Michael Healy-Rae (Kerry, Independent)
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190. To ask the Minister for Education and Skills his views on a matter (details supplied) with regard to the future funding of third level colleges; and if he will make a statement on the matter. [15513/17]

Richard Bruton (Dublin Bay North, Fine Gael)
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The report of the Expert Group on Future Funding for Higher Education which was published last year, set out a number of options for a long-term sustainable funding model for higher education. The options included a predominantly state-funded system, increased state funding with continuing upfront student fee and increased state funding with deferred payment of fees. The report also recommended that employers should contribute more to the funding of higher education and that the scope of the National Training Fund should be extended to include greater support for programmes in higher education and the levy should be increased to facilitate this.

The report is currently being examined by the Oireachtas Committee on Education and Skills with a view to making recommendations on a future funding model for higher education.

The state currently provides a significant proportion of the core funding for higher education. In Budget 2017 increased Exchequer investment in  higher education of €36.5m was secured, the first significant reinvestment in higher education since the beginning of the financial crisis and was made in response in the first instance to intensifying demographic pressures. In addition, provision is again being made in the Department’s expenditure ceiling in 2018 and 2019 for demographic increases in the higher education sector which cumulatively will represent an additional €160m investment by the Exchequer in the sector in the period 2017 – 2019.

Furthermore, on foot of a commitment in Budget 2017 and arising from a recommendation in the Expert Group report, I and my colleague, the Minister for Public Expenditure and Reform, launched a public consultation process on 10 March 2017 on a proposed Exchequer-Employer investment mechanism for higher education and further education and training. The investment mechanism on which views are sought in the consultation process is the proposed incremental increase of the National Training Fund levy by 0.1% each year between 2018 – 2020. It is estimated that should employment levels reach those forecast for 2020, together with the assumption of moderate growth in incomes, an increase in the levy from the current rate of 0.7% to 1% by 2020 could yield close to an additional €200m. Comments on the proposal may be submitted to the Departments of Education and Skills and Public Expenditure and Reform by 5 p.m. on Thursday 13 April 2017. Full details of the consultation process are available on the websites of both Departments.

The intention is that, taken together, these approaches will contribute to and inform the development of a sustainable long-term funding model for the higher education and further education and training sectors and will help to drive continued reform, quality and performance improvement across the sectors in line with the ambitions and objectives set out in the policy frameworks for the sectors.