Mary Hanafin (Dún Laoghaire, Fianna Fail)

The university presidents were selective in their statements on State funding because they did not include the grant in lieu of tuition fees. The figures mentioned by the presidents relating to money given to universities did not include funding given by the State to universities in lieu of fees students would otherwise pay. This type of funding came to around 32% of recurrent funding for universities in 2007. Expenditure on free fees in the third level sector came to €326 million last year.

I understand why the presidents sought more money and I feel the third level sector merits an increase in funding. In my position as Minister for Education and Science I have always increased the amount of money allocated to higher education. Not only does this apply to day-to-day grant funding but it also applies to the strategic innovation fund, which amounts to €510 million and allows universities introduce changes and modernisation. To give credit to the university presidents, they have done very well in introducing change and modernisation in the past few years.

There is no conflict over funding and nobody is telling lies in this matter. The university presidents have simply not included the substantial amount of money I mentioned in their funding calculations. Allowing for changes in the economic climate, I aim to continue the rate of increase in funding that has been seen in recent years. We often look to Scandinavian countries like Denmark and Sweden to compare levels of funding and, while they are starting from a higher base, the rates of increase there are substantially lower than ours. Our rate of increase was 74% and Denmark's was 33%; this shows the commitment of the Government to higher education, and not just at the level of research and development. Fourth level, research and development, is often highlighted but increases in funding have been made at third level, undergraduate level, also. This is where the difference lies between what I am saying and what the presidents say.

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