Batt O'Keeffe (Cork North West, Fianna Fail)

Turning to higher education, the capital allocation is being increased by over €100 million to €265 million in 2009. This represents an increase of almost 50% compared with the projected outturn for 2008. The 2009 capital allocation is one of the highest annual levels of investment in core higher educational infrastructure over the past ten years and represents an increase of just over 75% when compared with the funding of just €68 million provided for universities and institutes of technology in 1997. The allocation will enable me to continue the programme of investment in upgrading and modernising undergraduate facilities at institutes of technology, universities and other colleges. In addition, it is intended that the first bundle of third level PPP projects will be offered to the market this year, with the second and third bundles following at six-monthly intervals.

On the research side, the increased investment will allow continued progress in delivering previously approved projects under the programme for research in third level institutions. The year 2008 marks the tenth anniversary of the programme for research in third level institutions with total investment under PRTLI to date of €865 million, including €648 million direct Exchequer funding provided by the Government. I will also make an announcement in the coming weeks in relation to PRTLI 5. I will be providing for a further round of funding under the research facilities enhancement scheme for the improvement of research infrastructure. This competitively awarded scheme has been very successful in providing targeted moneys for restoring and updating equipment and facilities where strategic research is ongoing. In the course of the next few weeks and months, I will announce details of specific new projects and programmes that will be funded from this allocation in 2009. Overall, the increased capital allocation for the higher education sector will provide better infrastructure for students, lecturers, researchers and others working in Ireland's higher education sector.

Given the scale of the economic circumstances facing the country, I do not for a moment pretend the allocation for education, enhanced though it is, allows us to avoid tough decisions and choices. The €8.5 billion current expenditure on education is predominantly on frontline services. It is the grossest dishonesty, as the Opposition has done, to peddle trite and simplistic notions that the scale of adjustment required in education can be met by painless and populist measures. Approximately 80% of the current allocation goes on the salaries of front line teachers, SNAs, lecturers and others working across the education sector. A further €500 million goes on school running costs. Other large elements of the budget include areas such as provision for school transport. It is disingenuous to pretend that necessary adjustments required in the national interest can be obtained without having recourse to these areas.

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