Maurice Cummins (Fine Gael)

There has been an increase of approximately 74% in registration fees which probably compensates. In 2000, the EU leaders set themselves a goal that by 2010 the EU would be the most competitive and dynamic knowledge-based economy in the world, capable of sustainable economic growth with more and better jobs and greater social cohesion. They also wished to redress the position where EU universities have less financial resources than their equivalents in major competitor countries and also to invest 3% of GDP on research by 2010. That was the Lisbon Agenda. However, given the considerable funding difficulties that Irish third level education faces, it is difficult to see how these objectives can be met, especially within the challenging timescale of the Lisbon Agenda.

Although the Government frequently repeats the mantra that Ireland must become a high-tech economy with special emphasis on research and development, comparatively we lag way behind other countries with which we are in direct competition. The following statistics illustrate the point. Ireland is ranked 16th out of 28 countries in terms of spend on third level relative per capita GNP; 17th out of the 28 countries in terms of expenditure on educational institutions per student; and 10th in terms of cumulative expenditure per student over the average period of third level studies. Expenditure per third level student in Ireland is significantly lower than comparable expenditure in top ranked OECD countries. For example, it represents 54% of the spend of the US, 60% of the spend of Switzerland and 73% of the spend of Norway. We spend 1.5% of GDP on third level education compared with 2.7% for the US and 2.6% for Canada and Luxembourg, the top ranking countries. We spend only 0.3% of GDP from private sources on higher education compared with 1.9% in Luxembourg, 1.8% in the USA and 1% in Canada. Ireland's universities have a higher student-teacher ratio than universities elsewhere — we come 16th out of 20. These are damning statistics on third level education in Ireland. It is timely that the OECD should carry out this review and we look forward to its results.

Our universities and institutes of technology have played a major role in Ireland's economic achievements and the broader social development of the country. This role was accelerated in the 1990s when the third level sector was frequently spoken of as being the guardian of Ireland's future economic growth and security. This is an onerous responsibility but the universities and institutes should not be starved of funding as they are at present, as outlined by Senator Quinn and others.

Ireland has suffered considerable funding cuts in recent years which go to the heart of this sector. For instance, the Farrell Grant Sparks report on future funding of the Irish university sector shows that funding to universities fell by €1,240 per student in real terms between 1995 and 2001. Moreover, the failure of the Government to provide any increase in funding for universities in 2004 is tantamount to another 10% cut in funding levels, equivalent to €800 per student. Funding issues, therefore, are of critical importance to the future of third level education and ways of increasing funding must be considered.

Trends in the third level sector point to the increased importance of promoting enterprise and fostering research in our universities and institutes of technology. We need to enable the sector to respond quickly and innovatively to change and allow it to build relationships with business and enterprise, where such relationships will benefit both parties. In short, we must ensure the third level sector is given the tools it needs to cope with the demanding responsibilities placed on its shoulders.

We must not lose sight of the fact that education is a process not a commodity. It benefits the individual and society as a whole in all sorts of ways that are not necessarily quantifiable in terms of our national balance sheet. There will always be a need for those with broad and well rounded qualifications as well as those with specific competences. I commend the motion, notwithstanding my reservations, and I look forward to the OECD report.