Carol Nolan (Offaly, Sinn Fein)
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63. To ask the Minister for Education and Skills his plans relating to the surplus of the national training fund. [1890/17]

John Halligan (Waterford, Independent)
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The National Training Fund is mainly resourced by a levy on employers of 0.7% of reckonable earnings in respect of employees in Class A and Class H employments, which represents approximately 75% of all insured employees. The levy is collected through the PAYE/PRSI system and funds are transferred monthly to my Department by the Department of Social Protection.

The amount collected has varied over the last number of years broadly in line with employment levels. Receipts went from a high of €413m in 2008 to €299m in 2012 and have increased to €390m in 2016.

There has been a shift recently in the focus of investment with more funding allocated to training those in employment and less allocated to training jobseekers due to the upturn in our economy and more people in employment. In 2017, by reducing the funding allocated to training for the unemployed I have provided an additional €24 million to training those in employment to meet demand which will arise mainly in the expansion of apprenticeship opportunities.

The accumulated surplus in the fund has been important in maintaining expenditure levels, particularly in the provision of training for the unemployed, in the years when receipts fell below the expenditure levels required. It is prudent to continue to maintain an adequate surplus in the Fund to meet demand in future years and it should be noted that, while the current surplus of €232 million represents a very significant sum, it would only cover 7 months NTF expenditure at current levels. In 2017, I am providing funding of €366 million for training activities from the NTF.

While the NTF does not form part of the Vote of the Department, the allocation for each scheme is determined as part of the annual Estimates process. The NTF is included as an annex to the published Estimates of the Department and such funding is included in the overall expenditure ceiling for the Department since 2011. This is important as it means that overall expenditure from the Fund cannot be increased, even where receipts increase, without a corresponding drop in voted expenditure.

I will continue to monitor the potential use of the Fund in the context of overall financing arrangements for education and training planned to meet current and emerging skill needs.