Seanad debates

Tuesday, 13 December 2016

Commencement Matters

Institutes of Technology

2:30 pm

Photo of Richard BrutonRichard Bruton (Dublin Bay North, Fine Gael) | Oireachtas source

I will deal with the general issue first. I believe regional institutions will be crucial to our long-term competitiveness and ability to ensure the regions can compete and build a genuine sustainable competitive advantage. Everyone recognises that one of the key priorities is not only to build on the 200,000 jobs we have delivered with another 200,000 in the coming period but also to ensure a regional spread. The institutes of education will be crucial in that regard.

We recognise that the entire higher education sector has been under sustained funding pressure. These institutes do not have the same funding model applied elsewhere, with pupil-teacher ratios at primary and second level protecting investment. They have been managing exceptionally well against a background of diminishing resources and rising student numbers.

We are reviewing higher education funding. As the Senator will be aware, this year I received a commitment from the Government to invest €36 million. I have also received a commitment that for the next three years there will be an escalator in order that with, rising student enrolments, there will be an increased commitment worth €160 million. I have also agreed to work with the Minister for Public Expenditure and Reform, Deputy Paschal Donohoe, to develop an Exchequer employer investment mechanism. Beyond this, the Oireachtas Joint Committee on Education and Skills is examining the report by Mr. Peter Cassells on long-term funding sources.

A recent HEA report indicated the financial pressure that was emerging in institutes of technology. The HEA met GMIT as one of the bodies experiencing financial difficulties. The HEA has a policy framework in place for engaging with vulnerable institutes of technology which has been triggered in this case. It requires institutes of technology to submit a three-year plan to return them to a balanced budget. If an institute is unable to demonstrate how a return to a balanced budget can be achieved within this timeframe or if actual performance deviates significantly from the plan, the HEA will seek the appointment of an independent financial expert to work with the governing body and the executive management team to agree a revised plan and programme of remedial action.

The first of what is expected to be a series of meetings was held last week between the GMIT executive and the HEA to discuss a number of issues related to the financial position of the institute, including those specific to the Castlebar campus. A financial management plan has been submitted to the governing authority of GMIT and it is expected this plan will be further discussed at the next meeting in January. In the meantime the HEA is continuing to work with GMIT management to address the issues at the institute.

The HEA has reiterated its commitment to multi-campus provision, as supported by the national strategy for higher education. I share that commitment. The HEA has also stated plans for the future of GMIT must support the sustainable development of all campuses, including the Castlebar campus. The HEA states it is committed to examining the issue of the funding of regional campuses as part of its review of the funding model which is under way.

I am not aware of the evidence supporting the case the Senator made that there has been sectarian language from the HEA. If he wants to bring it to my attention, I will certainly pursue the matter. With allegations of the poaching of students, etc., it appears that feelings are running high.If we are to develop a successful model to ensure the long-term path for GMIT, including Castlebar, there are issues that need to be overcome. I am not going to establish some special review body in respect of something of this nature.

Clearly, if issues are brought to my attention, I will ensure that the HEA investigates them. Having said that, the HEA is now developing a relationship with GMIT in the context of the financial difficulties and that is the best route through which these issues can surface and be addressed. We are determined to get a strong institute of technology network for the long term. It is our view that we should see stronger integration of such institutions within a technological university concept. As such, it is our desire to see the merger of various institutions while preserving the multiple campus locations which are key to regional diversity.

If the Senator wishes to bring forward concerns that need to be addressed in this review, I would be happy to do that. If there is evidence supporting the various matters raised in the e-mails he read from, we will happily examine that. However, I am not going to set up some sort of star chamber review of activity. We need to develop a governance model that can ensure the viability of this institution with all of its campuses. That is where our attention will be devoted.

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