economy, especially in the regions. There is no doubt about the commitment, dedication and expertise of the Minister for Education and Science, Deputy Hanafin. All Members will agree with me when I give her top marks in her class.

According to Mr. Tom Boland, chief executive of the HEA:

When the history of Ireland of the past 30 years or more is written, the institutes of technology will occupy a prominent part. The institutes have not only opened the doors of higher education to literally thousands of people, they have also provided a massive boost to the economic infrastructure of towns and regions. They have played an essential part in the success story of modern Ireland.

The Institutes of Technology Bill 2006 signals a major change in higher education. It creates a unified strategic framework for higher education by bringing the institutes of technology under the remit of the HEA. The authority was responsible for universities only. The Bill will also extend significant new managerial and academic autonomy to the institutes aimed at facilitating further development of their roles. The institutes of technology have been a major success story. By opening up new opportunities for educational access, they have been central to the dramatic growth achieved in the past 20 years in third level participation, a major factor in our economic success.

At a regional level, the institutes have been catalysts for economic development by actively responding to the skills needs of local industry and forging industry partnerships for research and the transfer of knowledge. The sector's student numbers have expanded and developed rapidly, along with the range and level of courses offered and the growth of concentrated research activity. More than 90,000 full-time and part-time students are pursuing studies in the institutes of technology, ranging from sub-degree level to PhD studies. The Bill will apply to the 13 institutes of technology established under the Regional Technical Colleges Acts and to the Dublin Institute of Technology, Ireland's largest third level institution.

The Government is increasingly looking to higher education to support wider national objectives for social and economic development in the knowledge age. For that reason, a system-wide excellence in higher education must be built with reference to the best international standards. The institutes of technology have a vital role to play in this. They must be supported in developing their full potential in this role. By bringing the institutes under the remit of the HEA, the legislation will allow for a cohesive approach to the strategic development of higher education, drawing on the diverse strengths of all universities and institutes. This legislation is a milestone for the sector. It will empower the institutes of technology with the managerial freedoms and supports required for them to enter the next phase of development as a key part of Ireland's infrastructure for growth as a knowledge society in the 21st century.

The 2006 budget provided for a five-year investment package of €1.2 billion for the third level sector. Of this, €300 million will be allocated to a strategic innovation fund and €900 million has been allocated to a five-year capital programme. Ireland's economic performance has for the past several years attracted international attention. Our success can be attributed to a range of factors, including taxation policies, social partnership, the determination to pursue consistent policies for the creation of an attractive business environment and the availability of a talented, flexible and well-educated labour pool. In respect of the latter factor, the commitment of successive Governments over many years to the development of our education system at primary, secondary and third level has proved to be extremely far-sighted.

In seeking to develop and protect Ireland's future competitive strengths, we need to exercise similar vision now. The announcement in the budget of major new investment in higher education stems from a recognition that safeguarding our future growth and prosperity requires investment now in Ireland's knowledge, skills and innovation capacity. Our higher education system has become crucial to Ireland's national development objectives. Creativity, skills and knowledge are now our key sources of competitive advantage as we seek to position ourselves at the forefront of developed knowledge economies in the world.

To achieve success in this knowledge age and to enjoy the social dividends that flow from that, we need to produce quality, skilled graduates who can meet the high value jobs needs of the emerging sectors of the economy. We must achieve new levels of performance at third level. We especially need to develop a fourth level system of research that is benchmarked against the highest international standards. This will provide a platform for a national system of research and innovation that will be the engine of our future growth. Producing a supply of quality PhD graduates will act as a magnet for international investment here in the knowledge intensive industries. Investing in third level and fourth level is, therefore, a major national infrastructural priority.

Achieving the desired change is a complex and challenging task, it is not simply about volume and capacity, although they are very important. The fundamental challenge relates to quality. The transformation of third level education and the creation of a new fourth level tier that places Irish research activity at the global cutting edge are necessary.

The €300 million strategic innovation fund for universities and institutes of technology is intended to drive that transformation over the next five years. Its introduction is a landmark in the historical development of the sector in Ireland. As the president of UCD noted at the time:

We have reached a crossroads moment where significant investment is needed to support and advance the reform process at third level and to progress the development of an Irish fourth level sector which will make a huge impact nationally and internationally. We have been given the opportunity to transform the landscape of Irish higher education in an irreversible fashion. It is hard to think of a better legacy which we could pass on to the next generation.

The strategic innovation fund will emphasise the promotion of inter-institutional collaboration across the system. Knowledge is international and intellectual capital is highly mobile in nature. The quality of higher education in Ireland must be measured, therefore, against the highest standards across the world. As a small country, we need to maximise the collective strengths of our higher education institutions to achieve system-wide excellence in international terms at third level and to create a top performing fourth level sector. The experience of the PRTLI has illustrated that world class excellence can be created within the Irish system when we identify and draw together our best available talent and expertise.

The infrastructure developments planned under the capital envelope are an essential element of the Government's commitment. These are aimed at upgrading and modernising campus facilities throughout the country and addressing development needs in areas of national strategic importance. Investment in higher education will be identified as a central element of the next national development plan for the period 2007 to 2013. This represents a significant statement of its core strategic national importance.

The major impact of investments under the current national development plan can be seen across key areas of national infrastructure such as roads, public transport, water, waste and health services, and social housing. It has resulted in an unprecedented enhancement of our economic and social infrastructure. The next national development plan will build on that progress by strengthening further our core infrastructure to meet the economic and social challenges ahead.

The capacity of our human capital and the role of higher education in developing it will be central. The strategic innovation fund will enable the higher education system to achieve a new level of performance and will create a platform for effective return on the wider investments that will be made through to 2013, including investments under the ambitious national research plan which is shortly to be considered.

In my part of the country, Athlone Institute of Technology has made a vital contribution. New courses at the institute have been introduced and developed in line with changing regional, national and international needs. Emphasis on research activities and liaison with industrial and commercial organisations have helped to ensure the relevance and technological competence of courses at the institute and enhanced the employment prospects of graduates over the years. Courses in the school of science are undertaken through a programme of lectures, practical work and tutorials. Continuous assessment plays a major part in all courses and emphasis is placed on the development of practical skills as well as theoretical knowledge. Individual project work and-or industrial placements are an essential part of national diploma and degree programmes. The school has a wide range of advanced instrumentation available for such project work and in many cases the industrial placement provides the venue for students' full projects.

Computers play an important role in all courses, both for information processing and, increasingly, as learning tools. In addition to having access to the institute's extensive computer facilities, the school of science has its own range of state of the art personal computers housed in a purpose-built computer science laboratory, from which students can interface with the world of science via the Internet and e-mail.

I commend the Bill to the House.

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