Carol Nolan (Offaly, Sinn Fein)
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142. To ask the Minister for Education and Skills his views on the recent HEA report that found Letterkenny Institute of Technology faces immediate sustainability challenges; and his plans to increase investment in the institution to address this ongoing funding crisis. [34164/16]

Richard Bruton (Dublin Bay North, Fine Gael)
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My Department allocates recurrent funding to the Higher Education Authority (HEA) for direct disbursement to the HEA designated higher education institutions, including Institutes such as Letterkenny Institute of Technology (LYIT). The HEA allocates this funding to the institutions and the internal disbursement of funding is then a matter for the individual institution.

The HEA has been closely monitoring the financial position of all of the IoTs and in particular are working closely with those Institutes operating in deficit, such as LYIT, to ensure appropriate mechanisms are put in place to eliminate the deficit as quickly as possible.

The HEA has a policy framework in place for engaging with vulnerable IoTs which requires Institutes to submit a three year plan to return them to a balanced budget situation. If the Institute is unable to demonstrate how a return to a balanced budget can be achieved within this timeframe, or if actual performance deviates significantly from the plan, then the HEA will seek the appointment of an independent financial expert to work with the Governing Body and Executive Management Team to agree a revised plan and programme of remedial action.

My Department and the HEA are aware of the financial difficulties being experienced by a number of the Institutes of Technology (IoTs), including LYIT. The Financial Review of the Institutes recently published by the HEA makes a number of recommendations on how some of the issues which contribute to funding problems in the IOT sector can be addressed. My Department is working with the HEA to action those recommendations.

Funding overall for the higher education sector is a key concern for my Department particularly in light of the additional pressure that will fall on the system over the next decade or so. In seeking to address the issue in the short term, I have for the first time in nine years secured as part of Budget 2017, additional funding for the sector. In 2017 additional funding of €36.5m will be made available with €160m additional over the next three years.

The Report of the Expert Group on Future Funding for Higher Education, published in July, clearly outlines the funding challenges and offers a number of approaches and recommendations for consideration for the medium term. As committed to in the Programme for Government, the report has been referred to the Oireachtas Education Committee and this consultation will form part of the process of formulating a plan for the future of the sector.