Dáil Éireann Debate, Tuesday - 24 July 2018
576. Deputy Robert Troy asked the Minister for Education and Skills his plans to introduce legislation to enable institutes of technology to borrow for the provision of student accommodation; and if he will make a statement on the matter. [34556/18]
Amharc ar fhreagraThe Institutes of Technology Act 2006 includes a provision to allow Institutes of Technology to borrow. The Technological Universities Act contains a similar provision for a borrowing framework for Technological Universities.
These are similar to the provision in the Universities Act 1997 which provides for universities to borrow within a framework agreed with the Higher Education Authority. This framework for the universities, which was agreed with my Department and the Department of Public Expenditure and Reform, has been in operation for many years.
The economic crisis in previous years and continuing constraints on Government as a result of EU fiscal rules on expenditure and debt levels has been the reason in preventing the agreement of a borrowing framework for Institutes of Technology.
Decisions in relation to the potential for Institutes of Technology to borrow must be viewed in the context of general government debt: Institutes of Technology are classified as within General Government, while Universities are classified as outside General Government. This means that any borrowing by Institutes of Technology would impact on general government debt.
As regards Technological Universities, a borrowing framework would have to be agreed between the Higher Education Authority and my Department and approved at Ministerial level, and have the consent of the Minister for Public Expenditure and Reform and Finance. No decision has been taken at this time on the borrowing ability of Technological Universities.
On the question of student accommodation generally, the National Student Accommodation Strategy seeks to ensure that an increased supply of student accommodation reaches the market. Rebuilding Ireland: Action Plan for Housing and Homelessness was published in July 2016 and laid out an action-oriented approach to addressing the national accommodation crisis. Pillar four of Rebuilding Ireland focused on the supply of rented accommodation. Actions included the implementation of affordable renting initiatives as well as encouraging build-to-rent developments to enhance the supply of student accommodation (among others).
The inclusion of student accommodation was designed to both supply housing to students and to free up space in the traditional rental sector. A target of 7,000 additional purpose built student accommodation bed spaces to be delivered by end 2019 was set. The National Student Accommodation Strategy was launched in July 2017 and set out measures designed to facilitate the supply of Purpose Built Student Accommodation (PBSA).
As of the end of Q2 2018, a total of:
- 2,990 bed spaces have been completed since the launch of Rebuilding Ireland.
- There are 7,257 bed spaces on site, and
- Planning has been granted for an additional 7,154 bed spaces
This represents a total 17,401 extra bed spaces either complete or in the planning process at the end of Q2 2018.
Recent price increases in privately run Purpose Built Student Accommodation (PBSA) complexes have given cause for concern. My colleague, the Minister of State for Higher Education, has met with representatives of the students’ unions involved.
The Minister of State for Higher Education and the Minister of State for Housing and Urban Development are currently working together to ensure that the most appropriate solution is delivered to provide predictability for students and their parents, while ensuring that the supply of new accommodation is not adversely affected.
