Martin Conway (Fine Gael)
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I welcome the Minister of State, Deputy Thomas Byrne, to the House.

Malcolm Byrne (Fianna Fail)
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Gabhaim buíochas leis an gCathaoirleach Gníomhach and I thank the Minister of State for taking this Commencement matter on behalf of the Minister for further and higher education. The Minister of State is aware that after a long process to determine how higher education funding should be carried out, the Government committed to addressing that deficit through the publication of a document called Funding the Future. That deficit was identified to the sum of €307 million. At the time when this document was published, in June 2022, the then Minister for Education stated in the foreword:

Today, we confirm our commitment to addressing legacy issues in higher education and detail our ambitious plans for investment and reform.

Crucially, we also set out our response to the increasing cost of third level education. Cost cannot and should not be a barrier to accessing education.

Clearly within that document, a sum of €307 million was identified. That was agreed between the Department of Further and Higher Education, Research, Innovation and Science and the then Department of Public Expenditure and Reform. While that €307 million was to address core funding, that amount identified two years ago did not take into account any potential increase because of a rise in student numbers. It did not take into account pension costs and it did not take into account any sums of money made available under pay agreements. The €307 million was a base and there obviously were additional costs. I do appreciate that, as we continue to expand the numbers in higher education, the Government is committed to looking at meeting the full economic cost for all additional places. However, as the Minister of State will be aware, one of the difficulties is that under national pay agreements that have been honoured by our universities and the higher education system, the €100 million that has been provided over the last two budgets in core funding essentially has been gobbled up by the €90 million plus that has had to be set aside for the agreed pay awards.

It is right that the universities honour the pay agreements that are agreed by the Government with the wider public service but it means that we have not made any progress on that €307 million core funding issue that was identified two years ago. Once again, we are not taking inflation into account. The Minister of State will be aware of the fact that the public has seen significant cost-of-living increases and that applies as much to the higher education sector as to any other. The Government has rightly laid great emphasis on - and the Minister of State is aware that our party, in setting up this Department of Further and Higher Education, Research, Innovation and Science made clear the importance of - further and higher education to our society and the economy. There is a problem of rhetoric not being matched by the reality. Addressing the core funding has been identified as a key priority for this budget by all of the stakeholders including the Irish Universities Association, the Union of Students in Ireland and all those involved in higher education.My real concern, and I hope the Minister of State, Deputy Byrne, will give us some answers today, is that Funding the Future is not being forgotten about as the baseline we set out as a Government to address this crisis.

Thomas Byrne (Meath East, Fianna Fail)
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The Senator raises a very important issue. I am happy to provide an update to him. The Funding the Future Framework, published in May 2022, outlines the Government's vision for how higher education will be funded and how this will support students, employers and wider society. At the core of this approach is the maintenance of a dual focus on increasing recurrent funding for our third level institutions to enable enhanced quality of provision while also addressing the costs of education for students and their families.

Budget 2024 secured an additional €65.2 million in core funding under Funding the Future, which combined with the €40.5 million secured in budget 2023, brings the total additional core funding provided under Funding the Future to €105.7 million. This funding will lead to increased staffing levels and enhanced support services for students. It will also expand the capabilities of our higher education institutions to deliver on priority skills needs and lead to the further development of tertiary programmes.

The provision of higher education funding on an annual basis is part of overall expenditure management and budgetary policy for the Government. It is of course imperative that funding continues to be made available to the Department to support these plans to progress reforms, to implement a sustainable funding model, to improve pathways from further education to higher education, and to address cost as a barrier. The additional €105.7 million provided over the last two budgets in response to Funding the Future, represents the Government’s policy intention to improve the standing of our higher education system internationally and to progressively bring our funding and staffing levels to where they need to be. It is aligned with the intent of Funding the Future that over a number of years further additional core funding will be prioritised through the Estimates process, while taking account of the Government’s budgetary and fiscal stance.

Additional funding has also separately been provided in recent budgets to meet other demands in the sector including demographic pressures and additional pay costs arising from public sector pay agreements. The level of increase, particularly in light of other demands on Exchequer funding, demonstrates the Government's commitment to the sector to enable it to fully realise its potential.

Malcolm Byrne (Fianna Fail)
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I appreciate that the Minister of State is only giving us the answer that is provided by the Department but the reality is that the additional pay costs that resulted from public sector pay agreements are not being matched by the funding being made available. The Minister of State mentioned that in the last two budgets there has, quite rightly, been an additional €105.7 million provided in core funding but the core pay costs have increased in our universities and higher education by more than €90 million so really we have not seen those costs being covered. The figure of €307 million was a shortfall identified two years ago. Obviously there has been inflation and I do not have a figure within the Minister of State's answer as to what that is now. The real test this year for the new Minister for Further and Higher Education, Research, Innovation and Science, Deputy Patrick O'Donovan, is if he will be able to deliver significantly on Funding the Future. If the Minister fails to deliver on it, he will not respond to the really important economic and social needs of this country.

Thomas Byrne (Meath East, Fianna Fail)
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Funding the Future outlines an ambitious programme of reform, centred on improving quality, driving skills and engagement, enhancing student participation and creating a more unified third level system. The measures taken over the last two budgets represent the Government’s response to Funding the Future. They signal the policy intention to improve the standing of our higher education system and to progressively bring our funding and staffing levels up. This investment will provide funding to strengthen capacity to deliver on reforms. This includes a reduction in the student to staff ratio.

In closing, the Senator will appreciate that, at this time, it is not possible to provide an indication of measures in budget 2025. The Government is committed to a right-sized and appropriately funded higher education system. We will continue to work through the Estimates process, which is starting now in all Departments, with the intention of delivering further investment in our higher education system. I thank the Senator for raising the issue and I will absolutely address concerns about the funding being provided to the higher education sector to the Minister.