The purpose of this Bill is to amend of the Scientific and Technological Education (Investment) Fund Act, 1997. The Bill contains only two sections. Section 1 provides for an increase in payments into the fund from £100 million to £130 million for the financial year 1998. This is clear evidence of the State's commitment to a substantial, visible and secure investment in high level research in the third level area. The additional £30 million, together with £20 million already in the fund related to research and development and equipment, will provide the State's capital investment in the initiative and will be supported by tax reliefs and £75 million in private funding. The current funding side of the programme will include £15 million from the existing allocation for research within my Department's budget. Added to this will be £7.5 million direct Exchequer funding and a further £7.5 million to be raised by the universities and institutes of technology.
Section 1 also broadens the scope of the Bill to include research in areas other than science and technology while maintaining the focus on these critical areas. The humanities and social sciences absolutely fit with the broad approach of this initiative. An intellectual culture which encourages and supports critical inquiry across a wide diversity of fields has clear benefits which reach well beyond narrow academic confines. Section 2 provides for an appropriate change in the short title of the Act.
The implementation of the third level research and development initiative which gives rise to this amendment Bill will also contain two further important elements. One is the establishment of a climate of collaboration between the public and private sectors and the other is the devolution of key administrative procedures to the Higher Education Authority. This new initiative will contain the following key elements: first, additional public moneys which are substantial, visible and secure; second, a solid partnership between the State and the enterprise sector; third, a £180 million investment package focused on high level research and fourth, a transparent funding mechanism to be based on the findings of an international assessment board whose membership will reflect the full range of scholarly activity in science, technology, the humanities and the social sciences.
Senators will see, therefore, that this brief amendment will have quite dramatic and beneficial effects on our third level system. In a wide ranging and stimulating debate in the Dáil on Tuesday, I described this Bill as an important route map for future investment in high level research. I also said it was a logical development to the provisions of the Scientific and Technological Education (Investment) Fund Bill passed by the House this time last year.
Developing a future strategy is of vital importance. It is not sufficient for us to look at recent successes and think that this will continue as if success is a naturally occurring phenomenon. If we are to maintain Ireland's position at the forefront of technological and business change we must put in place a mechanism for building on our strengths and successes. In an era when prediction and uniformity are no longer possible in any detail we must reconcile ourselves to the task of constantly reinvesting Ireland's competitive advantage. Investment in education is the key. Certainly proactive public policies in other areas are also vital but can anyone seriously doubt that the success of the economy is intimately bound up with our capacity to maintain a world class education system? We have no choice — there is no standing still, we either keep moving forward or we get overtaken by other economies. It is that simple.
One of the many underlying assumptions about management in the public or private sector, which has been out of date for some time, is that there is one right way to organise anything. Today, strategic planning in the education area, as in any other area, must be flexible and innovative so as to respond to rapidly changing circumstances. Today's one right way is tomorrow's obsolete policy. By placing the focus of this new initiative on high level research we are building on our recent success as an attractive location for high technology industry and consolidating this same success by developing Ireland as a centre of excellence in high level research. We have every reason to feel confident that this strategy will work.
The investment fund was a dramatic statement of the Government's commitment to looking outside the accepted paradigms for a solution to the ever present problem of funding for major initiatives in the third level sector. Senators will be aware that when it was launched just over a year ago here in the Seanad it was rightly regarded as a dramatic and innovative measure which underlined the Government's commitment continually to grow our knowledge base so as to maintain our position at the forefront of technological and business developments worldwide.
The investment fund was underpinned by three key objectives: first, we wanted to renew and modernise the infrastructure of third level institutions, particularly in the technological sector, and guarantee they would continue to produce high quality graduates; second, we wanted to develop new areas of activities in our institutions, especially where emerging skills needs had already been identified and third, we wanted to invest in promoting the innovation which continues to be so crucial in maintaining and expanding our growth.
At £250 million the fund remains the largest single capital investment introduced by any Government. A tight focus on science and technology also added greatly to its impact. Simply stated, it was the right measure for the right areas at the right time. The sectoral allocations provide clear evidence of the scope of the fund: £60 million for completion of the programme of skills development announced shortly after the Government took up office; £20 million towards a sustained programme of investment in the provision of hotel and tourism training facilities in the institutes of technology; £20 million for the vocational education sector, particularly post-leaving certificate courses and apprenticeships; £80 million for infrastructural developments, in particular the renewal and reinvigoration of the technological sector as a crucial and distinct element of our binary system; £30 million for third level equipment renewal grants, tackling in a serious and sustained way equipment renewal in our third level colleges; £15 million to reinforce the research and development capacity of third level institutions, including the transfer of technology and £25 million for the schools IT 2000 project.
These allocations have made possible the largest building programme in the history of higher education. As I explained to the Dáil on Tuesday, projects involving capital expenditure of the order of almost £90 million have already received sanction to proceed in Carlow, Cork, Dún Laoghaire, Limerick, Tallaght, Waterford and Blanchardstown Institutes of Technology. Some £70 million of the cost will be met by the fund with the balance coming from European Regional Development Fund and Exchequer sources.
In the university sector, projects totalling £30 million were sanctioned last summer. These included £4.5 million for phase two of the microcomputer building at UCD; £5 million for an extension to the O'Rahilly Building at UCC; £4.5 million for an information technology building at UCG; £3 million for an extension to the Callan Science Building at St. Patrick's, Maynooth; £5 million for an informatics building at the University of Limerick; £5 million for an information technology building at Trinity College and £3 million towards the new computer science building and library at DCU.
The investment fund is working and has met with overwhelming approval from all interested parties. Its effects will soon be visible on almost every third level campus in the country. The concept of the investment fund has been successful in another way also. The establishment of a fund, parallel and additional to the normal Estimates process, was an innovative measure. It was designed, at least in part, to send a powerful message to all parties that we were firmly committed to making a very substantial investment which would be additional to other public moneys, clearly visible to all and securely linked to the operating period of the programme. This mechanism has proven also to be very successful.
The investment fund, in its aims and its manner of operation, is an excellent model for the achievement of best practice for planned change in our education system. We must now build on this success. As Minister, I have been determined to lead the change process whenever necessary. There has been, and will be, no communication gap between my Department and the direct education providers and no unnecessary time lag between the needs of the system and my response as Minister. I am determined, whenever possible, to anticipate needs in the system and get to the problem before it impacts on our progress. This requires farsighted and innovative measures of which the investment fund is a good example.
However, excellence is a journey and not a destination. The day we think we have arrived is the day we start to slip back. The needs are clear. It is accepted by all interested parties that the task of maintaining the exceptional performance of the economy requires the availability of people with the requisite skills to meet the needs of high technology industry and also, crucially, to put in place the means of conducting high level research in key areas aimed at encouraging companies to set up in Ireland, encouraging more companies already operating in Ireland to establish research and development facilities here and establishing Ireland as a centre of excellence in high level research.
The investment fund will continue to play a pivotal role in addressing the skills needs of high technology industry. However, it is high level research which will consolidate our success. Ireland's competitive advantage is directly linked to the quality of our education system and, in the very near future, our capacity to become nothing less than a centre of excellence in high level research across a variety of disciplines will assume critical importance. This is a potential problem for tomorrow which must be addressed today.
The message coming through to me from the experts is that the best thing Government can do is give existing current and capital provisions certainty within a set programme, allocate significant additional funding and establish transparent procedures for allocating the funding which will guarantee that quality and strategic planning will be the only bases for decisions.
The third level research and development initiative is a tailor made response to the needs conveyed to me as Minister. This new initiative will redress serious structural shortcomings in regard to research and development in our third level institutions and will do so in direct partnership with the enterprise sector. I wish to again put on record my appreciation of the response of the private sector in supporting and developing this link with the State in providing the most modern facilities in our universities and colleges.
If our education system is as fundamental to our material and social well being as we know it to be, as inclusive an approach as possible towards funding and support for the system is of critical importance. It is important to note that under the provisions of sections 489 and 843 of the Taxes Consolidation Act, 1997, private funds in the order of £50 million have already been attracted into the third level system either through projects already sanctioned or currently being processed. This is real partnership in action and this new initiative will develop it further.
With such an excellent initiative in place it makes sense to place the accompanying administrative process as close as possible to the operating environment. Hence, my decision to devolve certain key procedures to the Higher Education Authority. Senators can be assured that there will be no diminution of appropriate controls over public moneys, but rather a fast tracking of procedures in line with the Government's strategic management approach to efficiency and effectiveness. These arrangements will be finalised before the end of January.
This Bill, and the initiative which follows from it, will underline the State's commitment to continuing investment in high level research, develop the concept of partnership between public and private sectors, give a massive boost to the establishment of Ireland as a centre for excellence in research across a wide range of disciplines and make possible a £180 million injection of resources into the third level sector. All this builds on past successes and will put in place the foundations of future successes. I commend the Bill to the House.