Malcolm Byrne (Fianna Fail)
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One of the big successes in Irish society has been the rapid expansion of higher education in recent decades. It has gone from where we had one in five of those aged between 18 and 28 in 1980 going on to higher education to now having more than three in five, with many others going into apprenticeships and further education and training. It has become much more accessible. Even in financially difficult times during the 2010s we saw the number of places expand from 200,000 to 245,000. In response to the challenges facing students because of Covid, the Government rightly expanded the number of places in higher education. The difficulty, as the Minister of State knows, has been that while we continued to expand the number of places, the commensurate amount of money has not been made available to fund these places.

I welcome the fact the Minister, Deputy Harris, has announced a specific fund of €307 million will be available in the very near future to address some of the core funding issues. However, I am concerned.The Minister has announced that there could be an additional 1,000 places provided in higher education this autumn, yet there is not complete clarity that those places will be properly funded. I welcome the expansion of places in higher education. It is important that we expand the number of places in apprenticeships and in further education and training, in particular in areas where we have skills shortages.

The indications are that the 1,000 places will be in the areas of medicine, healthcare, engineering and climate change. This is particularly welcome for those on medical and healthcare-related courses where, as we know, just over 40% of college courses that required 550 points or more last year used random selection in the allocation of those places. It is a very cruel blow to any student who has achieved those high levels to be excluded from a place. Expanding the number of places is welcome.

However the difficulty is that we have to have a very clear commitment that those places will be funded. If, for instance, as the Minister has said, expanding the number of places on medical courses will involve an additional 120 places being created over the next two years, that is something that is very welcome. Given that the full economic cost to the State of educating a student in medicine over a six-year period is in the order of €100,000 or even more, those 120 places will be an additional cost to the Exchequer of in excess of €12 million. If we are going to continue to expand our higher education system for every single additional place in terms of current expenditure, we need clarity that there are guarantees that the full economic cost will be covered.

In addition to that, there are also major challenges around capital costs. We cannot continue to squeeze more and more students into higher and further education places unless there is significant investment. If we talk to those involved in higher education institutions, they will all talk about the capital challenges they face. The expansion of higher and further education is incredibly welcome, but we have to ensure the model we use is sustainable and we need to give a guarantee, as a Government, that any new places that are created this year will be properly funded.

Martin Heydon (Kildare South, Fine Gael)
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I thank Senator Byrne for raising what is an important issue. I am taking this Commencement matter on behalf of the Minister, Deputy Harris. We are very aware of the demand that exists for places in higher education. Demographic factors mean demand will only increase in the coming years and we must work to ensure there is a place in third level education for everyone who wants one.

Our higher education system has already expanded considerably over the past number of years. As the Senator outlined, full-time graduate enrolments rose by 9% between 2014 and 2020 and are expected to increase by another 15% by the end of the decade. A significant number of additional places were created in 2020 and 2021 in response to the disruption of Covid-19, as the Senator said. This year, officials are working with the HEA and the higher education sector to create additional places in key skills areas, as identified by our skills architecture. This work is at an advanced stage and it is hoped a significant number of additional places can be created. These places will help to address skills need in areas such as healthcare, construction and green skills.

When we are increasing capacity in any area of education, it is vital that we do so in a sustainable way and maintain the high quality for which our education system is known. That is at the heart of the points raised by the Senator. We talked about securing funding for this and being able to provide for places into the future, based not on demographics but on the increased demand we need to meet.

Earlier this month, the Minister, Deputy Harris, published Funding the Future, the Department's ambitious policy document that seeks to address funding issues in the higher education sector, improve the quality of programmes and learning outcomes and reduce the cost of education to students and their families. The Senator referenced the €307 million in funding. That planned additional investment will be made over a number of years to address the core funding challenges. This does not account for future demographic needs or new policy proposals for higher education.

The Minister, Deputy Harris, will shortly convene a high-level higher education reform implementation review group to drive reform in this area. It is also important that we examine how we increase capacity, not only in the higher education sector but also in further education, training and apprenticeships for those most suited to those areas. I can talk a little more about the apprenticeship side in my supplementary reply.

I take on board the points raised by the Senator. They are very valid. We want to create additional places. We have to make sure they are funded sustainably all of the way through the system. The points he outlined, such as the example of medical students, are valid. The Minister, Deputy Harris, is working to ensure that the places that are delivered are sustainably funded and that we have as many as we need and can provide. That is the approach and determination across the Government.

Malcolm Byrne (Fianna Fail)
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I thank the Minister of State for his response. I appreciate that it is not his portfolio, but the commitment is welcome. It is notable that, as he said, the €307 million the Minister has referred to is about addressing current challenges around core funding, rather than dealing with future challenges. That is why it is essential that if the additional places in further and higher education are created, we have to make sure every single one is funded sustainably. We cannot continue to say that we have solved the problems of the past with a sticking plaster and then create more problems.

As the Minister of State knows, the problems are not just demographic. Some reports have suggested that because of the convergence of new technologies, within the next decade 65% of current jobs will either be redundant or significantly change and, as a result, we will all need to upskill and reskill. There is a major role for our further and higher education systems to address that. We have to be radical. The model we use has to be sustainable. I would like the Minister of State to take the message back to the Minister that if he is creating 1,000 additional higher education places, as well as places in further education, that is all very welcome, but they must be funded into the long term.

Martin Heydon (Kildare South, Fine Gael)
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I thank the Senator for his follow-up response. We are committed to supporting a balanced further and higher education system which has a multitude of pathways for learners to follow. The action plan for apprenticeships sets out new ways of structuring funding and promoting apprenticeship, with a target of 10,000 apprenticeship registrations per year by 2025. In 2021, a record 8,607 new apprentices were registered, an almost 40% increase on the figures in 2019, the last normal pre-pandemic year.

We are working to strengthen the further education and training system under the strategy for the sector. It is important that capacity in the higher education sector is not increased in a way that undermines this work. That gets to the heart of the Senator's point about sustainability, namely that whatever increase in places we have is sustainably funded. People do not just enter into first year; they are there for the long haul. The Senator mentioned medicine, which can involve six or seven years of education.

If a significant number of places are provided in the further and higher education system in ways that are not sufficiently targeted, learners may end up migrating away from further education offerings that represent better learning options for them and provide superior career opportunities. This has the potential to impact on retention and success rates. We will continue to work to ensure our education system expands in a sustainable and balanced way that ensures a pathway in education is available to all who want and need it. That is at the heart of what the Senator has spoken about today and what we and the Minister, Deputy Harris, need to do to get this right. In terms of the additional places for which there is demand, we want there to be an array of different education options that are adequately funded so that people can see a pathway through when they choose one.