Is mór an onóir dom bheith anseo inniú chun an Bille seo a léamh. Is é seo mo chéad uair mar Aire Oideachais agus Eolaíochta bheith as comhair an tSeanaid agus is é mo chéad uair bheith os comhair an Oireachtais le Bille.
This Government is committed to developing our education system to address the principal challenges that face us at the turn of the millennium. In this, we have two main priorities. Firstly, we want to bring into the benefits of education, groups who have previously been excluded. This must involve both extending provision and creating new types of provision. I have already been able to announce a number of initiatives in this area and will be in a position to announce further ones in the months to come.
Our second priority is to develop our education system so that it can keep pace with the changing modern world. We must enhance the place of education as a driving force in the economic life of our country. Crucial to this is the need to put right any perceived barriers to economic development arising out of skills shortages, particularly in the technological sector. At the heart of this Bill is a plan to deal comprehensively with this issue. Soon after my appointment I met with representatives of the IDA and the major technological companies operating in Ireland as well as other State agencies and representatives of the teaching unions. I also met with the heads of the Irish universities, the colleges of technology and the regional technical colleges. Following these meetings I announced a programme to increase graduate and technician output from our institutions in order to meet emerging skills needs in the high technology sector. This involved an immediate capital investment of £5 million in creating extra places in third level colleges for 1997. At the time I launched this programme I said further consideration would be given to more capital investment in the context of the 1998 Estimates. We are now in a position to fulfil this promise.
It was in this skills initiative that the Scientific and Technological Education (Investment) Fund had its genesis. Three key objectives underpin the investment fund. First, we want to renew and modernise the infrastructure of third level institutions, particularly in the technological sector, and guarantee they will continue to produce high quality graduates. Second, we want to develop new areas of activities in our institutions, especially where emerging skills needs have already been identified and, finally, we want to invest in promoting the innovation which will be so crucial to maintaining and expanding our recent growth. Underlying all of this will be an investment in developing the technology and skills base of our first and second level schools.
The need for major investment in the scientific and technological area became more apparent as I considered how the regional technical colleges and institutes of technology had been virtually starved of capital investment for their infrastructure; how the institutions of higher education had a dire need of a capital injection for the purchase of equipment; how research and development in the institutions had been operating on a shoestring for many years; the fact that, while plans for major developments in computer education in first and second level schools were announced, no money had been spent to progress these plans; the fact that the training for the hotel and tourism industry was being hindered because of a lack of proper facilities in the colleges, and the fact that apprenticeship training and post-leaving certificate programmes had had virtually no capital investment for a very long time, if ever.
When all of these factors are put together they add up to a very significant need in the technological, scientific and vocational sectors of education. What we are putting in place with this legislation represents a dramatic response to those needs.
This is not a very long or elaborate Bill. However, in terms of what it contains, it is a Bill of the utmost importance. I would like now for the benefit of the House to detail the main provisions of the Bill together with the background and rationale for the provisions.
In regard to the title of the Bill, Senators will note that it refers to an investment fund. There is, indeed, provision in the Bill for an account for the purposes of receiving private donations and this account will be known as the "investment account". However, in the context of what is involved in this Bill the word "investment" in the title refers to the Government's commitment to invest in technological, scientific and vocational education and this investment represents a vote of confidence in this sector of education to deliver the human resource needs of a technology oriented economy.
This represents the crux of the Bill. By establishing a fund and allowing a flexible procedure for planning, the Bill will give a stable medium-term base for developments. The insecurity which comes from the often fraught Estimates process will not affect this investment. It will allow our development agencies to attract employment and inward investment with confidence and it will allow our institutions to seek to build on the State's funding.
Section 2 of the Bill establishes the fund and outlines the two accounts which will form the fund, namely, an account with the Office of the Paymaster General and a private donations investment account. It is opportune now for me in this context to acknowledge very significant private investment by individuals and companies in third level capital projects. These have been for the most part in the university sector and great gratitude is due to the benefactors for their very generous contribution. Credit is due also to those in the institutions who have sought and secured these contributions.
It is important, of course, that private donations would be kept separate from Exchequer moneys in the fund and that any moneys accruing through investment or otherwise from private donations would be paid into the private investment account. In this way benefactors can be assured that their contributions are clearly earmarked as being outside of Exchequer contributions. The Bill provides for this.
This section also provides that, while the Minister for Finance is responsible for management of the fund, this function may be delegated to the National Treasury Management Agency. It is in fact intended that all balances within the fund, whether provided by the Exchequer or by way of donation, will be managed by the National Treasury Management Agency.
Surplus private sector donations, to be kept in a separate investment account, may be invested in Government securities. The management of this investment account will be delegated to the NTMA. Similarly, any balances arising from moneys provided by the Exchequer to the fund will be managed by the NTMA. In the latter case, this would be done through the cash management system which operates for the Exchequer generally. Under this system, any balances held in departmental or other accounts are effectively pooled together and the aggregate balance is managed by the NTMA in such a fashion as to achieve the maximum overall return.
What matters is that additional money is added to the State's investment, not the manner in which that money is added. Whether that is achieved through contributing to the investment fund or by way of the institutions themselves, we expect a significant amount to be added to the core allocation. Experience indicates that direct contributions to institutions are more likely and that the ready availability of secure State matching finance will allow institutions to increase significantly the level of these contributions.
Section 3 is, perhaps, the "meat" of the Bill. It provides for payment into the fund, out of moneys voted by the Oireachtas, of £250 million over the three years 1998, 1999 and 2000. The sum of £100 million will be paid in 1998.
This provision represents a radical departure from previous capital provision for my Department. Although the money will be voted in the Estimates for the Department in the normal way, its provision in a special fund will facilitate a rolling programme of capital investment over a number of years which is difficult to achieve in the normal year by year capital provision. The establishment of the fund and the specific provisions relating to the £250 million in section 3 gives effect to the Government's commitment to capital investment in education in a way never before outlined. Although it is not stated in the Bill, I assure the House that payments into the fund will be additional to the normal year on year capital Estimates for my Department. As a result, the total capital provision for my Department next year will be in excess of £220 million. The corresponding Estimate for 1997 was £94.8 million, although the outturn for that year was higher than the Estimate.
Section 4 of the Bill outlines the purposes for which payments may be made from the fund. The provisions in section 4 cover in a generic way the seven broad areas which will benefit from the fund. Although it is not stated in the Bill, I wish to outline the indicative sums it is proposed to invest in each of these areas.
It has been recognised that continued investment in human capital and in the production of a highly skilled labour force has been a major factor in Ireland's high rate of economic growth in recent years. In particular, the availability of a skilled labour force has formed a crucial part of the IDA's success in attracting significant foreign inward investment, including many leading multinational manufacturers. An interdepartmental group chaired by Professor Frances Ruane estimated that an additional output of 1,000 software graduates and 750 engineering technicians is required annually to meet emerging skills shortages in this sector alone. An extra annual intake of this magnitude would require the creation of about 7,000 new third level places.
The steering committee set up to advise on the most cost effective means of providing the additional places, chaired by the Higher Education Authority, consulted widely with industry and third level colleges. In its report, submitted in June 1997, the committee recommended that a dedicated capital provision be allocated to fund the necessary capital projects. Last July the Government approved an immediate capital investment of £5 million for 1997. Provision of £60 million in the technology investment fund will ensure the proposed expansion programme can proceed effectively and within the necessary time-frame. It is worth recalling that Lindsay initially proposed a £50 million fund.
Skills shortages have also been emerging in activities relating to tourism and catering. This development has become a matter of great concern to the Government, given the growing significance of tourism to the economy. The benefits, both in terms of contribution to GNP and employment creation, have been considerable. More than £1 billion accrues to the Exchequer each year from spending associated with tourism, while a recent survey by CERT indicates that in excess of 188,000 persons are employed in the sector.
The rapidity of the growth in employment has led to skills shortages, particularly in catering areas where demand for employees far outstrips supply. The present capacity of the education system to respond to the problem was constrained by the infrastructural inadequacies of colleges, many of which were established more than 25 years ago at a time when tourism played a much less significant role in the economy.
Efforts to increase the output of qualified workers from the education system and expansion of existing facilities at various regional technical colleges, the Dublin Institute of Technology and the Tourism College in Killybegs have been ongoing, but at too modest a level to address the extent of the demand problems. The scale of the expansion necessary to meet the growing demand requires significant capital investment. It is for this reason and because of the importance of the industry in terms of employment, that I propose that an additional £20 million be set aside from the technology investment fund to support appropriate capital developments in the colleges.
There is strong evidence to show that there is a direct relationship between investment in good education and training programmes and economic development. This is particularly the case for apprenticeships and post-leaving certificate vocational training programmes.
Under PESP it was agreed that the statutory apprenticeship scheme would be improved to meet in a more effective way the need for highly skilled craftspersons. The main objective was to ensure a satisfactory balance between supply of, and the demand for, apprentices.
A new apprenticeship training model has been developed comprising of four on-the-job training modules and three off-the-job training modules. The aim was to increase the number of apprentices enrolling each year in designated trades from 2,500 to 3,500. The current level of economic prosperity has resulted in increased enrolment of apprentices beyond the 3,500 which was planned for. However, there is still a shortfall of training places for apprentices in a number of designated trades — for example, the electrical, plumbing, carpentry and joinery trades. The investment fund will cater for a real need to increase the capacity of the regional technical colleges, Dublin Institute of Technology and WIT workshops and related facilities to meet the demand for an increased number of training places for apprentices in the traditional designated trades.
The training given to students on PLC programmes has enabled them to acquire relevant and marketable skills. This has been widely commented upon by industrialists and others in the business sector. Through the knowledge, competencies and expertise gained from these programmes, PLC graduates can contribute to economic development and meet, through their specific skills, many of the needs of modern enterprises.
Capital investment is required for infrastructural developments in the PLC sector. Many post-leaving certificate centres need to have their physical facilities upgraded and expanded to prepare their students more effectively in both traditional and developing areas of science, commerce and technology. I propose an investment of about £20 million from the fund for the purposes of capital infrastructure in the PLC and apprenticeship areas.
The addition of a network of regional technical colleges in the early 1970s was an integral part of a major reform of the education system. Apart from constituting a response to pressures of growing third level enrolments, the creation of a network took place in the context of industrial policies which promoted the development of manufacturing industries in regions of traditionally high emigration. By equipping the local population with the necessary technical skills, industry could be attracted to the region and consequent employment creation would offer graduates new opportunities at home. In addition, the colleges would assist in supporting greater regional equality of participation in education.
From the outset these colleges, including Dublin Institute of Technology, have sought to anticipate the range and level of education and training provision required by industry and sought by students. They now provide a wide range of programmes. In the last ten years, numbers enrolled in these colleges have more than doubled, with enrolments rising from 20,000 to 45,000. Significant capital investment is required to bring the facilities up to standard, particularly in the regional technical college sector, which will ensure their continuing relevance to the needs of the economy.
About £80 million will be allocated to the technological sector from the fund, which represents a huge capital investment. This investment will ensure that the colleges will have the capacity to contribute to the provision of skilled labour and will ensure that their facilities will be of a sufficient standard to allow them to maintain their important contribution to economic growth through education, training, research and development.
I hope the institutions in the technological sector will use the opportunity the fund provides to pioneer innovative proposals for developing their infrastructure. This should especially be the case in the area of seeking to make and secure a fund raising contribution. The projects which will be supported under this element of the fund will take some time to consider. It is crucial to ensure value for the taxpayers' investment when making such decisions.
Given the speed of technological change, it is recognised internationally that it is essential to replace and update equipment on an ongoing basis. Graduates and postgraduates undertaking training and research require resources relevant to the needs of industry. Such resources are fundamental to the success of the education system's contribution to economic growth. In the context of the emphasis on high technology skills, it is crucial that every effort is made to provide colleges with the most appropriate equipment available. In view of the importance of having leading edge technology in the colleges and having regard to the recommendation of the Science, Technology and Innovation Advisory Council — STIAC — that additional funds are required urgently, it has been decided to allocate £30 million from the technology investment fund to support a comprehensive programme of equipment renewal.
It is crucial for companies to continue to improve their existing products and production methods in order to survive and prosper. Industry must continually seek to develop new products to meet changing patterns of demand and the increasingly high expectations of consumers familiar with technological change. Most companies which do not enhance existing products or develop new ones will fail to maintain their place in the competitive market.
In Ireland research and development in third level institutions has been recognised as vital to the development of a pool of expertise capable of providing support to industry. Investment in modern, state of the art technology and research facilities is critical to the creation of such a skilled pool of researchers who have the knowledge and capacity to co-operate with industry in developing new products and enhancing existing methods of production. The availability of research and development resources will ensure that companies based in Ireland can continue to compete successfully in the global market. In addition, by providing opportunities for post-graduate research, the education system can develop the skills of individuals which can then be brought directly into employment in industry.
The allocation of £15 million from the technology investment fund will enable the provision of substantial new research facilities especially geared towards promoting the transfer of advanced technology into production. In the 1998 Estimates, the Government has provided an additional £5 million for current spending on research and development. Added to the capital spending in the fund, this represents an extremely significant move to promote this vital aspect of our education system.
In the Programme for Government we committed ourselves to promoting computer literacy throughout the school system. This objective is not based on an abstract futuristic idea of where education is going; it is informed by the essentials of educational development which have always been central to our system. The development of an information and communications technologies infrastructure in our schools will enable their use to deliver more effectively the curriculum at all levels.
It has often been overlooked by people commenting on the development of computer literacy in schools that this technology can make an immense contribution to developing basic skills in children and, in particular, numeracy, literacy and second language skills. This has been recognised by many educationalists and I want, in particular, to acknowledge the teacher skills development programmes run by the INTO.
To date Ireland has been in the third division in using technology in schools. Last Friday I launched a major initiative to bring us into the premier league. The Schools IT 2000 programme will ensure that within three years there are a minimum of 60,000 multi-media computers in schools and that at least 20,000 teachers will have received ICT training. As a first element, every school will be connected to the Internet by the end of next June. This is one of the most ambitious programmes in Europe and across the globe to transform primary and second level schools in terms of ICT. This will have a major impact on Irish education and will help to place our system at the cutting edge of international innovation in education.
Schools IT 2000 is a minimum £50 million package. The allocation of funding in the investment technology fund of £25 million will be the mechanism for funding its capital elements. This year we have allocated £3 million for teacher training and for the establishment of the national centre for technology. Up to £15 million will be allocated over three years.
I have already acknowledged publicly the generous initiative by Telecom Éireann in support of information technology in our schools. The initiative, Telecom Éireann Information Age Schools, will involve at least £10 million being spent over the next three years and is the largest ever investment in Irish schools by any body outside the Department of Education and Science. The initiative will complement Schools IT 2000. Telecom Éireann has set a powerful example for others to follow. We will ask other public utility and private sector companies to join with us in a national drive to leave a lasting legacy to the children currently in our schools and to future generations.
Section 6 outlines the consultative process which may be engaged in by my Department with other Departments. This provision gives an indication of the extent to which an investment of this magnitude crosses departmental boundaries and responsibilities. In the skills area in particular, consultation and monitoring is necessary if we are to keep abreast of emerging needs and react positively and quickly to meet new challenges. For that reason arrangements are being put in place to promote dialogue between Government, business and the education institutions in relation to the education and training needs of the economy, to develop and facilitate the forecasting of skill requirements and to provide mechanisms for the speedy implementation of decisions.
A widely representative business-education partnership forum, co-chaired by the Tánaiste, Deputy Harney, and myself, will be established. An expert group will advise on future skill needs and forecasting techniques. A high level implementation group will be established comprising the chairman of the expert group, secretaries general of appropriate Departments, the chief executive of Forfás and the chairman of the Higher Education Authority. This group will progress recommendations and monitor progress on implementation. This structure will ensure an ongoing commitment to monitoring and meeting the skill needs of industry and forge an important and enduring link between Government, business and education for the economic benefit of the country.
Section 7 provides for private donations to the fund. It lays down that donations may be made to the fund but that they may have conditions attached, provided the conditions are consistent with the purposes of the fund. I referred earlier to the importance of private donations to third level capital development. While they will be welcome, I am not expecting that direct donations to the fund will form the principal means for augmenting the State's investment. Experience would indicate that direct partnerships with institutions will be more common. The fund will provide an essential platform for institutions to attract this type of support. I will do all I can to help them with this. Section 8 provides for an annual report on the operation of the fund.
These are the main provisions of this important Bill. I have spent some time outlining to the House the areas for investment because each area is important to the development of a vibrant technological ethos within the education system which, in turn, will contribute to both the vocational needs of the students and the skill requirements of industry. In our Programme for Government we made a specific promise to grow and improve "access to employment through a major drive aimed at raising the skills profile of people, through education." With the initiatives of which this fund forms the central pillar, we will have comprehensively delivered on this promise.
It has been suggested by some that we should not put this amount of money into this area while other aspects of education badly need funding. However, if we want to have the money to invest in other areas of education, we cannot afford not to make an investment such as this. If we were to lose the opportunity to grow our economy because of a failure to invest in strategic areas, everyone would suffer. There would be less money for social services, for disadvantaged schools and to tackle serious problems like early school leaving.
I and my Department are proud of this investment fund. It is for far-sighted investments such as this that this Government will be remembered. It represents an innovative, comprehensive and historic initiative which will make a major contribution to our future. I commend the provisions of this Bill to the House.
I regret I must leave the House shortly to attend a Cabinet meeting on a minor matter which is taking place today. I apologise to Senator Jackman in particular but I will be back later.
