Brian Lenihan Jnr (Dublin West, Fianna Fail)

It is widely known and perhaps in this House these matters can be adverted to. However, I must confirm in the next breath that the Government has no proposals to change this position. Senator Maurice Hayes also raised the issue. It is of course widely accepted in third level education circles that this is the reality. It is very serious for the future of our higher education institutions. In the international league they are falling behind institutions that are in a position to attract private funding. No institution is in a position to attract private funding when investors are told that it is a free service for everyone. While we may face up to the issue in a decade's time, there is no immediate commitment to address it.

The infrastructure planned under the €900 million capital envelope forms another part of the Government's commitment to this sector, under which campus facilities will be improved. The Minister is anxious to make progress in higher education participation. Since the introduction of free second level education the average national participation at third level education among second level school-leavers has grown from 11% to approximately 54%. The gap between those who do not progress to higher education and those who do is diminishing with each generation. Recent surveys indicate significant improvements in participation rates from those in lower socio-economic groups. This progress has not occurred by chance and has been due to a number of key targeted programmes and interventions. Funding of access measures, including the student support schemes, has increased from €98 million in 1998 to €242 million in 2006. That was always the way to go in this area. Additional funding has been made available under various targeted initiatives by the Higher Education Authority. The rates of grant have increased in that period, with the highest maintenance rate increasing, with the introduction of a special rate of maintenance, from €2,098 in 1998 to €5,355 in 2005.

The institutes of technology were established some decades ago to respond to an economy link need that was not addressed at the time. They have done a first class job in that regard. Since becoming autonomous third level institutions in 1993, the institutes have undergone a number of dramatic changes in terms of the range of courses offered, the increase in staffing of up to 68%, the increase in full-time student numbers which are up 51% and part-time students which are up 45%.

Following on that period of growth, the institutes are now facing new challenges. As part of the approach to modernisation and reform of the sector, the Government has approved the drafting of legislation to transfer responsibility for the day-to-day management of the institutes of technology from the Department of Education and Science to the Higher Education Authority. It has long been an ambition of the institutes to be under the Higher Education Authority rather than the reputedly heavy hand of the Minister and her officials. Legislation is now being prepared to give effect to that and it is intended that that new legislation will facilitate the development of a strategic approach to higher education within a unified policy and budgetary framework. It will also enable a greater devolution to the institutes to take place in regard to academic and management autonomy.

I thank Senators for their contributions to what was a very useful debate. I am sure the Minister will have regard to the contributions of Senators.