Dáil Éireann Debate, Tuesday - 2 November 2021
685. Deputy Rose Conway-Walsh asked the Minister for Further and Higher Education, Research, Innovation and Science the number of loan applications from higher education institutions that have not been approved in each year since 2016; and if he will make a statement on the matter. [52527/21]
Amharc ar fhreagraIrish Universities have autonomy to borrow in their own name within a framework to be agreed with the HEA, the Dept of Finance and Dept of Public Expenditure and Reform. Section 38 of the Universities Act, 1997 states that:
( 1) A university may borrow money by means of bank overdraft or otherwise and may guarantee or underwrite a loan taken or borrowing undertaken by a person or a body of persons.
(2) Borrowing, guaranteeing and underwriting under subsection (1) shall be in accordance with a framework which shall be agreed from time to time between the universities and An tÚdarás, following consultation by An tÚdarás with the Minister for Public Expenditure and Reform and the Minister for Finance.
The intent of the framework is as follows:
- That a university can engage in borrowing, underwriting and guaranteeing activities provided that they impose no threat to, and do not create any contingent liabilities for, the public purse.
- To ensure that the capacity of a university to function effectively is not endangered.
- That advanced approval by An tÚdarás or the ministers, of individual instances of borrowing, underwriting or guaranteeing by a university would not be required.
University borrowing arising from fully self-financed or tax financed projects approved under the Finance Acts, are not subject to the borrowing limit established under this framework and may take place provided the servicing of those borrowings has no impact on the annual income of the University.
While universities are required to submit details of their Framework and non-Framework borrowings to the HEA on an annual basis, the HEA does not have any details regarding the number of loan applications from higher education institutions that have not been approved in each year since 2016.
There is no borrowing framework in place for the Technological Universities or Institutes of Technology.
