I thank the committee for the invitation to the meeting this morning. The committee asked that we address a number of specific issues, and we did so in the documentation forwarded to the committee last week. I will briefly outline the key issues as we see them and we can discuss them in more detail during the questions.
With regard to the proposed reintroduction of fees, it is our view that, with the annual student service charge due to increase from the current level of €900 to €1,500 in September 2009, a fairly significant level of student contribution to tuition is already in place. The introduction of the free fees initiative in 1995 meant, in effect, the abolition of university tuition fees. Previously, the certificate and diploma courses which were run in the institutes of technology, or regional technical colleges as they were then known, did not attract tuition fees as they were funded by the European Social Fund, ESF. Indeed, the students also obtained a maintenance grant. Currently, higher education institutions are reimbursed tuition fees on a per capita basis related to the level of programme studied. Given the strength of institute of technology provision at levels 6 and 7, that is, higher certificate and ordinary degree, on the National Framework of Qualifications, institutes receive less tuition fee income per student than universities. Where programmes in the same discipline and at the same NFQ level are offered and delivered in universities and institutes of technology, the amount paid to institutes is lower.
The institutes are particularly concerned that the formal re-introduction of undergraduate tuition fees could have serious negative repercussions for the sector and those wishing to attain third level qualifications. There could be a significant migration of students and revenue from Border areas in particular to Northern Ireland and the UK if there were significant fee differentials due to the introduction of tuition fees in addition to the student services charge. In our submission we looked at the current trends in participation at third level, which shows a very significant increase in the number of mature students and people presenting with further education qualifications, the FETAC qualifications, through the PLC route. That is very positive. Other cohorts that should be considered are ethnic groups, disabled learners and particularly the socio-economically disadvantaged group for whom the institutes cater particularly well. Approximately 30% of our cohorts are in that group. The regional distribution of institutes of technology throughout the country is particularly suitable for people in those cohorts trying to attain higher education. That is a very important factor in the growth in that area.
If the formal reintroduction of undergraduate tuition fees is proposed, the current inequity between full-time and part-time provision should be addressed. Currently, part-time students, who are usually in the mature student category, must pay tuition fees. Furthermore, from the institutes' perspective, all part-time programmes must be run on a break-even basis, at least. That makes those programmes prohibitively expensive to run and for students.
We believe that all citizens with the academic ability to succeed in higher education should have the opportunity to participate. Given their importance to the economy and to lifelong learning, we believe that level 6 and 7 programmes should only incur the current student services fee. Alternatively, we suggest that access to funding for a certain number of third level credits, perhaps 120, would be available to all, to allow them to choose their range of programmes. In addition, specific level 8 programmes — honours degree programmes — in specific areas targeted for skills needs should be in receipt of significant State incentive to encourage participation in them.
If tuition fees are to be formally reintroduced, it is essential that appropriate student supports are in place. The current means test is solely income-based and inequitable. It is based on the means at commencement and remains that way throughout the course, irrespective of changes in means. Valid and workable mechanisms must be put in place to determine who should be exempt or partially exempt from tuition fees if they are introduced. If a student loan system is introduced, the possibility of an income contingent repayment loan should be examined. In other words, students would repay the loan on completion of the course and repayment would be related to the amount of income they earn in their working environment. If that is introduced, repayments should be effected through the existing Revenue collection system rather than through any other mechanism.
On the second issue of accountability and measurement outcomes, academic standards in the institutes of technology have been subject to rigorous internal and external evaluations since the late 1970s. Internally, academic councils have an independent statutory quality assurance role. Equally, the institutes operate according to the procedures of the Higher Education and Training Awards Council and the European standards and guidelines for quality assurance. These include a comprehensive system of external validation, new programmes and comprehensive programmatic and institutional reviews that include learner as well as national and international peer review.
The IT sector is well regulated in terms of financial controls. Some 80% of the budget relates to pay, and there are well-defined pay scales. A significant proportion of the remainder is committed to fixed costs and overheads. The institutes operate a common chart of accounts and finances are managed through a common management information system. The institute president is the statutorily accountable person for the institutes and is supported by a secretary and financial controller. We also have an externally sourced internal audit function which serves the whole sector. Some institutes also have an internal audit function. The institutes also have an internal audit committee of the governing body, which serves an important function. Of course, our accounts are also audited by the Comptroller and Auditor General.
In its review of higher education in Ireland, published in 2004, the OECD commented that Ireland has made enormous strides over the previous 15 years in substantially growing participation rates in higher education without any evidence of a lack of quality. That growth in participation continues while at the same time full attention is paid to enhancing the quality of the teaching and learning experience. It is widely accepted that a knowledge economy requires a significant emphasis on science and engineering graduates. Today, the institutes of technology are the largest providers of graduates in both disciplines.
The ITs and the Higher Education Authority have agreed that a unit costing model should be developed It is being tested within the IT sector, comparable to the university sector. That is to be completed by the end of 2009.
On the next point, other education issues, of which there could be a large range, we appreciate the opportunity offered to comment on them. One of particular relevance at the moment concerns labour market activation measures. The institutes have produced a range of targeted programmes to assist people who are unable to obtain work owing to the economic downturn. We have also looked in particular at the apprenticeship issue, which is significant in our sector.
We have also outlined a proposal to create a national technological university within the institutes of technology as constituent colleges. We believe that is an important designation to reflect properly the level and range of teaching and research activities carried out within the sector where we all operate to level nine and level ten in research. We believe it is important to respond to the growing international interest in Irish higher education. The lack of international recognition of the title "institute of technology" is a barrier to increasing activity and income. Having a common designation would also create a common brand for marketing the institutes internationally.
Another issue, which has been on the agenda for some time, concerns securing Seanad voting rights for graduates of the institutes of technology comparable with the university sector. That should be brought in through legislation so that we would have a common right, possibly with six seats across the sector equally.
I have kept those introductory remarks fairly brief. We will be happy to deal in more detail with the questions as they arise.