Brendan Kenneally (Fianna Fail)

I thank Senator MacSharry for sharing his time with me and welcome the Minister to the House. I had wished to speak about the issue of fees in regard to third level funding but there is inadequate time to do so. Some sort of incentive is required whereby third level institutions which are performing well are rewarded. I do not agree with much of the OECD report. However, I agree with a section which states:

The success of the institutes sector needs to be nurtured and celebrated so that its differentiation from the university sector is not seen as conferring lower status but defining it as an equal partner in a dynamic higher education system which covers a diverse range of functions but, if it is to be fully realised, some of the organisational disadvantages of the present structure need to be addressed.

When the Minister visited Waterford Institute of Technology she informed me that she is well-disposed towards changing the way in which funding is allocated because institutes of technology are suffering. One of the recommendations is that the differentiation of mission between the university and the institute of technology sectors is preserved and that, for the foreseeable future, there will be no further institutional transfers into the university sector. As a representative of Waterford and the south east, I cannot accept that view. We have been making the case long and hard. There are deficiencies in the area which can only be addressed through the provision of a full university.

In making the case for my own region, I am using some of the data from a recently-published IBEC south-east document entitled Time for Action, which is a strategy document on the infrastructural needs in the south east. It is generally recognised that the south-east region is underperforming in terms of the economy, enterprise and employment. However, the potential for growth in the region should not be underestimated. With a young population, the south east already has one fundamental element in place. The challenge is to put in place the necessary infrastructure without delay.

The south-east region has much to offer but it now needs the essential infrastructure to enable it to capitalise on this potential in terms of economic growth and employment generation. One of the priority projects for implementation is a university for the south east. To meet the Government and EU-stated policy objective of creating a knowledge economy, new regional higher education networks which generate and sustain new ideas, people and business are paramount. Education has long been accepted as a critical basis for economic growth and regional development. OECD figures suggest that each additional year of education raises output by 6%. Regions with strong autonomous learning institutions economically out-perform regions without such institutions. However, the south east has a clear deficiency of third level infrastructure. The population estimate for the western part of the country for 2004 was 394,300 people. That part of the country has a university. The estimated population of the mid-west is 345,400. It, too, has a university. The south-east region, however, with an estimated population of 440,400, which is bigger than the population in either of the two regions I mentioned, does not have a university and, if this report were to be taken on board, it will not get one in the foreseeable future. I cannot accept that.

The south east also fares badly in terms of participation levels in third level education. The proportion of the population over 15 years of age with a third level degree or higher is 6.53%, while 8.17% have a third level non-degree education. The OECD report also shows the relatively low level of expenditure on research and development in this country. The percentage of national research and development grants going to the south east is 0.69%. That puts the region further behind. This must be addressed.

I cannot accept the recommendation regarding further education needs in the south east. Our campaign for a university for the region will continue.