Catherine Martin (Dublin Rathdown, Green Party)
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62. To ask the Minister for Education and Skills if his attention has been drawn to the fact that the national training fund has a current surplus of €272 million projected to the end of 2017; the reason this surplus is not being applied to the crisis in higher education funding if part of its purpose is to provide skills to prospective employees and to facilitate life-long learning; and if he will make a statement on the matter. [35186/16]

John Halligan (Waterford, Independent)
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The National Training Fund (NTF) was established under the National Training Fund Act 2000 to raise the skills of those in employment and to provide training to those who wish to acquire skills to take up employment. It is also used to provide information in relation to existing, or likely future requirements for skills in the economy.

The Act, provides for the imposition of a levy on employers, the main source of income for the Fund. The levy on employers is 0.7% of reckonable earnings in respect of employees in Class A and Class H employments, which represents approximately 75% of all insured employees.

Over a number of years the annual levy income from the NTF was less than the amount expended.  The income levy went from a high of €413 million in 2008 to €299 million in 2012.  Since 2012 however, the levy income has increased annually due to improved employment levels, to an expected income of €405 million by the end of next year.   

 €362 million has been made available annually over the last number of years from the NTF for training for employed and unemployed people. The surplus in the Fund at the end of 2015 was €183.762m. This is expected to increase to €217m at the end of this year and to €272m by the end of 2017. 

In accordance with the NTF Act the surplus remains in the accounts of the National Training Fund. In the past, the accumulated surplus in the fund has been important in maintaining expenditure levels, particularly in the provision of training for the unemployed, in periods when receipts fell.  It should also be noted that NTF funding forms part of the Department’s annual overall expenditure ceiling and any increase in NTF expenditure will have to be offset by reductions in expenditure elsewhere.

The Report of the Expert Group on Future Funding for Higher Education, published in July, clearly outlines the funding challenges in the higher education sector 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 Education Committee as part of the process for formulating a plan for the future of the sector.

To address the immediate challenges in the Higher Education sector, I am pleased that in Budget 2017 I secured additional funding for the first time in recent years. In 2017, an additional €36.5 million will be made available with €160 million additional over the next three years. This will allow the sector keep pace with demographic increases and introduce targeted initiatives in areas such as disadvantage, skills, research and flexible learning. Among those who will benefit from the additional third level funding being made available are, students from disadvantaged backgrounds, lone parents and Travellers.