Ruairi Quinn (Dublin South East, Labour) | Oireachtas source

I thank the Senator for raising this important matter.

The Senator may recall that the national strategy for higher education to 2030, a 20-year national strategy for the development and delivery of higher education, was launched in January 2011. The strategy recommends a number of system changes that are aimed at supporting the objectives of the report, including a sustainable system of funding for third level education to allow for further growth and development with public funding more aligned to national priorities and needs. Arising from the strategy, the Higher Education Authority completed an initial study late last year on the sustainability of the current funding system for higher education. This HEA report outlines the scale of recent reductions in funding, the growth in student numbers and provides some evidence on the possible impacts of these developments on quality of provision.

Enrolments in higher education continue to increase significantly, with more than 160,000 full-time students, both undergraduate and postgraduate, enrolled in higher education institutions in 2010. Projections of future enrolments show that by 2018 this figure will rise to more than 218,000 and by 2030 to more than 280,000 students. In the short term full-time enrolment is projected to increase by more than 18%, 30,000, by 2014 over 2010 numbers.

The report makes it clear that immediate work is required to prepare for a longer term approach to a system that can be maintained through a sustainable funding base which will be able to address the continual expansion of the sector while protecting quality of education. The HEA has emphasised that the report is preliminary only and that substantial additional work now needs to be undertaken before comprehensive proposals can be developed as to how we can sustainably fund higher education into the future. The HEA is continuing its work in this area and further advice is expected later this year.

With regard to the level of maintenance grants for students, the Senator will be aware that, under the terms of the student grants scheme, grant assistance is awarded to students who meet the prescribed conditions of funding including those which relate to nationality, residency, previous academic attainment and means. The eligibility criteria for student grants is reviewed annually and set out in the student grants scheme and the student support regulations each year.

The reality of our current economic situation presents significant challenges that have to be reconciled with limitations on public resources. This is a stark reality which, unfortunately, means that changes to any public service provision, including the student grants, cannot be ruled out. Any decision on changes to the student grant scheme, including changes to eligibility criteria, will be considered in the context of budget 2013. I empathise with students and I am very conscious of the part played by the grants scheme in supporting families who are putting their children through further and higher education. However, the state of the public finances is such that tough decisions have to be made to control public expenditure and to ensure sustainability in the long run. For this reason it is the responsibility of the Government to take into consideration all areas of public service provision when formulating budget 2013. I will take the concerns of students into consideration during the budgetary process in this regard. I will endeavour to protect, to the greatest extent possible, the most disadvantaged students in further and higher education.