Dáil Éireann Debate, Tuesday - 20 September 2022
429. Deputy Matt Shanahan asked the Minister for Further and Higher Education, Research, Innovation and Science the work and timeline of the development of a borrowing framework by his Department for the technological sector since the 2019 TURN report; and if he will make a statement on the matter. [45501/22]
Amharc ar fhreagraBoth my Department and I are of the view that enabling appropriate access to finance is one of the significant requirements for the delivery by higher education institutions of purpose built student accommodation (PBSA) and my officials continue to engage with counterparts in relevant Government Departments and other relevant stakeholders including HEIs to explore potential options and approaches on the delivery of PBSA. In this context it is now anticipated that any borrowing framework for TUs would in the first instance prioritise the provision of PBSA in line with commitments in the Government's Housing for All plan.
In December 2021 the Minister for Housing, Local Government and Heritage confirmed that his Department had reviewed the Housing Finance Agency Act 1981 (as amended) and was satisfied that the legislation in place was robust enough to allow the Housing Finance Agency (HFA) to also lend, in addition to universities designated under the Universities Act 1997, to TUs, Institutes of Technology and other institutions encompassed by the definition of “Institutes of Higher Education” in the Higher Education Authority Act 1971 where such borrowing is in respect of the provision of housing accommodation for students.
This provision is being further strengthened under Section 130 of the Higher Education Authority Bill (as amended) currently advancing through the legislative process in the Houses of the Oireachtas by copper-fastening and broadening the type of institution to which the HFA can lend to with relevant consents including other education institutions not designated under the remit of the HEA but who are in receipt of core funding through the public system.
Institutions, other than traditional universities, would firstly require my consent to borrow following consultation with the Higher Education Authority. This will necessitate the establishment of an appropriate framework setting out the criteria, financial and non-financial, including governance, oversight and reporting to define the operational process through which such consent would be sought and obtained. Having passed those primary screening tests the prospective borrowing entity would then be required to pass the relevant tests, procedures and requirements of the HFA before accessing borrowing funds.
My Department is ready to work with any or all of the five TUs to support them to borrow to build PBSA. The impacts, risks and responsibilities arising from such borrowing are key considerations in this context. In addition to accessing borrowing on commercially viable and appropriate terms such as would not adversely impact the financial position of TUs themselves or the wider public finances, as stated requisite oversight, risk evaluation, project management and attendant governance and regulatory processes would also need to be established.
I am confident that there will, as appropriate, be robust and adequate systems in place to ensure any proposed borrowing is rigorously examined to protect both Exchequer funding and HEIs themselves.
