Enda Kenny (Mayo, Fine Gael) | Oireachtas source

The third level sector has been a central plank of all Governments over the years. We have always prided ourselves on the quality of the young people who emerge from universities and ITs. This is in the context of the case Ireland continually makes for continued foreign direct investment. ITs have always been a little more flexible than universities in how they can lead and react to changing demographics and the need for new kinds of skills.

However, the Deputy has put his finger on a question that is broader than this particular problem because the need for capital investment spreads across a series of sectors and, given the perilous states of the finances for a number of years and the fact that we are now in a somewhat better place than previously but face a whole series of challenges, including the need for capital expenditure to build infrastructure across the country, the House will have to face this and discuss it in the period ahead.

There will be an investment of €36.5 million in the third level sector next year and €160 million over the next three years. That is the first significant investment in the sector in nine years, a period in which State investment in higher education fell by €463 million or 33%. The allocation being made by the Minister for Education and Skills will allow us for the first time to keep pace with demographic increases and to introduce targeted initiatives, in particular, in disadvantaged areas, skills research and flexible learning with thousands of students benefitting under each heading.

Second, to build on that initial investment, work has started on a new mechanism aimed at allowing Government to put in place a comprehensive multi-annual spending plan for the sector. The Ministers for Public Expenditure and Reform and Education and Skills are working on putting in place an appropriate multi-annual funding model for higher education and further education from 2018, in respect of which all the beneficiaries of the third-level sector can play a role. I expect the Minster for Education and Skills to bring that proposition to Government by the middle of next year.

Third, proposals need to be examined that can add to those two elements and put in place a sustainable plan for funding that can deliver a third-level system that can be world class for both the medium and long term. Earlier this year, the Minister published the Cassells report - I have said that we need to debate it in the House - and, as committed to the in the programme for Government, that report is now currently with the Oireachtas committee. Broad consensus is needed on the future direction and the Minister is working to build that consensus.

It is accepted, of course, that there is a need for investment in capital infrastructure. Some IoTs have managed, even with the difficulties they have had while others have not, and the deficit is there for all to see in the reports they have published. I can give the Deputy the details of how it is proposed to spend the €36.5 million in 2017. I reiterate that is the first significant investment in the third-level sector in nine years.

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