Joan Burton (Dublin West, Labour)
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174. To ask the Minister for Education and Skills if he has read the USI position paper on the funding of higher education regarding the effects a loan scheme would have on students; and if he will make a statement on the matter. [16876/17]

Richard Bruton (Dublin Bay North, Fine Gael)
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I am aware of the USI pre-budget submission and its recommendations for increased funding to the sector. The report of the Expert Group on Future Funding for Higher Education, which considers a number of potential funding options including for the deferred payment of student fees, is currently being examined by the Oireachtas Committee on Education and Skills with a view to making recommendations on a long-term sustainable funding model for higher education. This process includes receiving input from relevant stakeholders and I understand the Union of Students in Ireland is one of the groups who have made a submission. It will be important to obtain political and societal consensus on achieving a sustainable funding model for the higher education sector in the future and my Department and I continue to work with the committee as it undertakes its deliberations.

In follow-up to the Expert Group report, appropriate technical work will be undertaken by an inter-Departmental group chaired by my Department in relation to income contingent student loans in order to inform future funding policy options, including in light of recommendations from the Oireachtas Committee on Education and Skills.

Increased Exchequer funding of €36.5 million was secured in Budget 2017 for the higher education sector.  This includes an increase in the funding available to students from disadvantaged backgrounds and other under-represented groups to assist them in overcoming financial barriers to accessing and completing higher education.  Provision is also being made in the Department's expenditure ceiling in 2018 and 2019 for demographic increases which cumulatively represents an additional €160 million investment in the sector over the period 2017-2019. 

In addition, the Department and the Department of Public Expenditure and Reform are currently undertaking a public consultation process on a proposed Exchequer-Employer investment mechanism for higher education and further education and training. It is estimated that the mechanism, which proposes an increase in the National Training Fund levy from 0.7% to 1% between 2018 and 2020, could yield close to an additional €200m revenue in 2020. 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 13th 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 long-term sustainable funding model for the higher education and further education and training sectors.