Brian O'Shea (Waterford, Labour)
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I thank the Chair for the opportunity to raise this most important issue for Waterford and the south-east region. While I have the utmost respect for the Minister of State, I lament the absence of the Minister for Education and Science to address the issue.

In February 2006 Waterford Institute of Technology confirmed that it had made a formal application to the Department of Education and Science in pursuit of university designation. The submission embraces constituent campuses throughout the south east. At the time a spokesperson for WIT stated: "The expectation is that a national and international panel of respected higher educationalists will adjudicate on the merits of the Institute's case and their report will be submitted to the Higher Education Authority". Section 9(1) of the Education Act 1997 states: "The Government may at any time appoint a body, the membership of which shall be recommended by An tÚdarás [An tÚdarás in this case meaning the Higher Education Authority] and shall include international experts, including employees of Universities to which the Act applies to advise An tÚdarás having regard to the objects and functions of a University under sections 12 and 13, under which an Education Institution should be established as a University."

It is early October and this national and international panel of respected higher educationalists has not been set up. Last week I tabled a parliamentary question to the Minister for Education and Science regarding when it is proposed to refer the submission of Waterford Institute of Technology on upgrading to university status to the independent group for appraisal. The Minister, in her reply, completely evaded the question. The reply was nothing other than a fob-off regarding this vital issue for the future development and prosperity of Waterford and the south-east region.

My fears and suspicions that the Minister has no intention of setting up the panel, which is the next urgent necessary step in the provision of a university in the south east have, unfortunately, been realised. The Minister stated in February 2005: "It should be noted that last September's OECD Review of Higher Education in Ireland recommends that the differentiation of mission between the University and the Institute of Technology Sector be preserved and that for the foreseeable future there be no further institutional transfers into the Universities Sector." This is Government policy. However, a strategy is in place to conceal the reality and give the impression of progress in the upgrading of WIT to university status because nothing is happening.

In her reply to my parliamentary question, the Minister referred to a very detailed statutory review process and said significant wider issues need to be considered in progressing the case. She also alluded to the Institutes of Technology Act 2006, which brings institutes of technology under the remit of the HEA, and to new managerial and governance freedoms that will allow the institutes to develop their roles. This is a load of waffle. While these issues arise, the central issue is whether the body of international and national experts agrees WIT should be established as a university. That is the basic issue and everything else follows from that.

There are major concerns regarding the economic performance of the south east. According to data from the Central Statistics Office, per capita income in the region is only 89.5% of the national average. The region is also overly reliant on poorly paid self-employment. According to a report commissioned by Waterford Chamber of Commerce and carried out by Goodbody Economic Consultants, more than 2,000 jobs would be created directly or indirectly by the upgrading of WIT to university status and, in addition, a further €100 million would be generated for the local economy. There is no more important addition to the infrastructure of the region than a university. There is a significant need to grow the research and development capacity and knowledge base of the region, the traditional industrial base of which is being eroded. The crying need is for capability building with regard to industry based on the best of modern technology. I demand that the Minister immediately announce when she will establish the body of national and international experts to advise the HEA in regard to the Waterford Institute of Technology submission to be upgraded to university status. If the Government prevaricates and delays, it will pay a very dear price come the next general election.

Noel Ahern (Dublin North West, Fianna Fail)
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In February 2006 the governing body of Waterford Institute of Technology wrote to the Department of Education and Science requesting a review of its status under section 9 of the Universities Act 1997. The provisions of section 9 state that the Government may appoint a body, which will include international experts, to advise the Higher Education Authority on whether, having regard to the objects and functions of a university, an educational institution should be established as a university. On the advice of the body and the recommendation of the authority, the Government may, by order, provide that the institution shall be a university for the purposes of this Act.

The submission from Waterford Institute of Technology seeking university status remains under consideration by the Department. Aside from the very detailed statutory review process that is required in progressing an application, there are also significant wider issues that need to be considered in advance of any statutory review. For example, there have been important wider policy developments in the overall higher education sector that are relevant in this context. In particular, it is important that account is taken of the very significant recent changes in the overall legislative framework governing higher education, with the passage of the new Institutes of Technology Act 2006 at the end of the last Dáil term, as well as wider Government policy on foot of the review of Irish higher education carried out by the OECD in 2004, the broad thrust of which was endorsed by the Government.

A central purpose of the OECD review was to support Ireland's strategic ambition of placing our higher education system at the front rank of the OECD in the context of the wider national objective of developing as a world-leading knowledge economy and society. A key recommendation made in the OECD report to the Government was that Ireland should retain the differentiation in mission of the university and institute of technology sectors, which it identified as a key strength of our system, and that there should be no institutional transfers into the university system for the foreseeable future. The report also recommended that the universities and institutes of technology should be brought together under the remit of a single authority for the purpose of achieving a unified higher education strategy. It further recommended that the extent of external regulation of the institutes of technology should be lightened, giving them greater managerial freedom in responding to the opportunities and challenges of supporting regional and national social and economic development.

The new Act addresses significant elements of these recommendations and marks a major milestone for the sector and for the development of higher education. The Act provides for greater autonomy for the institutes to fulfil their missions. By bringing them within the remit of the Higher Education Authority, it will support an integrated and cohesive strategic approach to the development of higher education in line with national priorities. The Act means that, in practice, the HEA and the institutes of technology will engage and relate in a way that is very similar to the way the HEA and the universities engage.

There are a number of areas where the current operation of the institutes will alter as a consequence of the role of the HEA, such as on budgets and finances, where the HEA will determine an institute's budget in line with the funding relationship that exists between the HEA and the universities. The HEA will assume a role in establishing formal arrangements to permit institutes to borrow or to underwrite borrowings, again in a manner similar to that prevailing in the university sector, allowing a greater level of institutional flexibility and responsiveness. The Department's role in regard to the approval of research, consultancy or development work or the acquisition of land will devolve to the HEA. Similarly, specific approval from the Department to run individual courses or programmes will no longer be required.

The new arrangements will provide for a more autonomous and strategic relationship with Government, through the HEA, reflecting the dynamic and competitive nature of the environment in which the institutes are now operating. The Minister for Education and Science is cognisant of the strong support that has been built in the south-east region around the application from Waterford Institute of Technology for university status. However, the relevant wider policy developments I have outlined are also fundamental to her consideration of the appropriate next steps in regard to the application. The Waterford application is currently being carefully assessed in that broad context.