Niall Collins (Limerick County, Fianna Fail) | Oireachtas source

I thank Senator Byrne for raising this important matter.

The expert group report of 2016, entitled Investing in National Ambition: A Strategy for Funding Higher Education, confirmed that higher education makes a hugely positive contribution to the development of individuals, employers, society and the State. The report concluded that the approach to funding at the time was unsustainable and that substantial increases in investment in higher education must be made to ensure the sector can remain viable and provide the capacity to meet the major increase in student demand projected up to 2030.

In advance of and since the publication of the 2016 report, my Department has been working hard to deliver a significant programme of reinvestment in higher education. It is important to acknowledge that, since 2015, a very significant programme of reinvestment in higher education has been implemented. Over that period, current public expenditure allocated to the higher education sector has increased by in excess of half a billion euro or almost 40%.

Funding and policy developments taken in recent budgets have taken significant steps to address the funding needs of the sector. Most notably and in line with the recommendation of the Cassells report, a new stream of employer funding was introduced upon a review of the National Training Fund. This level of investment responded to demographic pressures and underpinned a range of initiatives in the higher education sector, including a substantial investment in the evolution of technological universities and significant skills-enhancing opportunities for individuals, sectors and regions.

In 2021, excluding additional Covid supports, total planned current expenditure funding for the higher education sector, exclusive of research provision, is in the order of €1.98 billion.This significant allocation of public resources is a clear demonstration of the Government's commitment to meet the funding needs of the higher education sector to realise more fully its potential in contributing to economic and societal priorities which are central to this country's long-term sustainability.

Regarding ongoing work to implement the recommendations of the Cassells report, the development of a sustainable funding model for higher education is essential in light of the centrality of higher education to our progress as a country. In this regard, my Department's statement of strategy, which we published on 8 March last, contains a commitment to put in place a sustainable funding model for higher education.

In that context, I am very encouraged by the recent completion of a comprehensive economic evaluation of the funding options presented in the report of the expert group on future funding for higher education as supported under the European Commission Directorate General for Structural Reform Support, DG REFORM, programme. The key aim of this review is to investigate methods of increasing the sustainability of higher and further education provision in Ireland, including an examination of the funding options. My Department has commenced its examination of the report's analysis, findings, conclusions and recommendations to develop proposals to bring to the Government to seek its support for a sustainable future funding model and transformed further education and training, FET, and higher education, HE, sector as contained in the statement of strategy. This will be brought to the Government for consideration in advance of its publication.