Ruairí Ó Murchú (Louth, Sinn Fein)
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I thank the Minister of State for coming to the House. The question concerns budgetary issues facing SOLAS and the ETBs and the detrimental impact this may have on the delivery of apprenticeships. We all know the importance of apprenticeships. I submitted this on the basis that myself, Deputy Cullinane and a number of our colleagues heard word on the grapevine about individual LMETBs saying their finances and budget had been slashed. How it was put to me is that in 2025 the budget is possibly more than €40 million less. On that basis we are looking at the possibility that when we are meant to have an intake of new trade and other apprenticeships in July, they could be put back to September or October and some of them could be cancelled.

We all know about the housing crisis and it would be unheard of if this were to happen. Usually, we would be talking in here about ramping up the delivery of apprenticeships. I met the Minister and I also met the previous Minister at the opening of facilities in my constituency involved in the training of apprentices. We want to see more of that.

This may have an impact on further education across the board. I refer to all sorts of apprenticeships, including in PLCs, and in community education whereby people study at night either part time or full time. I am incredibly worried, but I hope the Minister will set my mind at ease, and the minds of the stakeholders who have contacted us, as well as people who are looking forward to doing an apprenticeship and those who will require the apprentices. It is vital that he gives the answer that is required.

David Cullinane (Waterford, Sinn Fein)
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I too have been contacted by the Waterford-Wexford ETB. The issue seems to relate to the contract training programme for apprenticeships. My understanding is that there was a bid process previously, known as a funding allocation request, FAR, to the then Department of Education, based on the number of apprenticeships an ETB would fund and they would get the funding on that basis. Apparently, this year or last year, there was a shift and now there is an allocation as opposed to a bid.

There is also an issue due to the fact that so many of the phase 2 classes are being paid phase 4 funding and rates because of Covid. That is one of the differences. I have been told that there is a shortfall of between €40 million and €50 million across all of the ETBs. I have also been told that in the Waterford-Wexford ETB, up to 500 phase 2 apprenticeships may not go ahead in June, as they will not be called. There is very real concern in that regard. In fairness to Waterford-Wexford ETB, the number of apprenticeships has been increased. Some 1,000 apprentices now go through the doors. There is a new unit on the Waterford industrial estate that caters for an additional four phase 2 electrical classes and there is one additional plumbing class. In the Wexford FET, there were four additional electrical classes, one plumbing class and one metal fabrication class. In the Kilcohan training centre, there is an additional electrical class and also a brand new wood manufacturing class. I expect the Minister will agree that all of these are very important. We want more apprenticeships but there seems to be a funding issue, which we are being told about. We are asking for clarity from the Minister. We are being told this could have an impact on some of the classes due to go ahead in the summer, or that will not go ahead, as the case may be. I do not want to see that happen. Deputy Ó Murchú does not want to see it happen. I am sure the Minister does not want to see it happen. We are trying to establish whether there is an issue, what it is, if the Minister is across it and if it will be resolved.

James Lawless (Kildare North, Fianna Fail)
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Gabhaim buíochas leis na Teachtaí as an gceist seo a ardú. I thank the Deputies for raising this important matter.

As the Deputies opposite are most likely aware, SOLAS is the State agency responsible for the further education and training sector. A key part of its remit and duties is to allocate funding to the education and training boards to deliver further education and training programmes, including apprenticeships, in alignment with Government priorities. I prioritised the partnerships, which are critical to the success of many of our national challenges, including construction, but also across the board.

I support the apprenticeship system to the extent of broadening and widening it and increasing the number of courses and occupations that can be accessed through the apprenticeship journey. I am very much committed to that path. I also very much want to support the system and to grow it. However, issues have arisen operationally and that is part of the reason we are having this debate.

Each ETB within the system is responsible for ensuring its activities are delivered within the scope of its allocated funding. Engagement occurs between SOLAS and the ETBs on a regular basis and there are annual reviews. Through the ongoing engagement, a funding pressure has recently been identified for the 2025 apprenticeship budget. This pressure is primarily linked to the cost of State allowances paid to apprentices during their off-the-job training phases. Like the Deputies opposite, I have heard about this both officially and on the grapevine. It is an issue that has emerged very recently.

I assure colleagues that the issue is being taken very seriously and that a pathway forward will be found. SOLAS is currently actively engaged with the ETBs and my Department to identify practical and sustainable solutions. I am taking a very keen interest in the discussions, which are ongoing. I am adamant that a solution must be found.

The demand across the system has grown significantly, especially in the area of craft apprenticeships, with yearly registrations increasing from 5,271 in 2019, up by 35% to 7,113 in 2024. There is an ongoing significant uplift in demand that is placing pressures on apprenticeships. That is a good thing because we want more apprentices in the system, but it does require greater supports and resources to be made available.

Overall, there were 25,000 craft apprentices at the end of 2024, up from 16,000 in 2019. One of the Deputies mentioned the previous backlog in phase 2, which has largely been addressed, but it moves the demand curve up to phase 4. The ongoing pressures have, thankfully, moved through the system, but they are still within the system. The bump is moving along and it is now at the phase 4 stage, which brings its own pressures.

The growth in the system is very welcome. It is also necessary, given the vital role apprentices play, largely in the construction sector, but also in delivering many other key Government priorities such as housing, retrofitting, infrastructure development, energy and in other areas such as telecoms, which are key to our national success.

It is important to acknowledge that there is an inherent complexity in managing a system that is demand-led with a finite funding envelope. Put simply, demand in a given quarter or year can rise or fall, and it can be difficult to accurately predict or model that and then to support and resource it.

The Government has a very strong and sustained commitment to apprenticeships. I wish to make it clear today that no apprenticeship course or class will be cancelled as a result of the current situation. Since the formation of my Department, investment in apprenticeship training has increased by 139% from €142 million in 2019 to €339 million in 2025. There has been more than a doubling of funding. This includes a record €77 million investment as part of budget 2025, the largest ever allocation to the apprenticeship system in the history of the State.

Ruairí Ó Murchú (Louth, Sinn Fein)
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I welcome the statement by the Minister that no apprenticeship class will be cancelled. I assume that also means none will be paused. I would like to think there will not be any major cuts across the service in the further education area.

The Minister said the situation has just arisen. Could he explain how this was not foreseen at an earlier stage? I welcome the fact that he is addressing it. Could he give us a timeline for when this will be settled because the reason we have all heard this, both officially and unofficially, is people are very afraid due to the difficulties that have arisen. We must ensure that there is sustainable funding for further education, in particular apprenticeships, because we spend half the time in here talking about the necessity to build more houses. It would not do if we were not providing a sufficient number of apprenticeships. That is accepting the complexity of the issue, as outlined by the Minister.

David Cullinane (Waterford, Sinn Fein)
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The Minister has acknowledged that a funding pressure has been identified so we know there is an issue. The question then is how it will be resolved. I welcome that the Minister said no class or apprenticeship will be either suspended or cancelled. I have been told by the Waterford-Wexford ETB that many of the phase 2 classes for July have not been called, which could affect up to 500 apprentices. It covers very important trades like carpentry and the other trades and skills we need, for example, to build houses. I welcome what the Minister said, in so far as it goes, but could he perhaps provide more clarity on the situation? He is saying this is not going to have an impact on classes being called, yet I have a note that states no apprenticeship class scheduled for July has been called in the Waterford-Wexford area. How does that square with what he said? Has there been some movement since contact was made with us? If that is the case, that would be fantastic. It would be a step forward. Perhaps the Minister could clarify that.

James Lawless (Kildare North, Fianna Fail)
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I am not impressed with the situation either. I would prefer if we were not in this situation. Sometimes in politics, we have to play the hands that we are dealt. Sometimes we would prefer they are different but they are what they are and we have to make the best of them. My job as Minister is to manage the situations that arise.

I have said no class will be cancelled. I did not say anything else. There is a reason for that. I am adamant that no class will be cancelled. I will not say anything beyond that, other than SOLAS is working with the ETBs on an ongoing basis to manage scheduling and how the classes are delivered and their timetables. That will correspond to the budgets they have available to them.

That is an ongoing process between SOLAS, an independent agency, and the ETBs. They have that ongoing engagement and will continue to work together. They are fully supported by officials from my Department to get to the bottom this issue in terms of unlocking the resource challenge and moving things forward. The Government, the Department and I am committed to the overall system and to reaching the targets. In the programme for Government, there is a target of having 12,500 apprentice registrations per annum by 2030 and ensuring the successful retention and progression of apprenticeships. That remains a priority for me and the Government. We want to address the funding pressures.

I might come back to the Deputy in due course with the roadmap. I am not in a position to provide it at the moment. However, I can reassure Deputies that this is a very live issue and that it is being actively worked on. I am intent that it will be resolved, but we are a little away from determining the mechanics and outworkings of that just yet. I ask the Deputies to give me a little time to work that through, and perhaps I will update them in due course.