Richard Bruton (Dublin Bay North, Fine Gael) | Oireachtas source

I agree with Deputy Byrne. This is a major priority for me. The national strategy for higher education to 2030, which dates back to the Hunt report, sets out a very ambitious agenda that aims to improve significantly the performance of Ireland's higher education system with regard to quality, breadth of participation, attainment levels and the establishment of a sustainable and equitable funding model. The expert group on funding for higher education, under the chairmanship of Peter Cassells, was established to develop a strategy for funding the third level sector. The report was published in July and is now with the Joint Committee on Education and Skills. I look forward to working with the committee to work out a viable, long-term funding model that we can all support.

While Cassells deals with the medium and long-term funding needs, we also have to consider the immediate challenges. In that context I am pleased that we placed a particular focus on this area in budget 2017 and I secured additional funding for the sector for the first time in about eight years. Higher education is a particular focus.  It attracted €36 million in 2017. It significantly achieved a change in that the demographic increase has been built into the Estimates for the coming year. An additional €160 million over the next three years has already been committed to. This will allow the sector to keep pace with demographic increases. It also has very targeted initiatives in areas such as disadvantage, skills, research and flexible learning. Among those who will benefit from the additional third level funding being made available are students from disadvantaged backgrounds, lone parents and Travellers.

In budget 2017, the Minister for Public Expenditure and Reform and I announced a policy review with the aim of designing and implementing a sustainable and predictable multi-annual funding model for higher and further education and training involving increased employer and Exchequer contributions from 2018. This review will be undertaken as part of the overall response to meeting the anticipated skills needs in the economy over the coming years in line with the national skills strategy. The review will include an analysis of the case for enhanced investment in higher and further education.  In this context, it will identify key elements of the new funding model and the expected impacts, including those on employers. The review will include consultation with stakeholders. It will be published by the end of April 2017 and will complement the ongoing work by the Oireachtas committee on the Cassells report. 

The sector has proved itself to be flexible and dynamic over the recent period and has continued to offer high-quality programmes and to undertake world-class research. Surveys of both students and employers have confirmed high levels of satisfaction with the system. Inevitably, concerns are being expressed about the capacity of the higher education system to sustain quality as demographic and funding pressures grow. That is why we are undertaking this work.

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