Catherine Murphy (Kildare North, Independent)
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228. To ask the Minister for Education and Skills if he will provide an update with respect to any forthcoming changes in funding models for third level institutions; if he expects fees to be charged to students directly or a loan system put in place; and if he will make a statement on the matter. [36299/13]

Ruairi Quinn (Dublin South East, Labour)
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The Higher Education Authority (HEA) is introducing a new performance-based framework where up to 10% of an institution's core grant funding will set aside to be released based on institutional performance. The framework will be mediated through a process of strategic dialogue leading to agreement of mission-based performance funding compacts between each Higher Education Institution and the HEA. In launching performance funding this year the HEA has decided to limit the amount of funding under the Framework to €5 million in 2014 as a developmental phase.

The HEA has also issued a request for submissions to the Universities and IoTs under a Strategic Innovation Call of €15 million. This includes a €10 million call to support reform in three priority areas - teaching learning, access, engagement with enterprise. The balance of €5 million relates to support for work to implement the landscape recommendations - clusters, mergers etc. This is intended to be small projects relating to technical expertise in managing change.

The HEA is also undertaking a study on the sustainability of the current funding system for higher education. This study was initiated at my request and an initial report has been published. This report makes it clear that immediate work is required to prepare for a longer term approach to a system that can be maintained through a sustainable funding base capable of addressing the continual expansion of the sector while protecting quality of education. The HEA is continuing its work in this area, which will help inform the decision-making as to the future funding of the sector and I will be advised further as this work progresses.