Dáil Éireann Debate, Wednesday - 4 July 2018
216. Deputy Thomas P. Broughan asked the Minister for Education and Skills the status of the expert group’s report, the Cassells report, on the funding of third level here; the work being undertaken in regard to the future funding of higher education expenditure; and if he will make a statement on the matter. [28986/18]
View answerThe Expert Group’s Report (Cassells Report) which was published in July 2016, clearly outlines the funding challenges in the higher education sector and offers a number of approaches and recommendations for consideration. As committed to in the Programme for Government, the report was referred to the Oireachtas Joint Committee for Education and Skills as part of the process for formulating a plan for the future of the sector.
The committee recently asked my Department to undertake an economic evaluation of the options presented in the Cassell’s report to assist their consideration of the report. I have agreed to this request and my officials are currently scoping out what will be involved as part of the evaluation and the potential timescale. Following this evaluation I look forward to receiving the Committee’s recommendations which will assist in facilitating informed decision-making for the future direction of policy and funding for higher education.
In the interim I am committed to investing in Higher Education through securing additional funding for the sector. This commitment is reflected in Budget 2017 and 2018 announcements in which the higher education sector was prioritised. In total, we will be investing more than €100m in higher education in 2018 than in 2016. We will look to continue this commitment to investment in higher education in 2019 and beyond. This additional funding will allow for targeted initiatives in higher education including skills programmes, performance and innovation funding, technological university development and apprenticeship costs in the sector. It will also allow for places to be provided for 2,100 additional students in 2018.
Furthermore as part of Budget 2018, the Government decided to raise the National Training Fund levy by 0.1% in 2018 to 0.8%, and by a further 0.1% in both 2019 and 2020 (subject to the reform of the NTF to make it more transparent and to afford employers greater opportunity to inform the NTF expenditure priorities). The increase in funding from the National Training Fund is a key strategic element of the overall funding increase for higher and further education. This measure will allow for an additional expenditure of €47.5 million this year as part of the Exchequer-Employer Funding Mechanism, bringing the total allocation for 2018 to €415m. It is estimated that the proposed increases to the levy in 2019 and 2020 will create additional fiscal space of a cumulative €104m in 2019 and €165m in 2020.
My Department and the HEA are further reforming the model by which higher education funding is allocated. An independent Expert Panel was appointed by the HEA in 2016 to review the current allocation model for funding higher education and to make recommendations on the most appropriate funding model for the future. The Review of the Allocation Model for Funding Higher Education Institutions was published on 15th January 2018. The reforms will link funding of higher education institutions to the delivery of key national priorities including better alignment to skill needs of the economy, higher levels of performance and innovation, expansion of research; particularly with enterprise partners, the promotion of STEM provision, wider skills needs, and promoting access and lifelong learning. It provides a roadmap for transitioning towards a reformed funding model that is more transparent, consistent across higher education institutions, that incentivises actions in key strategic areas, and supports improved accountability while also respecting institutional autonomy.
An implementation group has been established which is comprised of representatives from DES, HEA, DPER, THEA & IUA. The Group are progressing a number of key priority recommendations for 2018 including the new Innovation and Performance Funds, the allocation of additional funding for HEIs with multi-campus provision that meet specific criteria, and a proposed new financial penalty for serious governance breaches. This comprehensive approach is being taken in order to contribute to the development of a long-term sustainable funding model for the sector. As such, it will be important to build broad political and societal consensus on achieving the most appropriate future funding model and the Department will continue to work to that end.
