Mary White (Fianna Fail)
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I wish to share time with Senator Kenneally.

I welcome the Minister of State at the Department of Education and Science, Deputy Haughey, to the House. Waterford Institute of Technology has been in receipt of major capital investment and its main campus can now support more than 6,000 students. For this reason, as Dr. Edward Walsh, president emeritus of the University of Limerick, stated in January 2005, "The challenge for the State in establishing a university in Waterford should not be significant, either in financial or organisational terms."

We hear daily about the knowledge economy and the importance of producing more graduates and developing strong research skills. The industrial base in the south east relies on traditional manufacturing and agriculture. Upgrading the designation of Waterford Institute of Technology to university status would attract new, high-tech skills to the south east region.

Brendan Kenneally (Fianna Fail)
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I thank Senator White for sharing time.

The upgrading of Waterford Institute of Technology's designation to that of university is an important issue for Waterford and the entire south east, which is being fought at regional rather than county level. One of the weaknesses of the region in the past was its failure at times to pull together. While Waterford has the largest population in the south east, counties Kilkenny, Wexford and Carlow also have significant regional towns. Clonmel and Carlow, for example, are experiencing rapid development. Traditional rivalries have been set aside and the entire region and public representatives from across the political divide have united in support of Waterford Institute of Technology's case.

Prior to becoming mayor of Waterford and joining the board of governors of University College Cork for a year, I believed one could build a university on a green field site. I quickly learned from educators and the eminent members of the board that universities are built on reputation rather than bricks and mortar. Waterford Institute of Technology, as any educator in Ireland will testify, has enjoyed an excellent reputation for many years.

Fergal Browne (Fine Gael)
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The same can be said of Carlow Institute of Technology.

Brendan Kenneally (Fianna Fail)
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I do not dispute that, but Waterford Institute of Technology offers a much broader range of degree courses than any other institute of technology. Carlow has its place.

Fergal Browne (Fine Gael)
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Where should the university be located?

Brendan Kenneally (Fianna Fail)
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Of the five cities in the State, Dublin has three universities, Cork, Galway and Limerick each has one, while Waterford does not have a university. The city and the south east region suffer as a result. This issue must be addressed.

Today, the Urban Forum criticised Dublin's urban sprawl and the manner in which the city has developed. It called for a regional balance and proposed developing Galway, Cork, Limerick and Waterford. Leinster now accounts for 54% of the population, most of whom live within commuting distance of Dublin. This is not good for Dublin or the economy and must change.

Some in the university sector do not want the status of Waterford Institute of Technology to change to that of university because they believe such a move would create greater competition for funding. While Senator White is correct that the institute of technology has done well financially in recent years, specifically in terms of capital projects, it would have access to a much greater range of funds in the university sector.

I am pleased the Government has appointed an eminent person to examine the strong case the institute made almost 12 months ago. I hope a report will issue soon. It is vital to the economy of the south east that the region should have a university. As predicted, the manufacturing sector is struggling as Ireland develops into a high skill economy. If the current third level deficit is not addressed, the south east will continue to suffer.

The Minister for Education and Science, Deputy Hanafin, is well aware of the case for upgrading the status of Waterford Institute of Technology because the case has been made so often in the past. She will hear much more in future as we continue to fight our cause. I hope the demand to designate Waterford Institute of Technology as a university will be granted soon.

Seán Haughey (Dublin North Central, Fianna Fail)
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I thank Senators White and Kenneally for raising this matter on the Adjournment. As they will be aware, the Minister for Education and Science has commissioned a preliminary independent examination of the submission made by the governing body of Waterford Institute of Technology seeking university status.

In February 2006 the governing body of Waterford Institute of Technology wrote to the Department of Education and Science requesting a review of its status under section 9 of the Universities Act 1997. The provisions of section 9 state that the Government may appoint a body, which will include international experts, to advise the Higher Education Authority on whether, having regard to the objects and functions of a university, an educational institution should be established as a university. On the advice of the body and the recommendation of the authority, the Government may, by order, provide that the institution shall be a university for the purposes of this Act.

Aside from the detailed statutory review process that is required in progressing an application, there are also significant wider issues that need to be considered in advance of any statutory review. For example, there have been wider policy developments in the overall higher education sector that are important in this context. In particular, it is important that account is taken of the significant recent changes in the overall legislative framework governing Irish higher education, with the passage of the Institutes of Technology Act 2006, as well as wider Government policy on foot of the review of Irish higher education carried out by the OECD in 2004, the broad thrust of which was endorsed by the Government.

A central purpose of the OECD review was to support Ireland's strategic ambition of placing our higher education system at the front rank of the OECD in the context of the wider national objective of developing as a world-leading knowledge economy and society. A key recommendation in the OECD's report to the Government was that Ireland should retain the differentiation in mission of the university and institute of technology sectors, which it identified as a key strength of our system, and that there should be no institutional transfers into the university system for the foreseeable future. The report also recommended that universities and institutes of technology should be brought together under the remit of a single authority for the purpose of achieving a unified higher education strategy. It further recommended that the extent of external regulation of the institutes of technology should be lightened, giving them greater managerial freedom in responding to the opportunities and challenges of supporting regional and national social and economic development.

The Institutes of Technology Act 2006 addresses significant elements of these recommendations and marks a major milestone for the sector and for the development of higher education in Ireland. The Act provides for greater autonomy for the institutes to fulfil their missions. The institutes are now within the remit of the Higher Education Authority, which will support an integrated and cohesive strategic approach to the development of higher education in line with national priorities. The Act means that, in practice, the HEA and the institutes of technology will engage and relate in a way that is similar to the way the HEA and the universities engage.

There are a number of areas where the operation of the institutes has changed as a consequence of the role of the HEA. On budgets and finances, the HEA determines an institute's budget in line with the funding relationship that exists between the HEA and the universities. The HEA assumes the role in establishing formal arrangements to permit institutes to borrow or to underwrite borrowings in a manner similar to that prevailing in the university sector, allowing a greater level of institutional flexibility and responsiveness. The Department's role concerning the approval of research, consultancy or development work or the acquisition of land has devolved to the HEA. Similarly, specific approval from the Department to run individual courses or programmes is no longer required.

The new arrangements provide for a more autonomous and strategic relationship with Government, through the HEA, reflecting the dynamic and competitive nature of the environment in which the institutes are now operating. The new legislation will transform the Irish higher education landscape and needs to inform our consideration of the case being made for university status for Waterford. In order to achieve the best outcome, a preliminary independent examination of the governing body's submission has been commissioned from Dr. Jim Port, a UK-based independent consultant on higher education issues. In requesting the independent advice, Dr. Port has been asked to conduct a thorough assessment of the submission made by the governing body of Waterford Institute of Technology having regard to national strategy for the development of Irish higher education, implications for regional development in the south east in the context of the national spatial strategy and any likely implications for the overall structure of higher education in Ireland.

While no specific deadline has been set for the completion of this report, it is expected that Dr. Port's advice will be received in the first half of 2007. Once completed, the independent expert report will be used to guide the Government's decision on whether a formal statutory review process should be initiated to consider the application, as required under the Universities Act.

The Minister for Education and Science is aware of the strong support that has been built in the south east region around the application from Waterford IT for university status. However, the wider policy developments that I have outlined are also fundamental to her consideration of the appropriate steps concerning the application.

I thank the Senators again for having raised this matter.

Brendan Kenneally (Fianna Fail)
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I wish to ask a brief question. When is it expected that the Government will receive that report and any recommendations that Dr. Port may make?

Seán Haughey (Dublin North Central, Fianna Fail)
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While no specific deadline has been set for the completion of this report, it is expected that his advice will be received in the first half of 2007.

Mary White (Fianna Fail)
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I wish to put on record the fact that the Minister of State's father appointed me to the Higher Education Authority in the 1990s. I appreciated the appointment very much and I was honoured to serve in that capacity.