Albert Dolan (Galway East, Fianna Fail)
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2547. To ask the Minister for Education and Skills the current Government policy on the ability of higher education institutions, including universities, technological universities and institutes of technology, to borrow funds for capital or infrastructure investment; and whether such institutions are required to obtain approval or sanction before engaging in borrowing, and under what conditions. [19850/25]

Albert Dolan (Galway East, Fianna Fail)
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2548. To ask the Minister for Education and Skills the borrowing framework or restrictions that apply to publicly funded higher education institutions, including technological universities and institutes of technology; and whether any approval process, legislative limitations, or fiscal rules constrain such institutions from borrowing to invest in infrastructure or strategic development, such as student accommodation. [19851/25]

Albert Dolan (Galway East, Fianna Fail)
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2549. To ask the Minister for Education and Skills whether higher education institutions, including universities and technological universities, are permitted to borrow or raise finance independently to develop student accommodation; and any policy, guidelines, or restrictions currently in place that may limit or regulate such borrowing. [19852/25]

James Lawless (Kildare North, Fianna Fail)
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I propose to take Questions Nos. 2547 to 2549, inclusive, together.

The traditional university sector and the technological sector operate under separate legislation.

Provisions regarding how a university may borrow by means of bank overdraft or otherwise and may guarantee or underwrite a loan taken or borrowing undertaken by any person, are set out in section 38 of the Universities Act 1997 and section 21 of the Technological Universities Act 2018.

A Borrowing Framework, under section 38 of the Universities Act 1997, is in place for the traditional university sector.

Rules regarding how a technological university may borrow are not currently in place. However, there are commitments in the Programme for Government to enable technological universities to borrow funds for initiatives like student accommodation.

For institutions, other than traditional universities, to borrow there would need to a consultation process with the HEA. This would 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 Housing Finance Agency 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, requisite oversight, risk evaluation, project management and attendant governance and regulatory processes would also need to be established.

The development of robust and adequate systems ensures that any proposed borrowing is rigorously examined to protect both Exchequer funding and HEIs themselves.

A new student accommodation strategy is in development following Government approval of the long-term policy last year. The strategy will include measures to increase the supply of student accommodation, reduce the cost of delivery through standardised design guidance and promote efficient use of existing building stock through refurbishment and an examination of vacancy, while supporting balanced regional development through a Technological University (TU) student accommodation programme.

The intention of the TU student accommodation programme is to assess proposals and potential opportunities to meet the future demand for accommodation. The programme, together with the ongoing standardised design study, will provide a framework of viable delivery models based on regional needs and feasibility assessments. Any potential funding options will be informed by this framework of delivery models and may require approval by Government.