Michael Moynihan (Cork North West, Fianna Fail)

I welcome the opportunity to contribute to the Second Stage debate on the Institutes of Technology Bill 2006. Higher education in Ireland has undergone a major transformation over the past generation. Considerably more than half of school leavers now proceed to third level compared with just 20% in 1980. The institutes of technology have been at the centre of this remarkable expansion which has, in turn, been a key factor in our current economic success.

The institutes have done a first class job in responding to the need for economy-linked skills. This success has led to dramatic growth in student numbers, the range and level of courses provided and the development of concentrated research strength. Awards from sub-degree to doctoral level are now made in the IT sector. These are rigorously quality assured and retain a vital relevance to wider social and economic needs. The institutes now have a vital role as we look to the higher education system to support our wider national objectives for social and economic development in the new knowledge age.

Over the past ten years in particular, the institutes have built a strong reputation, engaging in applied and basic research and technology transfer programmes with industry. The institutes, which have only been a feature of Irish higher education since the 1970s, have demonstrated the ability to respond to economic changes in a regional, national and international context.

The technological sector now accounts for almost 50% of those pursuing third level educational qualifications in Ireland. The chief executive of IDA Ireland, Sean Dorgan, praised the institutes for their "real world" quality, their openness and accessibility, and for how they cater so flexibly for so many ambitions and needs. They are relevant, connected and responsive to changing demands and expectations. The institutes also reflect many of the features that make Ireland attractive — our creativity and ability to initiate and innovate without waiting for direction, our agility and ambition, and our continuing wish to improve.

Mr. Dorgan also noted how all the qualities and work of the institutes are essential for our future as global competition is ongoing and relentless. We need to step up the skills of everyone, from bricklayers to biochemists, receptionists to researchers, so that we can fulfil the potential and satisfy the aspirations of all in society. Yet, surprisingly, there is a feeling that the institutes of technology need better public relations and that they are not universally recognised or acknowledged for their many attributes.

Two weeks ago a national institutes of technology survey was published which showed that the institutes have a surprisingly low profile. Apparently, only 35% of people are aware of the institutes of technology when spontaneously asked, although awareness does rise to 85% once prompted, and is higher in areas near a campus. According to Jim Devine, chairman of the council of directors of the institutes of technology: "The trouble is, the public is still not as aware as we would like it to be, and that is a challenge we as a group aim to take up."

The report's authors note that there is uncertainty in the public mind as to how many institutes of technology there are and whether each is independent or if they operate as a group. Some 55% of people are aware that institutes award nationally recognised qualifications but just 35% realise the institutes award internationally recognised qualifications. Just 42% of those surveyed were aware of the honours degree courses offered by institutes and a mere 14% of the public seemed to be aware of the significant contribution being made by the institutes at postgraduate or fourth level. This clearly is an issue we will have to address as we seek to build and develop a knowledge economy in Ireland. The serious intent of the Government to do this was highlighted in last December's budget.

Many believe that our economic success has been caused by our low tax policies and there is no doubt of the major contribution these have made, but a huge indicator of our economic success has been the exceptional wealth of intellectual capital available to investors, whether domestic or from overseas. Ireland has become synonymous with the quality of its graduates.

The basis for future growth and prosperity is investment in the knowledge, skills and innovation capacity that will drive economic and social development in an increasingly competitive environment. The higher education system must deliver people who will expand knowledge-based business located in Ireland. This will require substantial change and quality improvement in universities and centres of higher learning and the promotion of system-wide collaboration that can draw on the collective strengths of the institutes of technology.

In budget 2006, a commitment was made to the establishment of a new PhD level of education, a fourth level. Last year the Minister for Education and Science signalled the Government's intention to create a multi-annual strategic innovation fund for higher education. To achieve what we must achieve will require a commitment to substantial change in all our third level institutions. As the Minister for Finance, Deputy Cowen, noted:

We must strip out unnecessary duplication. There must be an appetite from within the sector itself for greater collaboration. This is a small country. It is not sensible to have our third level institutions pitched against each other across all key disciplines. Instead, what we need is the promotion of a system-wide collaboration that can draw on the collective strengths of all of our third level institutions [universities and institutes of technology].

We are competing in a global world. To compete and to retain the strength of our offer demands an investment in the knowledge, skills and innovation capacity of this nation. Our edge in education is being challenged not just by the established sources of excellence but also by emerging nations across the globe. The Government believes such a programme is fundamental to our economic and social development and the allocation of €300 million to the strategic innovation fund for higher education over the next five years is a real statement of intent.

In addition, it is essential that investment in modern facilities is maintained in university and institute of technology campuses around the country. As a result, we are committing €900 million to the third level sector over the next five years as part of the Department of Education and Science capital envelope. The physical development will have to reflect the changed approach whereby there must be greater co-operation between the institutions involved. This brings planned investment in capital spend and the strategic innovation fund for third level to €1.2 billion over the period 2006 to 2010.

These strands of planned investment in higher education form a core element of the Government's strategy for developing skills and competencies. This will be an important element of the investment strategy for the new national development plan. The landmark OECD report on third level education recommended greater freedom and autonomy for the institutes, which is what we are dealing with in the Bill.

The purpose of the Bill is to give statutory effect to the Government policy of transferring responsibility for the day-to-day management of the institutes of technology from the Department of Education and Science to the Higher Education Authority. The overall thrust of the Bill is to facilitate the designation of the institutes of technology under the Higher Education Authority and to remove the Minister and the vocational education committees from the normal operational activities of the institutes, thus providing greater autonomy for the institutes to fulfil their missions.

The provisions in the Bill signify a fundamental change in the management of third level education. The Bill will produce a unified framework for higher education. For the first time the 14 institutes of technology and the seven universities will come under the control of one body, the Higher Education Authority. At present the institutes are managed by the Department of Education and Science. The Higher Education Authority currently has responsibility for universities only. The Bill will also extend significant new managerial and academic autonomy to the institutes of technology, which is aimed at facilitating further development of their roles. A key aspect of the Bill is the freedom it will give the institutes of technology. In the past there has been criticism that the Department's control of the institutes restricted them from developing further.

The Bill will allow for a cohesive approach to the considered development of higher education, drawing on the various strengths of all our universities and institutes. There is no doubt this is a landmark Bill which will provide our institutes of technology with a managerial freedom and support they will require as they enter the next phase of development. The Bill provides the institutes of technology with the recognition they deserve. They have contributed enormously over the years to Irish society and the current economic boom. I commend the Bill to the House.

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