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

The Cassells report considers a number of potential funding options, including for deferred payment of student fees. It is currently being examined by the Oireachtas Joint Committee on Education and Skills with a view to making recommendations on a long-term sustainable funding model for higher education. This process includes receiving input from relevant stakeholders. It will be important to obtain political and societal consensus on achieving a sustainable funding model for the higher education sector in the future and my Department and I continue to work with the committee as it undertakes its deliberations.

In a follow-up to the expert group report, appropriate technical work will be undertaken by an inter-departmental group chaired by my Department on income contingent student loans in order to inform future funding policy options, including in light of recommendations from the Oireachtas Joint Committee on Education and Skills. In advance of these recommendations, however, I have taken immediate steps to increase funding for higher education, the first such increase in nine years. Increased Exchequer funding of €36.5 million was secured in this budget for the higher education sector. This includes an increase in funding available to students from disadvantaged backgrounds and other under-represented groups to assist them in overcoming financial barriers to accessing and completing higher education. Provision is also being made in the Department's expenditure ceiling in 2018 and 2019 for demographic increases which cumulatively represent an additional €160 million investment in the sector in the period 2017 to 2019.

In addition, the Department of Education and Skills and the Department of Public Expenditure and Reform are currently undertaking a public consultation process on a proposed Exchequer-employer investment mechanism for higher education and further education and training. It is estimated that the mechanism, which proposes an increase in the national training fund levy from 0.7% to 1% between 2018 and 2020, could yield close to an additional €200 million revenue in 2020. Comments on the proposal may be submitted to the Department by 5 p.m. on Thursday, 13 April. Full details of the consultation process are available on the websites of both Departments. The intention is that, taken together, these approaches will contribute to and inform the development of a long-term sustainable funding model for the higher education and further education and training sectors.

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