James Lawless (Kildare North, Fianna Fail)
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I move: "That the Bill be now read a Second Time."

I am pleased to have the opportunity to address the House and present the National Training Fund (Amendment) Bill. This Bill, as is evident from its Title, amends the National Training Fund Act 2000. The National Training Fund, NTF, was established by the National Training Fund Act 2000 as a dedicated fund to raise the skills of those in employment and to facilitate lifelong learning, provide training to those who wish to acquire skills to take up employment and provide information in relation to skills requirements in the economy.

As Minister for further and higher education, I am responsible for the overall management, monitoring and evaluation of the fund, while the Minister for Finance manages and controls the investment account contained in the fund. The fund is financed through a levy on employers, which is collected through employers' PRSI contributions. Currently, the NTF levy is set at 1% on reckonable earnings, following annual increases of 0.1% across the budgets from 2018 to 2020. A key priority of the fund is to strengthen and shape existing skills and to develop new higher education and further education and training provision to ensure alignment with workforce reskilling, upskilling and lifelong learning requirements. This is essential to deliver on the talent needs of the economy and strengthen Ireland’s competitive position and our reputation for an agile and responsive workforce. At the end of 2024, the NTF's accumulated surplus was approximately €1.77 billion. Although that is high, it should be noted that a prudent level of reserves within the NTF, usually taken as an amount equivalent to a year's expenditure, is necessary to be maintained to guard against the uncertainties of the economic cycle and to ensure sufficient resources are available to deliver programmes when and as required. On four previous occasions where NTF expenditure has exceeded income, the accumulated surplus was then used to address the annual shortfall. The last time that happened was in 2014.

The priorities underpinning the NTF have changed and varied over time depending on economic cycles and skills demands in the economy. Between 2014 and 2025, the funding priorities of the NTF have gradually changed. Provision for upskilling of those in employment has increased from around 17.7% or €61 million of the total NTF allocation to circa 46% or €464 million of the NTF allocation in 2025. During 2024, consideration was given to how the NTF surplus could be most effectively accessed and utilised to meet the existing and future skills for employees, those seeking employment and employers, together with addressing the funding needs for further and higher education, within the spending parameters of the annual budget. The NTF surplus package announced in budget 2025 is a six-year plan to reduce this surplus through spending a total of €1.485 billion progressively over the period commencing this year. This significant NTF investment package provides for expenditure on new training and skills provision areas that were not previously funded, including enhanced funding for higher education, research expenditure, including increases in the PhD stipend, and capital expenditure.

However, it is important to note that NTF expenditure on existing services will be retained. NTF expenditure increases general Government expenditure and it can only be accommodated within the fiscal strategy agreed by the Government. The new NTF surplus funding package, therefore, is encompassed within these ceilings. It is not additional to but is contained within the Department's fiscal ceiling.

During 2024, when the progression of the fund was being explored and agreed, legal advice was sought on proposals to fund some capital expenditure from the fund. The legal advice received notes that an amendment to the NTF Act is required to facilitate capital expenditure on land and on infrastructure. Legal advice was also sought during the drafting of the Bill on whether an amendment to the NTF Act was required to facilitate core funding for higher education and research and innovation expenditure. The advice received was that an amendment was not necessary because facilitating enhanced higher education funding and research and innovation funding within the scheme met the purposes of the Act. Such expenditure is already in line with the targets and goals of the Act. The National Training Fund (Amendment) Bill, therefore, makes minimal amendments to the NTF Act and merely provides for capital expenditure from the NTF. This will ensure that the new NTF expenditure announced in budget 2025 can be provided from 2026 onwards.

Budget 2025 delivered a total NTF funding package of €1.485 billion over a six-year period from 2025 to 2030 for the tertiary sector, including €885 million in current funding, an increase in funding for higher education by a further €150 million per annum up to 2030, and one-off current funding of €235 million for the tertiary sector including skills and apprenticeships. Additionally, a €600 million capital uplift was provided to enable skills development, including facilities, in the areas of healthcare, veterinary skills and further education skills and to support universal access to skill provision. In the research and innovation sector, there was an increase to the PhD stipend among other things. This funding will provide key education and training facilities and opportunities for employees and those seeking employment. The funding will also assist in meeting the existing and future skills needs for employers. The National Training Fund is a strategic national asset for reskilling and upskilling our existing workforce and the NTF funding package of nearly €1.5 billion will deliver a substantial and impactful investment to deliver the critical skills needed for the 21st century.

I will now outline the main provisions of the Bill. As I said, it is short, modest and minimal but it is very important legislation. The Bill provides for minimal amendments to the National Training Fund Act 2000. The Bill does not amend the purpose of the NTF Act, which is to fund schemes established to raise the skills of those in employment, provide training to those who wish to acquire skills for the purposes of taking up employment, or provide information on existing, or likely future, requirements for skills in the economy.

The Bill contains two sections. Section 1 amends section 7 of the National Training Fund Act 2000. This section provides for the insertion of a new section 7(2B) to provide that payments from the National Training Fund in respect of a scheme may include payments in respect of the acquisition of lands, premises, furniture or equipment or the upgrading, construction or reconstruction, including repair and maintenance, of premises. It is important to note that these payments must be made in accordance with a scheme to raise the skills of those in employment, to provide training to those who wish to acquire skills for the purposes of taking up employment or to provide information in relation to existing, or likely future, requirements for skills in the economy.

Section 2 contains the Short Title and commencement. This is a standard head in any legislation that sets out the Short Title by which the Bill will be known and allows for the commencement of the Bill.

Consultation has been undertaken on the proposed amendments to the NTF Act with the key stakeholders including the National Skills Council and the high-level skills implementation group. There has been a general welcome for the proposed amendments including a welcome for the NTF budget package. All stakeholders agreed that the NTF funds should be used effectively and that spending should align with the fund’s core objectives. I have listened to the stakeholders on this issue and there are no amendments in this Bill that alter the core objectives of the fund. Stakeholders also stressed the importance of tracking and reporting on the impact of the NTF funding on raising the skills of those in employment and those taking up employment, including a request for publication of a comprehensive record of spending. I am awaiting receipt of an ESRI report to develop a framework to monitor and assess the effectiveness of the various schemes funded under the NTF. The recommendations will be reviewed on its receipt and this issue will be addressed.

Some stakeholders raised some concerns in relation to ensuring that capital expenditure, including on decarbonisation projects, aligns with the purposes of the NTF. I have noted these concerns and assurance can be given that all NTF funding will be spent in accordance with the established purpose and original objectives of the fund. All infrastructure investment will be in accordance with the purposes of the Act and will add capacity in the system to deliver new skills programmes or expand existing skills programmes to benefit learners and industry, employees, employers and future employees. Decarbonisation will arise as part of refurbishment of infrastructure to enable space optimisation and adaptive re-se of existing building stock or other appropriate capital works that are necessary to provide appropriate facilities for the delivery of education, training and skills programmes. The objective of all works will be to enhance the learning environment, add capacity and aid the delivery of the skills needs of the country.

There is ongoing engagement with the National Skills Council, the high-level skills implementation group, key Departments and others on a range of skills and labour market issues. This will continue to ensure effective usage of the NTF in meeting the skills needs of the economy and in progressing the skills development agenda. Talent and human capital are the bedrock of Ireland’s economic performance. Talent is our greatest natural resource. The success at the heart of Ireland’s economic model over the last 50 years has been our commitment to education, training and innovation. That commitment has transformed our workforce, economy and society. For the last 25 years, the National Training Fund has been a strategic national asset for reskilling and upskilling our existing workforce. It is central to providing the future workforce with the skills to be successful. The NTF has also been critical to unblocking some of the barriers to engagement in workforce development, such as by providing targeted supports to key cohorts. Businesses are the backbone of our economy and the Government is committed to creating an environment where they can thrive, innovate and drive job creation. I am committed to the continued use of the National Training Fund as a strategic national asset for reskilling and upskilling our existing workforce. This Bill will ensure that the NTF can also be used to fund capital expenditure on essential projects and facilities for reskilling and upskilling our workforce, which will assist in meeting the skills needs of our economy and progress the skills development agenda.

I commend the Bill to the House and look forward to the debate.

Donna McGettigan (Clare, Sinn Fein)
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I welcome this Bill and thank the Minister for bringing it forward. I also welcome his commitments on this. The NTF was established by the National Training Fund Act 2000 as a dedicated fund to support the training of those in employment and those seeking employment. Its aim is to support the development of a highly skilled and adaptable workforce, ensuring that Ireland remains competitive in a global economy. The Act also provides for the funding of the provision of information on existing and likely future skills requirements of the economy. On paper, this is exactly what is needed for the country. However, between 2014 and 2023, the funding priorities of the NTF significantly and drastically changed. To put this in perspective, in 2014, more than 82% of the National Training Fund was spent on training programmes for employment, compared with only 55% in 2024.

The funding deficit in the university sector was first identified in the Cassells report back in 2016 and was the result of the austerity measures following the economic crash, when funding to third level institutions was cut. To make up the funding shortfall, a student contribution was introduced. Austerity measures are long over but the promise that these cuts to the third level sector would be reversed has not been fulfilled.

The Minister said that this package will help to deliver the education, training and research needed to keep pace with a fast-changing world. It will support thousands of learners each year across further and higher education institutions, apprenticeships and new upskilling pathways, producing skilled graduates who are ready to contribute to a dynamic and competitive economy. However, we are still seeing the knock-on effect of this funding deficit, with cuts to ETB funding. These cuts hurt ordinary communities. I give the example of a local training initiative, LTI, in Cashel, which was such a valuable part of the community in which it operated. Fourteen early-school leavers aged 16 embarked on a successful LTI programme to provide them with a level 4 major award and the option of progressing to level 5 this year, which would have given them the equivalent of an honours leaving certificate. Instead, this LTI course was cancelled, leaving learners devastated and their educators totally stranded and made redundant, with no supports to fall back on. This was disgraceful. In communities up and down the country, opportunities are being provided through LTIs, like the one in Cashel, for people to upskill, further their education and build a career path.

We need to place way more value on the education and training boards, which badly need the Government to expedite their commitment to further NTF funding for the further and higher education sector. It is unacceptable that member ETBs continue to face funding constraints in infrastructure and learner access when there is funding there that could improve these.

Our skills and labour market should also be at the heart of the NTF. In July 2025, the National Skills Council made its first tranche of recommendations to the Government, which included the establishment of a national skills observatory to create a unified repository of information on skills and the labour market, and targeting leveraging of the NTF. There are also many repercussions from the perspective of the economy. The business lobby group ISME raised concerns that employers will lose faith in a 1% levy imposed on them being channelled to a purpose other than intended by law. The group has also called for Government consultation with the SME sector on any such plans. It is already predicted that an additional €3 billion of unspent employer contributions could accumulate by 2030 if a permanent solution to unlocking the training fund is not found. This is an extremely worrying trend for industry when eight in ten employers in Ireland are experiencing a skills gap, and it is undermining the competitiveness and productivity of Irish workers. In this case, the unlocking of this fund will be welcome.

Another worrying issue relating to the NTF is around the status of lreland’s national research innovation. Last June, The Irish Timespublished an article reporting that leading Irish business lobby group IBEC had described Ireland’s national research and innovation infrastructure as becoming "obsolete and out of date". We are way behind in Ireland’s public investment, with just 13% of the €8 billion national spend on research and innovation. According to IBEC, the State spends €199 per person on directly funding research and innovation, compared with the EU average of €274. To improve national research capability, IBEC has also called for the use of the National Training Fund to attract skilled research talent, as well as investing in developing the domestic workforce, by “expanding and subsidising pathways for skills development". My party colleague Deputy Mairéad Farrell previously drafted an amendment to Bill to allow the NTF to support the sector’s research infrastructure but it was ruled out of order. Furthermore, within the tertiary system, the Government's failure to act has seen some universities under considerable pressure around recruitment, with some posting financial deficits. Deputy Farrell stated in 2024 that the Government had not provided enough funding to the sector to cover the cost of the wage increases that had arisen from the public service pay deal and that a supplementary budget to deal with this issue was needed. Here we are two years later and we are no further along. Clearly, this is due to the lack of dedication for the fund to help the sector.

We in Sinn Féin support this Bill but work is needed to tease out what exactly the Minister intends to use unlocked NTF moneys for. We will determine after Second Stage whether further amendments are necessary. We need to make sure the funds go to where they are needed but also to what the fund is intended for, and to ensure the fund will have enough money for upskilling.

The Minister mentioned repair and maintenance, but the gov.iewebsite states it is intended to use capital payments from the National Training Fund for retrofitting and decarbonisation. Does that really fall under the remit of what this fund is for? At the end of the day, successive Governments have created funding deficits in the university sector, which could threaten the viability of lrish universities. Therefore, while we are supportive of measures unlocking NTF funding, we need to be alert to its spending. We do not want to see it being used for uses for which it is not intended, thereby leaving the fund unable to be used for its intended use.

Rose Conway-Walsh (Mayo, Sinn Fein)
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I welcome the opportunity to talk about the National Training Fund because, as the Minister will know, we have long wanted to unlock this fund. It is, as was said, the fund that employers and hard-pressed businesses have paid into. They feel they have got very little back for the payments that have been made and they have been seeing the figures accumulate over the years. I have some concerns about this fund and what the Minister is proposing for it. We need further discussion on the detail of how this will be done. The first thing I would propose to the Minister is around the consultation that has happened on the unlocking and what it will mean. Has there been consultation with IBEC and ISME, the employer representative groups, to get their opinions on it? Obviously, these groups are dealing with hundreds of businesses and will know what businesses need in terms of training.

Are there any caps on the amounts of money that can be used in the different areas? If we say, for instance, that the fund can be opened up to the purchase of land, as the Minister knows, infinite figures could be locked in that way. Again, I would like to see caps in these areas if he is considering that.

We have a €306 million deficit in further and higher education and that is quite disgraceful. It really has not been addressed in any meaningful way. I do not want the National Training Fund to be suddenly used to plug all of the gaps. I absolutely recognise the need for investment. There has not been the investment in the technological universities that was promised. They can be much better used to support the very businesses that have paid into this fund.

We are told that carbon tax is being used for decarbonisation and to meet our targets. Again, I am very concerned about the amount of money that can be eaten up in that space. I agree 100% that there needs to be decarbonisation on the part of all of the higher education institutes but I cannot see how the National Training Fund can or should be used. That has to be an investment from the other funds that are being set aside for that.

Has the Minister done an assessment of the allocations of the moneys? I really need to see further detail on that. If the Department could supply us with a further briefing paper on what might be done, that would be helpful. As a party we want to work with the Government but we do not want to end up in a situation where this fund is gone. Our competitiveness that we talk about every day of the week is at a very critical point. The driver for our competitiveness, or how we are going to ensure it into the future, is an educated labour force. It will ensure we remain competitive into the future. We have so many changes in this space, from the development of AI and technologies to everything else companies are faced with. Right across the island, we have not had the emphasis we have needed on lifelong learning. I refer to lifelong learning for everybody, including for people with disabilities and other people who need to be able to participate fully in the workforce. I am also watching our productivity rates in terms of how we address the gaps there to remain competitive. The National Training Fund, first and foremost, should be used for that lifelong learning before it is used for anything else, to ensure all the gaps are addressed there.

I also want to see the National Training Fund being used for the North-South initiatives and the change of learning there. Under the shared island unit, we could have much better collaboration whereby somebody in the North may be able to do part of an apprenticeship in the South and vice versa. That brings all kinds of value with it.

That is probably all I will say about it at this point. As our party's spokesperson on further and higher education, Deputy McGettigan, said, we reserve the right to make amendments to what the Minister is proposing but we want to work constructively with him. I really want to know about the depth of consultation that has taken place with the employer representative groups and with the unions as well. That is critical because we have such a large amount of money here to be able to deal constructively with and we want to ensure its potential it is maximised. Go raibh míle maith agaibh.

Ruairí Ó Murchú (Louth, Sinn Fein)
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This is not the first time the Minister and I have had an interaction on this matter this week. It is all the better for doing it in Ireland as opposed to over in Surrey, at-----

James Lawless (Kildare North, Fianna Fail)
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We interact every week.

Ruairí Ó Murchú (Louth, Sinn Fein)
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Yes. We are always here.

James Lawless (Kildare North, Fianna Fail)
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A regular correspondence.

Marian Harkin (Sligo-Leitrim, Independent)
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From the north east.

Ruairí Ó Murchú (Louth, Sinn Fein)
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That is it, and at some point there will be no need, when all the issues are dealt with. I await that day.

James Lawless (Kildare North, Fianna Fail)
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I look forward to it too.

Ruairí Ó Murchú (Louth, Sinn Fein)
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Utopia.

I am going to agree with Deputies McGettigan and Conway-Walsh - I do not think there will be any shock about that - and we reserve the right to make a determination around this. That answer will be determined by what the Minister intends to use the unlocked moneys for. If there is any detail that could be provided on that in the follow-up statements, it would be an absolute necessity.

I will also follow up on what Deputy Conway-Walsh said about the Government needing to make sure that there has been supreme engagement with the employers, those who represent the workers and all those educational stakeholders who would also be involved in this conversation. We also want something that is reactive to the needs not only of industry but also of employers. We spoke earlier about the Advanced Manufacturing Training Centre of Excellence in Dundalk. We have all seen what has been done there from the point of view of engagement from industry and the point of view of what can be delivered. We are talking about courses that suit not only the employee but also the employer and we are making sure we provide those necessary skills.

I will also follow up on some of the cross-Border scenarios. The Minister and I engaged earlier in the week. There is a need to look not only at the entry points to apprenticeships or third level, but also at something more streamlined in relation to UCAS and CAO. Then we have to look at certification, particularly for apprenticeships and the difficulties that exist there. We have known about an awful lot of these issues for a long time. We have the North-South ministerial bodies and all those cross-Border bodies and even east-west bodies. There are a number of issues that have persisted cross-Border for a number of years and they need to be addressed now. Some of that stuff falls completely within the Minister's bailiwick. The Tánaiste and others spoke about a possible hub or clearing house to action and deal with these issues. That is a necessity.

We will also have to deal with the fact that we have an underfunding issue in universities. Plenty has already been said about the cost-of-living crisis and the fact that many are not impressed that they have to pay more for student fees. I know the argument the Minister will make back, but at this point we need to address those issues. I do not think the budget did anywhere near what could have been done, but so be it.

While we are dealing with this issue, he will not be shocked to hear me say that there is a need, when we look at the overall and when we talk about tertiary education, for us to deal with the issue of disabilities and the issue of the personal assistants, who do vital work in the further education colleges. He met with me and a number of them. The Minister has assured me - and I imagine my parliamentary question about this will be answered at some point today and I will see this in writing - on the fact that there is a review under way of disability services across third level. That will play a vital part in relation to the WRC from the point of view of ensuring that personal assistants get a proper all-year-round contract. Anyone who is aware of these issues will realise that they are working on term time, with all the issues that causes with social protection. They do vital work in engaging with those who require added supports to stay in third level education. That is a piece of work that absolutely needs to be done.

The Minister, like previous Ministers, has visited my constituency a number of times. A huge level of work has been done by LMETB, but the regional skills centre is one thing that is not up to spec at the moment. The general idea from the Department is that the best-case scenario and what should be looked at in Dundalk is the idea of a college of the future. That is absolutely necessary. Then proper decisions could be made on planning for some of the ETB schools that are connected with the likes of O'Fiaich and whatever else. We can get an all-round solution that will work across the board. I have no doubt that the Minister will absolutely support the ongoing work as regards DkIT, which obviously did not become a technical university, TU, but has a memorandum of understanding. Between itself and Maynooth, there are a number of synergies and a coming together. It is the idea of a team that can become better than the sum of all its individual parts. We need to ensure that that happens.

When the Minister and I attended BIPA, a number of speakers mentioned the need for a piece of work probably done, North and South, on ensuring that students, even with the difficulties that exist at the moment, which we need to deal with, are aware of the various courses that they can go to in the opposite jurisdiction. Now, do not get me wrong. I obviously will be absolutely delighted when we finally get to a place where it is a single jurisdiction, and I have no doubt that-----

James Lawless (Kildare North, Fianna Fail)
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As will I.

Ruairí Ó Murchú (Louth, Sinn Fein)
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That is it, and I would like to see the Minister have conversations with those within his party and his Government from a point of view of making sure those necessary pieces of work are done to make things better now and to prepare for that because there has been a lack of work done there.

Paula Butterly (Louth, Fine Gael)
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Thank you, Deputy.

Ruairí Ó Murchú (Louth, Sinn Fein)
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I think I will finish up now. I would not like to go over time anyway, Chair.

Paula Butterly (Louth, Fine Gael)
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You are over time.

Ruairí Ó Murchú (Louth, Sinn Fein)
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No. There is still time on the clock.

Paula Butterly (Louth, Fine Gael)
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Use your time quickly and beneficially.

Ruairí Ó Murchú (Louth, Sinn Fein)
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I thank everyone for their flexibility. I ask the Minister to come back with the answers to those issues and I ask that we would get the answers in relation to the National Training Fund so we could make a determination. We all want to support, work and deliver.

Duncan Smith (Dublin Fingal East, Labour)
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The Bill before us is not complicated. It makes a small, focused change to the way in which the National Training Fund can be spent. We in the Labour Party have long advocated for better use to be made of this fund. For too long we have seen huge surpluses built up with little in the way of ideas, imagination or indeed a mechanism being put forward on how to spend this money. In the years ahead we will all need to adapt our skills and training as the world, and particularly the world of work, goes through rapid changes. Whether it is a looming AI revolution or the transition to an economy that can meet our climate targets, we need to ensure we are doing all we can to invest effectively in education and skills. The NTF has a vital part to play. This is a fund with an accumulated surplus now of more than €2 billion, and it will increase by another €230 million or so in the next year. This is as a result of the incremental increases in the levy from 0.7% to 1% and record levels of employment. In the context of a skills landscape and a further and higher education sector that is crying out for investment, it is simply essential that we make sure we are making full use of the resources and funding available to us. That means making the best use of the NTF.

With that in mind, the Government's plans to spend some of the fund's accumulated surplus across the coming years up to 2030 on funding and, in particular, on capital investment in further and higher education was welcome when it was announced last year. Particularly welcome was the focus on funding apprenticeships, which is an emphasis that has long been called for by the Labour Party. Following on from that announcement, today's Bill makes a sensible change that we in the Labour Party can support. It is something we have long called for. In fact, as far back as 2017, we proposed that the NTF should be used to provide a stable funding source for further and higher level education, which is the engine of our economic growth and near full employment. Allowing for the use of the fund for capital investment within the defined purposes of the 2000 Act will enable the better use of the accumulated surplus of over €2 billion. It will unlock that much-needed capital investment for our third level institutions. This is a sensible step to take but should be cautiously used because clearly the State has the resources elsewhere to fund an ambitious capital programme. Deeper questions about our social safety net need to be addressed.

This is often called an employer levy and like employer's PRSI, it is a form of deferred wages or social spending for the benefit of workers. Employer's PRSI funds your pension, while the NTF is there to fund your education and skills. That is why we would take this opportunity to ask wider questions on the NTF. It is essential that we use the fund in the most effective way possible.

Even after the Government’s plans to spend much of the current accumulated surplus over the next five years, the fund will still have an annual surplus of €230 million this year alone. This is sustainable revenue that can be used to extend the social safety net and improve benefits for workers and employers. We in the Labour Party believe this funding should be allocated imaginatively to fund the third level education that provides the skills and talent that drive our economy. We argued as much in our manifesto ahead of last year’s general election and in our alternative budget earlier this month.

One way we would look to spend the surplus is by unlocking it to invest in lifelong learning. We all recognise the immense value to both our society and our economy that accrues when people are empowered to learn new skills throughout their career and life. Properly resourced opportunities for adult learning help businesses get the skills they need while giving those learners the chance of flexibility in their lives and careers and the confidence and social benefits that come along with learning later in life. Whether we are talking about giving people the digital skills they need for a quickly changing modern economy, or the skills we will need to see through the climate transition, it is essential that we use every tool available to us to support upskilling and reskilling for people right across society.

In our manifesto prior to the general election last year, the Labour Party called for an innovative use of the NTF towards this goal. We argued that some of the near €2 billion surplus in the fund should be unlocked to allow workers who are mid-career to "stop and switch" by pursuing opportunities for upskilling or new career directions. Funding skills vouchers, free part-time degrees and masters' courses for workers out of the NTF would fulfil the funds purpose in the most fundamental way. This use of the fund could be managed by SOLAS and be demand-driven where a worker has a minimum of ten years of continuous social insurance contributions.

The imperative for change here is clear. When in work, currently, upskilling opportunities are most often controlled by the employer. In most cases, it will be the employer who decides what training or educational opportunities their workers can access. Often that will align with the workers' own goals and aspirations but let us be honest, oftentimes it will not. People should be empowered to direct their own learning and by extension their own lives. By using the National Training Fund to support upskilling through skills vouchers, we could give workers the personal freedom they need to choose for themselves and the opportunity to direct their own learning and career towards where they want to go. Workers who have contributed for many years deserve that chance, so we would use NTF funding to make skills vouchers and free part-time third level courses available to them. That is the kind of sensible use of the NTF surplus that we need to see and it builds on the introduction of pay-related jobseeker's benefit. These measures ensure that people can put their skills and talent to the best use possible.

The Labour Party has also called for the NTF to be used to fund safeguards for the future. We have proposed that a permanent wage subsidy scheme could be funded from the NTF and the Social Insurance Fund. A wage subsidy scheme would support workers and employers in the future if and when a downturn or recession strikes. When a company encounters difficulties, employees could be protected from lay-offs by State subsidies, ensuring that SMEs which need time to adapt and overcome those difficulties can retain staff and their essential skills.

We see this model working well elsewhere in Europe, most notably with the German Kurzarbeitscheme. There not only are workers and employers protected from lay-offs, but the scheme guarantees that each worker has an individual training or upskilling plan. Workers, therefore, get the opportunity to build their skills during what would otherwise have been a period of unemployment for them, while employers can improve their businesses productivity and skills base while they otherwise would have been looking at a difficult period of layoffs. An Irish version of the Kurzarbeitscheme would serve as an automatic stabiliser in future recessions. It would not carry an upfront cost today but by putting it in place now, and making it a permanent feature of our employment and social protection safety net, we would be investing in skills and employment safeguards for the future.

Just as the small company administrative rescue process allows an SME to restructure debts, save jobs and avoid liquidation, a short-term wage subsidy scheme would provide a further safety net for unexpected, short-term shocks. By doing so, we could ensure that the National Training Fund is put to the best use when it is needed most down the line.

There is broad agreement that the surplus in the fund needs to be put to use. We simply cannot afford to have such a large sum sitting idle at a time when the need to invest in skills has never been more urgent. I note the concerns that have been raised in some quarters on the Government’s intention to use the fund for current and capital spending for the further and higher education sectors. The fund is, of course, paid for by the 1% employer's PRSI levy and employers are within their rights to ask for assurances that they will see the benefits of the fund but our view would be that this levy amounts to forgone wages that should be invested in workers.

Looking at the skills landscape in the whole, it is important we take a holistic approach and recognise that investment across the whole sector is required. Investing properly in our colleges and universities does not just benefit students and staff at those institutions; it benefits our entire society and economy. The benefits of investment in education and in learning are shared among us all. For that reason, while we are cognisant of the concerns that have been raised regarding the Government’s plans, the Labour Party will not oppose this Bill on that basis.

However, the voices making that case are correct in their calls that we make sure that this fund is spent in the most effective way possible, consistent with its purpose as defined in the 2000 Act. Doing so will require imagination and initiative. We have set out the Labour Party’s proposals for two of the ways in which the fund’s surplus might be utilised, and we hope the Government gives those suggestions the consideration they deserve. In the coming years, we face several major transitions in how we work. It has never been more important to invest properly in skills, education and training. The National Training Fund is already an important pillar of our skills infrastructure in Ireland. By using its surplus in an ambitious, imaginative way, we can ensure that it continues into the future.

Maeve O'Connell (Dublin Rathdown, Fine Gael)
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I welcome the opportunity to debate Second Stage of the National Training Fund (Amendment) Bill. In progressing this Bill through the Oireachtas, it is vitally important that we ensure the National Training Fund's original principles are maintained.

Established in 2000, the National Training Fund has spent more than two decades, as we know, funding training for those in employment and those seeking employment. Identifying and addressing the skills shortage in Ireland's workforce is vital to ensuring we continue to be a competitive nation and able to keep up with our European neighbours.

Last week's announcement of an additional 1,100 healthcare places in budget 2026 showcases that addressing skills gaps is a never-ending process and we must be flexible to respond to the changing market positions. The National Training Fund is an inspiring example of effective social partnership, funded by employers and businesses for the mutual benefit of workers and facilitated by Government. It is vital, however, that there is buy-in from all sides. I know that over the past two decades, employers and employees have developed a very positive view of the National Training Fund, seeing it as an effective mechanism for improving Ireland's workforce. We cannot allow this impression to falter and for businesses to feel like the National Training Fund is yet another tax imposed on them with very little benefit to them.

As the adage goes, "no taxation without representation". That is why, as Vice Chair of the Oireachtas committee on further and higher education, I am looking forward to inviting in each of the relevant businesses or worker and learner representative groups to the committee to have their say and make sure we have buy-in from all sides on the changes in this legislation.

Any changes to the National Training Fund to expand its scope must first include the introduction of guardrails around skills development, which is the purpose of the National Training Fund. We need to ensure the National Training Fund is not that in name only and continues to maintain the intent of the original legislation, which is to raise the skills of those in employment, to provide training for those who wish to acquire the skills for the purpose of taking up employment, and to provide information regarding existing or likely future requirements of the skills economy.

It must continue to do what it says on the tin: that is, it must be a fund for training. Having worked in the higher education sector for decades, I have seen first hand how effective targeted investment in the sector can be. I have seen the further education and apprenticeship sector transformed from being an afterthought to a central pillar of our sector. In a side note, I commend the Minister on securing the largest ever single investment in apprenticeships - €79 million in budget 2026. I know this Government has committed to investing in developing skills. This is further evidenced by the commitment of €54.2 million in funding for Skillnet Ireland.

Skillnet Ireland does incredible work and has added great value to the skills industry. Since its foundation in 1999, it has developed an extensive number of industry partners and networks. It has supported over 24,000 businesses and more than 90,000 workers in industries from agriculture to aviation. The National Training Fund Act provides for the allocation of funding for research to provide information existing in likely future skill requirements of the economy. A major part of this is the National Training Fund (Amendment) Bill before the House. This is to enable the fund surplus to be unlocked for research and innovation in the likely future skills requirements of this economy.

This is an excellent initiative but I would urge the Minister that it should go to support the further research undertaken by Skillnet Ireland to identify the skill shortages in the economy. It has the knowledge, networks and contacts. It already knows where the skills gaps are. It has already done the research to identify the future skills gaps. Let it fill those gaps. Government investment is vital to further developing the skills sector but neither my constituents nor I want to see the Government pay for the same thing twice. That is why any skills research needs to be facilitated through Skillnet Ireland. It has been doing that and doing it well for more than 25 years.

There are also opportunities regarding the human capital initiative which, for the past five years, has been funded through the National Training as a pilot programme. This initiative was a target towards increasing the capacity for a skill-focused programme in higher education, designed to fulfil Ireland's priority skill needs. The pilot period has concluded. We need to know details of any follow-up programme, what the Department findings were following the conclusion of the pilot across the three phases and whether any extensions to the programme will be funded through the NFT. The enterprise centres and other initiatives funded through the human capital initiative have provided a great service in areas where we need more skilled people. It would be a shame to see any close now without a follow-up programme put in place. As deputy chair of the Oireachtas Joint Committee on Further and Higher Education, Research, Innovation and Science, I look forward to getting into the details of the Bill, ensuring the National Training Fund remains fit for purpose and that the original principles of the Act are maintained.

The fund also has potential for further developing the apprenticeships sector, as other has commented. Budget 2026 secured the largest ever investment in apprenticeships, though we must acknowledge that without employers there would be no apprenticeships so we need to make these apprenticeships more appealing to employers. We must make sure employers see that hosting apprenticeships are of benefit to them. Multiple contributors to the Oireachtas joint committee, including the perspectives of employers and apprentices, have addressed the need to reconcile the differences between the traditional craft apprenticeships and the new, industry-led consortium apprenticeships. For example, let us talk about the funding of training allowances paid to apprentices during their off-the-job training periods. Funding for the traditional craft apprenticeships is covered by the NTF. This is not a cost to the employer and is consistent across the craft apprenticeships. However, this is not the case for those industry-led consortium programmes. These employers have to bear the costs of this off-the-job training, which is a strong barrier to employers taking on apprenticeships. This is especially true for the SME employers, which we know are the backbone of this sector. From a business perspective, they are paying for the costs of a worker who is not actually directly working for them. To help businesses, especially in times of rising costs and economic instability, we must find every avenue to ensure the apprenticeship programmes are as accessible for businesses as possible. The employers best know the needs of their sectors. They know exactly how many workers they need and the skills those workers need to have. We need to facilitate as many effective employer-led apprenticeships as possible. One way of doing this would be to enable the NTF to cover the costs of the off-the-job training for these apprenticeships.

Given the purpose of this Bill is to enable the expenditure of a surplus of over €1 billion held in the NTF, I ask the Minister and his Department consider how else it can help facilitate this important and growing subsector of the apprenticeship sector. I understand why these procedures were initially implemented in the new industry-led consortia. That was to get the sector going. However, we are in a stronger place. We have a greater understanding of how these apprenticeships work. We should address the differences between the traditional craft and the industry-led consortia now we have the opportunity to do it with this new legislation.

Along with facilitating employers, in considering this Bill we must look at the possibility of including our many independent institutions. A number of contributors to the Oireachtas joint committee suggested the establishment of a voucher scheme. This would enable the independent institutions to engage with the National Training Fund. This would work through employers applying for a voucher and then, effectively, being able to spend it with whatever institution they choose. One that works for them, as the employer, and for the potential apprentice. This could take into account geographical distances and such options. In the Government's effort to further develop Ireland's educational potential, it would be a mistake to completely ignore the independent and private institutions given that they educate a significant proportion of Ireland's students. If we want to continue to promote our country as a leader in education, we need to do so by including all major players in the sector, not focus solely on our excellent, established national universities, ETBs and other institutions. Over the course of the Bill, I look forward to seeing how the Department and Minister will engage further with these important providers in consideration of these changes to the NTF.

I would like to reference a recent report from the Comptroller and Auditor General. This report highlighted that due to supports such as the employment wage subsidy, which was very welcome by employers and included a reduce PRSI rate, actually resulted in over-allocation from the Social Insurance Fund to the National Training Fund. In effect, this means that the NTF has funds that it simply may not be able to disperse for the original purposes of the fund. This highlights how important it is that we are very careful in how we utilise the NTF. It relies solely on these PRSI levies, and any change to Ireland's economic fortunes can significantly impact the fund. After all, the fund was envisioned for innovation and skills and not for the institutions.

I commend the Minister's commitment to the further and higher education sector in bringing forward this Bill. Through my work as Fine Gael spokesperson for further and higher education, I have heard many positive comments about the Minister's work and the Department from stakeholders throughout the sector, both from my own direct engagement and also through my work on the Oireachtas joint committee. I look forward to working with the Minister and Minister of State, Deputy Harkin, on this important matter.

Jen Cummins (Dublin South Central, Social Democrats)
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I often talk about how education does not finish with the leaving certificate or junior certificate. It goes on and on. For many people it is a fantastic thing that they engage with on a regular basis, well past the need for qualifications or the skills for work. It is because they really love engaging in education. It is fantastic that, in this country, we have so many options open to people.

I am surprised to see there is such an amount available that should have been used for the purposes it was set out for in the first place. However, I welcome that it will go towards capital expenditure because, as we spoke about this morning, if we go around the country there are buildings and centres that have needed upgrading for decades. They have faulty windows, leaky roofs and are desperately in need of a retrofit or two. They also have outdated furniture and outdated materials. When I go to primary schools, I will see the fantastic amount of technology they have such as interactive boards. We should have that in community training, Youthreach and adult education centres, where people learn for their apprenticeships. We should have that level of technology there as well. It would be really welcome to have those there. This should be the time we do this once and manage this fund correctly, so we do not have to do it again because we are going to invest the capital, so we are then able to invest in the learners and those trainers and teachers.

Youthreach is such an effective way of engaging young people. There are two parts to it. There are those young people who come from mainstream, and it may not have been as successful as they would have liked. They then go to Youthreach and do QQI level 3 and 4. There is also Youthreach for level 5 and 6. They are being trained to go into customer service employment in the future and they are learning in an environment that is inclusive, flexible and learner-centred. It is so successful for those young people because of the way they teach there and because of the atmosphere. I am sure anyone here who has been to a Youthreach centre will know how fantastic they are. These centres also have fantastic forward-facing programmes. I was involved in one in Ballymun, which got a 3D printer that was fantastic. Can that be rolled out? At a meeting of the Joint Committee on Further and Higher Education, Research, Innovation and Science the other day, we discussed a course being run in near Dundalk in Louth where they have robotics. When we have training courses there we can entice young people who may not have had a great time in mainstream education into a Youthreach centre to do those courses so they can go on further and rediscover their love of learning.

I also spoke this morning about community training centres. I am sorry if I am repeating myself, but Deputies know I am very passionate about community training centres from my involvement with them. The courses they have are run on a shoestring as are Youthreach centres. They are not able to do all the things they would like to do. They are being asked to do more and more on less and less. They are also in buildings that are not great. They are in centres that might not have been invested in for a long time. They provide courses for young people coming from mainstream, back into education who really have to learn a lot of self-appreciation. They may not have been as happy in school or as welcome in school. They may have had a very difficult time, so when they go to a community training centre, they find the way they learn is okay, that it is okay to learn the way they do and that there is nothing wrong with them because they cannot learn the way the mainstream is or whatever has happened in the mainstream to mean that has broken down and meant they come to community centres.

As it is learner-centred, it means they have basic things they are able to learn and are then able to specialise in. That is the success of teaching and learning in community training centres.

Obviously, people going back to adult education may start with literacy and numeracy because their children have started in school and they do not have the level of education they would like to have, so they go into courses. Some adult education services provide classes in Gaeilge for the parents of children attending a Gaelscoil or naíonra. It is the first step on the rung but services are provided in centres which are not great. This fund will allow those centres to get up to scratch and to where they need to be so that when people come to those centres they feel very proud. They already feel proud to go to them but the building around them should be the best it can be, as is the case in many of our primary and secondary schools.

We will invest in capital, but given the giant surplus we should also consider the employment of some of those involved in the service. As the Minister of State knows, in the summer we met with a group of adult educators who are not happy with how the new contracts have been rolled out. My understanding from them is that several courses cannot be run because there is no funding. The Minister of State has assured me that there is funding but we have been told there is not. We have been told contracts will not be fulfilled because there is no funding for them. There is a challenge with employment.

The Minister of State and I spoke earlier about community training centres. She said it is a matter for the board but those employed by a State-funded organisation, which is an educator, should come under the public service. Independent education centres are one thing but these are centres which are supposed to operate at QQI level and follow certain procedures. We have to be able to treat all of our educators with parity, respect and dignity. It is the responsibility of the Department to ensure that, where possible, those people are brought under the public service remit. Youthreach and CTCs are not treated at the same level under pay scales. Adult educators are not happy with the contracts they are being offered.

In the round, we have an excellent system. I am always saying that. We are very proud of our education system in Ireland and we want to make sure it is better. I am, however, concerned about a surplus of €1.8 billion, a staggering amount of money. Let us provide €150 million for capital investment for further and higher education but let us not be back here again having not fixed contracts for people or made sure the terms and conditions of educators are sorted.

Capital investment is fantastic but we also have to consider how we will ensure curriculum courses are future-proofed. We need to consider what a child starting junior infants now will need into the future. This is a great opportunity to future-proof courses and determine what we need. Leaving certificate reform is not under the remit of the Minister of State but there is an opportunity to examine how we make that process smoother, whether it involves apprenticeships or third level. This could be much more fluid and people would not feel there is a hierarchy in how we provide education in this country.