Richard Bruton (Dublin North Central, Fine Gael)
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Question 20: To ask the Minister for Education and Science the way in which new funding, announced in budget 2006, will be dispersed amongst third level institutions; and if she will make a statement on the matter. [39564/05]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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In April 2005, as part of the Government's plans for implementing the programme of reform and development recommended by the OECD in its review of higher education in Ireland, I announced that I would establish a strategic innovation fund to drive transformation of the sector by promoting collaboration and change in pursuit of system wide excellence. The budget has now delivered the multi-annual commitment to allow this to happen.

The commitment to a guaranteed five-year fund allows for meaningful and far-reaching proposals for change to be brought forward. An initial €15 million will be available in 2006 in what is essentially a start-up year. This will grow to €60 million in 2007 and to €75 million per annum in 2008, 2009 and 2010. Awards under the fund will be made on the basis of a competitive call for proposals, to be launched by the Higher Education Authority in 2006. An international panel of experts will be convened by the Higher Education Authority to consider the proposals submitted and to make objective recommendations on funding awards.

The allocation of €900 million in my capital envelope for 2006 — 2010 and devoted to the third level sector has enabled me approve a further 35 major key priority projects across the sector. The approved projects, which were identified during the needs assessment and prioritisation work carried out by the Kelly review group, are in key strategic areas such as engineering, IT, science and technology, catering, tourism and the arts. A total of 18 of the projects will be delivered using direct Exchequer funding of €305 million and 17 projects will be delivered within a €270 million public private partnership programme.

A sum of €35 million of the funding will be used on completion of projects that I approved last year to support the significant expansion in recent years of teacher training places and projects aimed at addressing critical health skills shortages in a range of areas. A further €95 million will be allocated to cover commitments due in respect of the programme for research in third level institutions. A remaining balance of close to €200 million will be used to deal with emerging priorities in the context of overall national strategy.

These investments represent a new milestone for the development of higher education in Ireland. They make a resounding statement of the central importance of the sector to our national strategic objectives. The sector is ready to face the major challenges that lie ahead. I look forward to working with the Higher Education Authority, the universities and institutes of technology in delivering on the exciting potential for change and development that has now been created.