Brian O'Shea (Waterford, Labour)
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Question 9: To ask the Minister for Education and Science the budget deficits of University College Dublin, University College Cork, the National University of Ireland, Maynooth, Trinity College, Dublin, and the University of Limerick; and if he will make a statement on the matter. [44340/08]

Brian O'Shea (Waterford, Labour)
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Question 26: To ask the Minister for Education and Science if his attention has been drawn to the fact that University College Dublin, University College Cork, the National University of Ireland, Maynooth, Trinity College, Dublin, and the University of Limerick are all running budget deficits; the amount of funding each of these universities has had reduced by the Exchequer due to the €44 million cutback for higher education; and if he will make a statement on the matter. [44339/08]

Batt O'Keeffe (Cork North West, Fianna Fail)
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I propose to take Questions Nos. 9 and 26 together.

The Universities Act, 1997, confers autonomous statutory responsibilities on universities in relation to the day to day management of their affairs. It is a matter for each university to manage their financial resources and to take the necessary steps to ensure that expenditure is kept within the approved budget.

There have been substantial improvements in the funding of higher education in recent years. Overall provision to the third level sector (including capital, recurrent funding and student grants) amounted to some €1.5 billion in 2004, some €1.9 billion in 2007 and some €2 billion in 2008. This is an increase of over 33% since 2004 and an increase of over 111% since 1998 levels when funding to the sector was some €949m.

Recurrent funding allocated specifically to the University sector has increased in recent years from €631 million in 2004 to some €790 million in 2007 and to some €831 million in 2008. This represents an increase of some 32% since 2004 and an increase of some 118% since 1998 levels. This excludes separately provided programmes of funding for capital, for research and development and from the Strategic Innovation Fund.

I have been advised by the Higher Education Authority (HEA) that of the five universities referred to by the Deputy, Trinity College Dublin do not expect to have a budget deficit for the purposes of their 2008 accounts. The expected budget deficits on the 2008 accounts in the case of the other universities referred to by the Deputy are as follows:

University College Dublin (UCD): €15m;

University College Cork (UCC): €3m;

The National University of Ireland, Maynooth (NUIM): €3.9m;

University of Limerick (UL): €1.5m.

These deficits will be a first charge on the allocations to each of these universities in 2009.

In relation to reductions in funding for 2008, a Government decision of July 2008 identified the need for savings of some €6.6 million to be achieved on the Education Vote in 2008. A savings target of €4.467m collectively was identified for the university and institute of technology sectors and the other HEA designated institutions. In this context, in addition to overall reductions on particular programmes of funding to the sector, specific reductions to notified recurrent funding allocations were applied directly to the five universities referred to by the Deputy as follows:

UCD: €241,618;

UCC: €158,472;

TCD: €176,499;

NUIM: €60,054;

UL: €83,974.

There is a responsibility on each of the universities to identify and take whatever measures are required to manage within the budgets available to them. The facility to carry deficits allows a degree of flexibility across calendar years to reflect the fact that the management of budgets in individual universities operates on an academic year basis. However, any significant carry-over of deficits into 2009 will present challenges for university management given the tight constraints on overall funding in 2009 and the need for the universities to achieve pay-roll and non pay savings in common with all public sector organisations. I understand from the Higher Education Authority that it is in continuing correspondence with the universities in relation to deficits and is meeting with each university to discuss their budgetary situation. The Irish Universities Association (IUA) has been advised that the Authority will be paying particular attention to the level of deficit in the sector and will be requiring specific plans on how institutions propose to address any deficits. Through the HEA, I will be monitoring the level of deficit in the sector on an on-going basis throughout 2009.