Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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To ask the Minister for Education and Skills his views on the practice of some higher education institutions setting up limited companies to attract international students when these limited companies would be used to pay staff over and above the agreed pay scales. [43095/12]

Ruairi Quinn (Dublin South East, Labour)
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The legislation which provides for the establishment and operation of the universities and the institutes of technology (e.g. the Universities Act, 1997 and the Institutes of Technology Act, 2006) provides that they may establish or participate in the establishment of corporations. Over the years a number of corporations have been established particularly in the university sector. Generally, these corporations tend to be concerned with such activities as research, knowledge transfer, student residences, catering etc.

Such corporations are independent corporate bodies which set the terms and conditions and rates of salary applicable to their own employees. However, such corporations may only make payments to staff who are employees of a university or IoT working in the corporations which exceed the authorised rates of pay for such public sector employees, if there is a Framework in place which has been approved by the HEA to permit this. There is no such Framework currently in place that would permit such payments to be made.

My Department is not aware of any corporations established to date specifically for the purpose of attracting international students.