Olwyn Enright
Question:24 Ms Enright asked the Minister for Education and Science the way in which he intends to address the difficulties faced by third level institutions as a result of the cutbacks in the 2003 Estimates. [26864/02]
Ceisteanna – Questions. Priority Questions. - Third Level Colleges.
The Conference of Heads of Irish Universities and the Council of Directors of the Institutes of Technology met separately with officials of my Department recently regarding the Estimates provision for 2003 and have since written to me regarding their concerns about the level of funding for the third level sector.
The recurrent allocation for the university sector in 2003 is 1.7% above the 2002 projected outturn when account of the additional income to the institutions from the increase in the third level charge is considered. The recurrent allocation for the institutes of technology in 2003 is €372.9 million, which is approximately 1% less than the 2002 Estimates provision. However, when compared with the 2002 projected outturn which also takes account of the additional income to the institutes from the increase in the third level charge, the 2003 Estimates provision represents a 1% increase.
The provision of funding for 2003 was decided having regard to the current economic constraints and the Government's commitments and priorities. In this regard it should be noted that in the past five years there has been an increase of 84% in the provision for the university sector as the recurrent grant increased from €333.831 million in 1997 to €615.443 million in 2002. In the past five years there has been a 95% increase in the provision for the technological sector as the recurrent grant increased from €192.7 million in 1997 to €376.1 million in 2002.
In the circumstances it will be a matter for the universities to manage their resources in 2003 and, where necessary, to effect economies to keep expenditure within the approved budget.
My Department and the Higher Education Authority are working to examine ways in which we might minimise problems arising out of the Estimates. I am confident that the regular monthly meetings between the authority and my Department will provide the necessary forum within which issues arising can be discussed and mutually agreeable solutions formulated.
Is the Minister not concerned that third level institutions believe they have to run their institutions like a business rather than an educational facility and that they have to look at the provision of education from a business point of view? Even prior to the Estimates, the president of one third level institution said we should try to increase our intake of foreign students, who pay higher fees, for financial and cultural reasons. Has the Minister concerns about that view? I have no difficulty in taking in those people for cultural reasons but I am not sure if we should use our universities to raise money by taking in foreign students.
The Minister is aware that the presidents and directors of the institutes of technology have admitted that they are facing a financial crisis and that they will have to borrow substantial sums to meet a shortfall which they expect to be in the region of €39 million.
Will the Minister confirm whether he had regard in the Estimate for decisions approved by his Department and the Department of Finance, including PPF, new structures and approved staff recruitment for 2003? Those staff have been recruited but the money to pay them does not seem to be available. How will he address this?
I believe universities and third level institutes should have academic freedom, but that does not mean they should not try to be as effective and efficient as they can. The third level sector cannot be more immune to the current financial realities than any other sector. The sector has received its allocation and will have to live within it; there is no further money available. Furthermore, I do not agree with the institutes borrowing money because to do so would be to take from next year's allocation.
Third level institutions should accept foreign students and not only for financial reasons. We should encourage them to accept foreign students as it will help build cultural relations between this and other countries. The institutes of technology will have to face the new financial realities. They have received their budgets and the Department made it clear that that was all the money they were to receive.