Malcolm Byrne (Fianna Fail)
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Cuirim fáilte roimh mo chara, an tAire Stáit, an Teachta Rabbitte. Gabhaim buíochas léi as an ábhar seo a ghlacadh ar son an Aire Oideachais. I endorse the remarks of my colleague, Senator Dooley, about the importance of designating family carers as key workers. I know that the Minister of State is very passionate about doing this as well.

I am raising the issue of higher education funding. This country's economic success and many of its social developments have been built on the fact that we have a highly educated citizenry and workforce. If we look at some of the statistics, we will see that other countries are almost jealous of us because a majority of people in their 20s and 30s in this country are graduates. This year, approximately 50,000 new entrants will go into our higher education institutions and approximately 70,000 graduates at different levels will come out of them. We have nearly 200,000 people studying at undergraduate level in this country, as well as 45,000 postgraduate students. These are statistics to be celebrated.The problem has been chronic underfunding. As we continue to expand the system and provide more opportunities, and the technological changes we will face over the next decade mean there will be greater demands on us to upskill and reskill, we need a higher education system that is fit for purpose and is adequately funded. No one should be in any doubt about the challenge of some of those costs. Part of the problem has been that despite the continued dramatic increase in numbers over the last decade, the level of public funding until recently has continued to be cut. This year, we are finally beginning to see additional investment in the area. I asked about the full economic cost and how much it costs in every case, so that we get an idea of the scale. I understand the estimate is around €8,000 to €10,000. We need to provide that sum every year to ensure we can provide more of the quality graduates for which this country is well known and we need to have the capital and research investment, particularly in the emerging technological university sector.

Five years ago this month the Cassells report was published. In many ways, it did not tell us anything that we did not already know. The problem has been that the can of university funding has continued to be kicked down the road since then. It was sent to a joint committee, views were sought from Europe and there were various reports, none of which told us anything different. Cassells outlined the three possible models to funding our higher education system. I favour a publicly funded system for the most part, that we, as a State, should invest in our future because education is what matters. A potentially big achievement of this Government, and it resulted from Fianna Fáil input into the programme for Government, is the creation of the Department of Further and Higher Education, Research, Innovation and Science. That is not just an administrative Department; it has to drive Ireland's economic and social development and our recovery coming out of this Covid period but that can only be done if we have a properly funded system.

The Minister, Deputy Harris, said the time for reports is over. We need to make a decision now. We need to ensure we have a proper, publicly funded higher education system and that it is fit for purpose to be able to meet the technological changes we are going to face over the next decade.

Anne Rabbitte (Galway East, Fianna Fail)
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I am taking this matter on behalf of the Minister of State, Deputy Collins. It is wonderful that we have this Department. It puts a strong emphasis on higher education as a stand-alone where a Minister and Minister of State work with a team in the Department.

The full cost of a higher education place can vary depending on a variety factors, including the type of course and the specific arrangements for course delivery. At present, there is some differentiation in the costing approach within the sector. The university sector collects full economic costing data. The institute of technology and technical university sector collects unit cost data which involves a different methodology to full economic costing, FEC. Details provided by the Higher Education Authority, HEA, give a sample of both the costs in various disciplines. For instance, laboratory based undergraduate disciplines, such as science or engineering, will have a greater cost at around €10,000 to €11,000 per student than non-laboratory disciplines such as arts or business courses, which cost in the region of €7,000 per student. Taking all disciplines into account the average undergraduate cost for a student would currently be in the region of €9,000 or €10,000 per student per year, as the Senator said.

The latest university FEC data for 2016-2017 indicates that the average cost for a laboratory-based postgraduate taught student is circa €15,000 per student per year while the average cost for a non-laboratory postgraduate taught student is in the region of €12,000 per student per year. An average cost for a laboratory-based postgraduate research student is approximately €18,000 per student per year. An average cost for a non-laboratory postgraduate research student is circa €21,000 per student per year.

The Department is very much aware of the need to understand the costs of higher education course provision. In 2016, the HEA appointed an independent expert panel to review the current allocation model for funding higher education and to make recommendations on the most appropriate funding model for the future.The completed review recommends reforms to the Higher Education Authority funding distribution model. A key recommendation of the review of the allocation model, RFAM, report is the development of a costing model to be applied consistently across higher education institutes. At present, there is some differentiation in the costing approach as between universities, technological universities and institutes of technology. Deloitte was appointed by the HEA in 2019 to undertake a scoping exercise on an appropriate model. In 2021 the HEA, working with the Departments of Education and Public Expenditure and Reform, the Irish Universities Association, IUA, and the Technological Higher Education Association, THEA, will commence development of a conceptual framework on the journey towards adoption of a universal costing system applying across the entire higher education sector.

Regarding the implementation of the Cassells report, the expert group report of 2016, 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 current approach to funding was unsustainable and that substantial increases in investment in higher education must be made to ensure that the sector can remain viable and provide the capacity to meet the major increase in student demand projected up to 2030. The expert group report has opened up an important debate in Ireland on how our third level education system should be funded.

The report made three major proposals, namely, a predominantly State-funded system; increased State funding with continuing student fees; and increased State funding with deferred payment of fees through income contingent loans. 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. The future development of Ireland as an inclusive society and a knowledge economy, against the backdrop of the rapid technological changes referenced, will be critically dependent on the quality of our graduates.

Malcolm Byrne (Fianna Fail)
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I thank the Minister of State. We all know how important higher education is. I accept that the Government has made a good start with the new Department and increased public funding. However, while it talks about the scale of the ambition, we have to be able to put the resources behind that. I plead with the Minister of State to take back to the Minister of State, Deputy Niall Collins, and the Minister, Deputy Harris, that we finally have to address this funding question. We could commission many more reports and they would all tell us the exact same thing. The sector is responding as effectively as it can. There is little more that can be trimmed back in the sector. If we are going to continue to provide the opportunities, expand and meet the technological challenges we are facing, we have to address that funding question. The Cassells report cannot be left to be kicked down the road any further.

Anne Rabbitte (Galway East, Fianna Fail)
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The Department is working closely with the European Commission and the independently appointed consultants on this matter. The completion of this work will allow for an informed debate on the appropriate policy approach to future planning and funding of higher and further education provision, which is fundamental to Ireland's economic sustainability. The universal costing system and the work being done on it will lay the foundations for how to fund the sector fairly and equitably across universities and technological institutes. To be fair to the Minister and the Minister of State, that is what the Department is focusing on at the moment, because if we do not invest, it will not work at all. It is a broken system.