Dáil Éireann debate -
Tuesday, 16 Dec 2003

Vol. 577 No. 3

Written Answers. - Third Level Funding.

Michael D. Higgins

Question:

69 Mr. M. Higgins asked the Minister for Education and Science the steps he plans to take to address the financial crisis facing many third level institutions, especially in view of the failure to adequately increase the financial allocation for the third level sector in the Estimates for 2004; if his attention has been drawn to the fact that Trinity College, Dublin has been forced to delay re-opening after Christmas, due to the severity of its financial crisis; and if he will make a statement on the matter. [30912/03]

Eamon Ryan

Question:

118 Mr. Eamon Ryan asked the Minister for Education and Science if he will elaborate on comments made at the Oireachtas Education and Science Committee to the effect that third level student bodies could be more effective with their usage of available funds, specifically in relation to foreign travel and its impact on shortages of funds for other areas. [30968/03]

Minister for Education and Science (Mr. N. Dempsey):

I propose to take Questions Nos. 69 and 118 together.

The sum of €630.5 million has been provided in the 2004 Estimates for universities and Higher Education Authority designated institutions. In addition, a sum of €410.2 million has been provided for the institute of technology sector, including one vocational education committee college. The challenge of ensuring that our higher education system is responsive to, and a leader in terms of, change being key to our future national economic and social well-being. The Government has identified the need to achieve a successful transition to a knowledge-based economy as being central to our future competitiveness and prosperity. The Government has been investing heavily in our higher education system and in our research infrastructure in order to provide the vital foundation required for that transition.

From 1997 to 2003, there has been an increase of €297 million in the recurrent provision to the university sector. This represents an increase of approximately 89% over this period. Overall funding, capital and current, for the wider higher education sector will stand at €1.48 billion in 2004. This is up €631 million or 74% on 1997 levels. Demands for resources in any sector must be considered in the context of many competing meritorious programmes. I must balance a number of highly sensitive and immediate issues to which an appropriate priority has to be afforded. Equally, I understand that real sustainable progress on all fronts is only possible if we achieve the social and economic growth which will flow in the longer term from continued investment in the higher education sector.

I am aware that the universities will be significantly challenged in the short-term by the constraints on current Exchequer funding placed on them in 2004 having regard to overall cost pressures. I appreciate the difficult choices individual institutions are presented with in reconciling available budgets with pre-existing demands and commitments. Equally, I am aware that as we move up the value chain as an economy over the coming years our institutions must be primed for the delivery of world-leading quality services. Each of us with a stake in the governance of the university sector in the short-term has a strong interest in ensuring that our universities are placed to meet these challenges from the front in international terms.

The OECD review of higher education which I announced last August will make a key contribution in this regard. The objective in carrying out the review is to lay down a strategy for future excellence for higher education in Ireland in the context of the intensely competitive global environment in which we now operate. Moving forward, we need to measure ourselves against the best systems worldwide if we want to build on the strong foundations for success which Ireland already enjoys.

The OECD review will provide us with that international reference point. Important questions around the future financing of the university sector, highlighted in the recent CHIU document which pointed to a growing dependence on Exchequer funding over recent years, will be considered as part of the OECD review. I look forward to working with the universities as they play their central part in achieving the vision for our future economic and social development. Together we must address the very immediate challenges we face in putting our higher education system on the strongest possible footing as we face the strategic task ahead.