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

I thank the Senator for raising this issue. The higher education sector is vital in achieving our long-term ambitions as a nation. After nine years of continuous cuts to the budget for these institutions, I have been pleased to provide for the first increase in investment this year. Beyond that, we have committed to a demographic dividend in the coming three years. On top of this, we have decided to develop, with the Minister for Public Expenditure and Reform, an Exchequer-employer mechanism. We have published a paper for public consultation and would welcome submissions.

Direct funding for individual colleges is not provided through the Department but through the HEA which we assign to deal directly with institutes of technology and the universities.It does not come through the Department. We assign the HEA to deal directly with these institutes of technology and with the universities. They are independent bodies and have their own governing authorities. The HEA is reviewing its funding mechanism.

The Senator is right that there was a recent review of the entire institute of technology sector during which issues such as the difficulties they have in funding were raised. Very specifically the difficulties of IOTs with multiple campuses were highlighted as an issue that the HEA wants to support as part of its ongoing development of funding in the sector. That is a positive backdrop to the discussion we are having.

My Department and the HEA are aware of the financial difficulties being experienced by a number of the IOTs, including Galway-Mayo Institute of Technology. The HEA has been closely monitoring the financial position of all of the IOTs and in particular is working closely with those institutes operating in deficit to ensure appropriate mechanisms are put in place to eliminate the deficit as quickly as possible. In line with the HEA’s policy for dealing with financially vulnerable institutes, GMIT has agreed a three-year financial plan with the HEA to reach a balanced budget by 2017-18 and an external financial expert has been appointed to review the plan.

GMIT has also identified a number of areas to address its financial position including implementation of a retention strategy; review of the offering versus other higher institutes of education to try to increase demand; and a new programme development to bring increased student numbers. The HEA has also stated that plans for the future of Galway-Mayo Institute of Technology must support the sustainable development of provision on all campuses. That is a very important principle.

The HEA and the GMIT governing body have reconfirmed to my Department their commitment to implementing a viable development plan for the Castlebar campus as part of this process. GMIT has appointed an interim head of the campus in Castlebar to lead this process. The GMIT board has also established a sub-committee look at the overall strategy and future plans for the institute.

The Department and the HEA recognise the particular challenges attached to multi-campus provision in GMIT and other institutes of technology. A major review of the funding allocation model of higher education has commenced and the review will look at how the future model can take account of the additional costs associated with these arrangements. My Department and the HEA are committed to such multi-campus provision, including that at Castlebar.

The rest of the response deals with the wider issues of funding this sector. I believe, as the Senator does, that one of the keys to building a strong sustainable competitive advantage in our regions is building around the skill base. I regard the presence of campuses and the development of those campuses as vital to securing that long-term regional capability.