Mary Mitchell O'Connor (Dún Laoghaire, Fine Gael) | Oireachtas source

The Cassells report put forward three funding options for consideration. One is a predominantly State-funded system. This involves a significantly increased core grant to institutions and the abolition of the student contribution. Higher education would be free at the point of entry for all first-time EU students and for part-time learners with the possibility of extending free tuition to postgraduate students. The second option is increased State funding with continuing student fees. This would involve a considerable increase in State funding with retention of the current up-front student contribution and continuing fees for postgraduate students. The third option is increased State funding with deferred payment of fees through income-contingent loans. This option allows for the abolition of the student contribution to be replaced by a system of income-contingent loans provided by the State. Increased State funding will still be required. As committed to in the programme for Government, the report has been referred to the Joint Committee on Education and Skills as part of the process for formulating a plan for the future of the sector. The recommendation from the joint committee will inform future decisions in this policy area.

While the Cassells report deals with the medium and long-term funding needs of higher education, the Government has been cognisant of the immediate funding challenges in the sector. It was in this context in budget 2017 that the Minister, Deputy Richard Bruton, secured additional funding for the sector. This involved an additional €36.5 million which was made available to higher education for 2017 and €160 million of additional funding over three years. The additional funding of €36.5 million included €8.5 million for various access measures targeted at the most disadvantaged postgraduate students, lone parents, a new 1916 bursary scheme, and targeted funding to incentivise higher education institutions to attract more students from disadvantaged communities. The Government's commitment to continuing investment in higher education was further evidenced in the recent budget 2018 in which the higher education sector will benefit from a total investment package of €60 million in additional funding in 2018. This funding is on top of the €36.5 million that was secured for 2017 and which is being provided again in 2018. The €60 million funding package includes €4 million for the continued roll-out of the postgraduate measure and the 1916 bursary scheme, announced in budget 2017. In total, the Government will invest €100 million more in higher and further education in 2018 than in 2016.

The number of students seeking a place in higher education is increasing and is scheduled to continue to rise up to 2030 which poses a significant financial challenge. A need is clearly outlined in the Cassells report to appropriately resource the State's higher education institutions to cater for the projected increase in student numbers and to provide a quality learning experience for those students. The additional funding provided over 2017 and 2018 will allow for the continued provision for higher education programmes and services for the existing student cohort as well as providing an additional 2,100 student places in 2018. With limited public resources available to the Department overall and the number of competing priorities across the sector, to extend access to the student grant scheme and student assistance fund, and by extension the free fees funding and the fund for disabilities, to other institutions or cohorts of students that are not currently covered under these initiatives without significant additional investment would involve reducing the level of funding for existing institutions and students.