Third-level institutions require private funding to compete

DONATIONS from wealthy individuals are likely to become a key part of funding for third-level education, the Taoiseach has indicated.

Enda Kenny said the Government will put in place formal and transparent structures for philanthropic donations to colleges for people he believes are “willing to help”.

He was speaking at the global Irish economic forum which heard concerns from business leaders about the standards of universities.

Goldman Sachs chairman Peter Sutherland told the conference that Ireland had “deluded itself” about the standard of its third-level education.

Mr Sutherland said that Ireland “really needs” to update its education system but added that such a move will not bring short-term benefits.

“Either spend the money or we’ll lose our best students,” said Mr Sutherland.

“If they go abroad they don’t go back,” he added.

“It means hard choices for government and they have to be made. Because it is our future and it is the future of our young people.”

He said that, although it would be unpopular, the Government has to recognise there are “elite faculties in elite universities delivering the best results” who should get help “rather than spreading everything equally between every higher-level education institute in the country.”

He said: “Politically, it may be difficult, but those who deliver have to be rewarded for it and then we could create universities of real standing.”

Irish universities were this week downgraded in a global ranking, with no Irish university now in the top 100 in the world.

In response to one delegate, who said most US universities rely on private funding, the Taoiseach said: “What’s needed now is a recognition that there is assistance and there is a willingness from philanthropists to assist us in a structured way.”

There has been preliminary discussions in Government about facilitating these people: “What the Government are going to do is put in place a structure that is clear and transparent for would be philanthropists to donate to that,” said Mr Kenny.

Also speaking in a plenary discussion on economic recovery, the European Commission secretary general, Catherine Day said Ireland is making “good, steady progress” but added that “we’re not there yet”.