Dáil Éireann Debate, Tuesday - 3 March 2015
111. Deputy Jonathan O'Brien asked the Minister for Education and Skills if she will provide an update on development of technological universities here, including the proposed merger between Cork Institute of Technology, County Cork and Tralee Institute of Technology, County Kerry. [9095/15]
View answerWill the Minister for Education and Skills provide an update on the development of technological universities with a particular focus on Cork Institute of Technology and Tralee Institute of Technology?
I thank Deputy O'Brien for the question. In regard to the technological university process, detailed plans were submitted to the Higher Education Authority, HEA, early last year by two consortiums of institutes of technology in Munster and in Dublin. Plans have been assessed by an international expert panel appointed by the HEA to be on a clear trajectory to meet the performance and quality criteria set down for the new status concluding stage 3 of the process. Following merger, stage 4 consists of an application to become a technological university submitted to the HEA which, following another independent assessment, will make a recommendation to the Minister on whether technological university status should be awarded.
In regard to the south east consortium, I have asked for a report on the proposed technological university for the south east, which I expect this quarter.
I thank the Minister for her reply. I am sure she is well aware there are growing concerns around the consortium in regard to the Munster technological university, MTU. They are based on a number of issues, including the cost of it, which is €6.7 million. To date, no detailed financial projections or analysis has been put forward by both institutes on how they will meet those targets. All we have heard is that they will be met through efficiencies but we do not know what those efficiencies are. I asked the HEA if it had seen any of the financial projections but it said it would not be part of the stage two process. Therefore, the HEA has not seen them and it envisages they will be part of the stage 4 process.
In regard to the process, there is a difference of opinion about the recommendations put forward by the expert panel, which I have read. A number of them relate to financing and governance issues. The HEA has been very clear in saying that those recommendations, while not binding, will form an integral part of the process of awarding technological university status to the MTU. However, in the minutes of the meetings held between the leadership of both institutes of technology and the unions, the governing bodies stated that those recommendations will not be binding and, in many cases, may not be implemented and that they are pressing ahead with the original proposal. How will that play out in stage 4?
In terms of them moving forward, as the Deputy knows, the assessment was carried out by an international independent panel. It said they were on a clear trajectory to meet the very robust performance and quality criteria set down and was of the view at that stage of the process that they were on the trajectory to reach the final step.
In regard to the financing of the proposals, the institutes were asked at the outset to state how the transition from their current status to their final destination would be financed. The Dublin and the Munster institutes said they would commit to meeting those costs within their budgets. That was part of the initial stage of the process. However, the HEA provided some funding in 2014 to give some support to the institutes involved in the mergers, including the Munster consortium. That was understood at the beginning, that is, that there would be financing involved but that would be paid for by the institutes.
The level of financing the HEA is providing is a drop in the ocean in the overall cost of €6.7 million. I understand that last year the HEA provided €200,000 to the consortium in the Munster region, which will go nowhere towards meeting the costs. The Minister has clarified that the governing bodies in Munster have said they will meet it from within their own budgets through efficiencies but nobody knows what those efficiencies are. They have not outlined what they are and that is of huge concern to the stakeholders involved.
The expert panel report makes a number of recommendations to the proposers, one of which is around financing. It states they need to be very alert to the possibility that in practice, it may not prove possible to diversify income streams as quickly as current projections imply.
They go on to talk about raising student fees and various other sources of income, including income from research.
I have an issue with what the governing bodies have stated. I will finish on this point. The unions asked whether any element of the panel's report would be embedded in the decision of the governing bodies. The governing bodies replied by stating they did not see anything in the panel's report that would cause them to change anything in their stage 2 plan. The HEA has stated these observations or recommendations are creating a significant challenge for the consortium as it aims to achieve the criteria for the merger of the institutes into a technological university. According to the HEA, the further development of such a university depends on the implementation of the observations or recommendations made by the consortium. The HEA is stating designation as a technological university depends on the implementation of the recommendations, but the governing bodies are stating they do not see anything in the recommendations that will make them deviate from the original plans. It does not weigh up. We are in a situation where we are so far down the line in terms of a merger that there is a growing possibility that technological university status may not be awarded to the Munster technological university. The cost involved is huge.
I repeat that they were considered to be on the trajectory when they were assessed in the earlier stages. The governing bodies of the institutions and the institutions are responsible for driving and moving forward this initiative.
It is Government policy.
Interested parties in any part of the country could have applied for this status. They knew exactly what was expected of them to reach the final point. They chose to engage in the process. The HEA is the intermediary in assisting them to reach that target. It is engaged in ongoing consultations with all of the consortiums. I would not be pessimistic about it as there is a determination to reach the goals. Obviously, there are issues. Issues of finance are always going to be important in this regard. The process is being managed by the governing authorities and the HEA. Obviously, we are also keeping a close watch on developments. The process is proceeding according to the criteria set down.
