Bríd Smith (Dublin South Central, People Before Profit Alliance)
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128. To ask the Minister for Education and Skills his views on the announcement from Galway Mayo Institute of Technology that a significant number of courses are to be axed at the campus; and the way measures will impact on his departments Action Plan for Education and it's aims. [10633/17]

Bríd Smith (Dublin South Central, People Before Profit Alliance)
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129. To ask the Minister for Education and Skills if the reduction of State funding from 2008 to 2014 is affecting the range and quality of courses offered by institutes of technology; and if he has been informed by the governing bodies of any IT plans to reduce the level of services as a result of budget shortcomings. [10634/17]

Richard Bruton (Dublin Bay North, Fine Gael)
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I propose to take Questions Nos. 128 and 129 together.

My Department allocates the recurrent funding to the Higher Education Authority (HEA) for direct disbursement to the HEA designated higher education institutions, including the Institutes of Technology (IoTs) such as Galway Mayo Institute of Technology (GMIT). The HEA allocates this funding to the institutions and the internal disbursement of funding is then a matter for the individual institution. Higher Education Institutions are autonomous bodies and are responsible for their own day to day affairs, including the allocation of all of its income (both public and private). They are also responsible for the provision and management of courses at their institution.

My Department and the HEA are aware of the financial difficulties being experienced by a number of the Institutes of Technology (IoTs), including GMIT. The HEA has been closely monitoring the financial position of all of the IoTs and in particular it is working closely with those Institutes operating in deficit to ensure appropriate mechanisms are put in place to eliminate the deficit as quickly as possible.

The Financial Review of the Institutes, published last year by the HEA, was carried out in order to provide an overview of the financial health of the sector, to consider capacity issues and to examine the challenges for the institutions given their respective plans for the future. The report makes a number of recommendations on how some of the issues which contribute to funding problems in the IoT sector can be addressed and my Department is working with the HEA in relation to those recommendations. These policy recommendations will also feed into the work being undertaken on developing a sustainable funding model for the sector.

In addition, 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. The HEA and the GMIT executive are engaged in ongoing contact in relation to the financial difficulties being experienced by GMIT.

Funding overall for the higher education sector is a key concern for me, particularly in light of the additional pressure that will fall on the system over the next decade or so - an issue which is clearly set out in the Report of the Expert Group on the Future Funding for Higher Education, which is currently with the Joint Oireachtas Committee for consideration. However, in seeking to address the issue in the short term, I have for the first time in nine years secured additional funding for the sector with €36.5m additional being made available this year and €160m additional overall over the next three years.

In addition, in Budget 2017 the Minister for Public Expenditure and Reform and I announced a policy review with the aim of designing and implementing a sustainable and predictable multi-annual funding model for higher and further education and training involving increased Employer and Exchequer contributions from 2018. The review will be undertaken as part of the overall response to meeting the anticipated skills needs in the economy over the coming years, in line with the policy framework set out in the National Skills Strategy.

It will include an analysis of the business case for enhanced investment in the higher and further education and training sectors. In this context it will identify key elements of the new funding model and of the expected impacts, including those on employers. The review will include consultation with stakeholders. It is expected that the policy review will be published by the end of April 2017, and will complement the ongoing work by the Oireachtas Committee in relation to the Cassells report.