Simon Harris (Wicklow, Fine Gael)
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In November 2022, I received Government approval of €1 million to support our Technological Universities (TUs) in the development of a feasibility study to ascertain student accommodation needs on a local, regional and national level. This study will include data analysis and engagement with local authorities and other key stakeholders to determine the level and potential sources of student accommodation together with the corresponding demand in each region.

Department officials and I have had continuous engagement with the sector in relation to the feasibility study. On the 22nd of June I announced the commencement of phase one of this study as part of the Governments’ commitment to support the TUs in the development of their student accommodation strategies. My Department and I recognise that given the varying regional locations, a range of accommodation options will need to be considered including purpose built student accommodation, the promotion of digs accommodation and the identification and reuse of vacant premises.

Enabling appropriate access to finance is one of the significant requirements for the delivery by higher education institutions (HEIs) of student accommodation. The Department is exploring the development of a specific TU borrowing framework with Department of Finance and the Department of Public Expenditure and Reform. The options arising from the TU feasibility study will inform this ongoing engagement. It is anticipated that any borrowing framework would in the first instance prioritise the provision of student accommodation in line with commitments in the Government's Housing for All plan.

In December 2021 the Minister for Housing, Local Government and Heritage confirmed that his Department had reviewed the Housing Finance Agency Act 1981 (as amended) and was satisfied that the legislation in place was robust enough to allow the Housing Finance Agency (HFA) to also lend, in addition to universities designated under the Universities Act 1997, to TUs, Institutes of Technology and other institutions encompassed by the definition of “Institutes of Higher Education” in the Higher Education Authority Act 1971, where such borrowing is in respect of the provision of housing accommodation for students.

This provision was further strengthened under Section 130 of the Higher Education Authority Bill (as amended) by copper-fastening and broadening the type of institution to which the HFA can lend to with relevant consents, including other education institutions not designated under the remit of the HEA but who are in receipt of core funding through the public system.

Institutions, other than traditional universities, would firstly require consent to borrow following consultation with the Higher Education Authority. This will necessitate the establishment of an appropriate framework setting out the criteria, financial and non-financial, including governance, oversight and reporting to define the operational process through which such consent would be sought and obtained. Having passed those primary screening tests the prospective borrowing entity would then be required to pass the relevant tests, procedures and requirements of the HFA before accessing borrowing funds.

The impacts, risks and responsibilities arising from such borrowing are key considerations in this context. In addition to accessing borrowing on commercially viable and appropriate terms such as would not adversely impact the financial position of TUs themselves or the wider public finances, as stated requisite oversight, risk evaluation, project management and attendant governance and regulatory processes would also need to be established. I am confident that there will, as appropriate, be robust and adequate systems in place to ensure any proposed borrowing is rigorously examined to protect both Exchequer funding and HEIs themselves.