The Government recognises the importance of the higher education sector to Ireland's future economic and social development. However, the reality of the economic situation and the public expenditure corrections which had to be made in recent years presented challenges across all areas of public expenditure, including higher education. The sector has responded well to these challenges and has continued to provide opportunities for increasing numbers of students to undertake a higher education qualification.
The Report of the Expert Group on the Future Funding of Higher Education (Cassells Report) found that a capital programme of €5.5 billion is required over the next 15 years. This has informed the submission of my Department to the ongoing Capital Review process led by the Department of Public Expenditure and Reform. This submission was also informed by responses from Higher Education Institutions to a consultation process on capital requirements recently undertaken by the Higher Education Authority, with the support of my Department.
In the meantime, the Deputy will be aware that the 2016-2021 Capital Plan provides for a direct Exchequer investment of €150m in higher education, including €40m already allocated to the Grangegorman project. It also provides for €200m worth of PPP projects. These are hugely important and very welcome investments. An important focus of the funding will be on addressing infrastructural deficits that exist in the Institutes of Technology.
In 2016, my Department provided capital funding of almost €20m for Institutes of Technology, including a €10m provision for urgent minor works and equipment renewal.
The Department of Education and Skills and the Higher Education Authority are currently progressing the prioritisation of projects for the PPP programme.