Mary Mitchell O'Connor (Dún Laoghaire, Fine Gael) | Oireachtas source

I am pleased that budget 2019 has delivered for higher education. On budget day, I announced three different funding streams: a capital funding stream, the current core funding stream and a new funding stream called the human capital initiative, HCI, stream.

In current and capital spending, new programmes and initiatives will make a major difference to our third level landscape. I am particularly enthusiastic about the new multi-annual HCI scheme. It will be a transformative development for the third level sector. From January 2020, exactly 14 months ago, the HCI will be set up to invest €300 million over the period 2020 to 2024. This ring-fenced allocation of €60 million each year will be a key part of the Government's strategic response to Brexit and other challenges facing the economy. The HCI will be funded from the surplus in the national training fund, and has been made possible by the reform of the fund. The initiative will ensure our higher education institutions can meet the skill needs of our growing and rapidly changing economy. It will mitigate Brexit risks, boost regional development, and realise the objectives of Project Ireland 2040 and our future jobs programme. Now that our economy is approaching full employment, we need to plan for the jobs of the future - jobs that will be crucial in 20 years' time. There are challenges to which I am confident that our higher education institutions will rise. I am pleased the initiative has been so warmly welcomed by the Technological Higher Education Association.

Budget 2019 also provides an additional €57.4 million for new measures in current spending. This is in addition to the separate allocation of €41 million for pay restoration and pension costs. Excluding the latter two items, this means that current spending on higher education has risen by 10% since 2016. We will create places for approximately 3,500 new students. We will also continue to move forward on the reforms to the higher education funding allocation model. We will provide €10 million for innovation and performance funds, and €5 million for building, teaching and learning capacity. There will be €5 million in the new research and innovation fund for institutes of technology. There will be an enhancement and strengthening of services in mental health and counselling, as well as an action plan for safer campuses. Overall, higher education current expenditure will be €1.76 billion in 2019.

On the capital side, we plan to spend €138 million in 2019, compared with €70.6 million in 2018, which is almost twice as much. We will spend €532 million over the next five years. The key projects we have announced recently include the science, technology, engineering and mathematics, STEM, facilities in Dundalk Institute of Technology, a new engineering building for Limerick Institute of Technology, LIT, upgrades to the Galway-Mayo Institute of Technology Castlebar campus, a future-technology building at Dublin City University and a new sports science, health and recreation building at Institute of Technology Tallaght. More will follow. Project Ireland 2040 provides for a near-trebling of the higher education capital budget compared with the past decade, from €0.8 billion to €2.2 billion.

Budget 2019, in current and capital spending, is hugely significant for higher education. It turns the corner in restoring our institutions to a strong footing to meet the needs of our economy and society. I listened carefully to the many voices in this sector. I have met the presidents of all the institutions, visited the campuses and seen the facilities, and spoken to the stakeholders and the students. I know what is needed. I am pleased that after a difficult decade, we are delivering.

I wish to acknowledge that our investment in higher education is based on resources provided by the Irish taxpayer. As Minister of State, my focus is on one key person: the student. I am determined that next year and beyond our taxpayers, parents and citizens will see value for money and excellent outcomes from the students at our third level institutions. We will all benefit.

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