Review of university funding may lead to rise in student fees

A major review of how Ireland’s colleges and universities are funded has been launched due to concerns over whether the already stretched system can cope with an expected surge in future demand.

Education Minister Ruairi Quinn revealed the move — which could potentially lead to student fee rises, a greater dependency on loans, or more international student places — at the publication of the first performance report into the higher education system.

Speaking at the launch yesterday, Mr Quinn said that despite financial and staffing issues, the higher education sector is still providing a quality service.

However, he said an expected surge in third-level students in the future due to a growing youth population means it is essential that new funding options are examined.

Under the plans, the independent review of the way colleges and universities are funded will examine future demographics, and the wider economic and societal benefits of a qualified population.

Strict performance deals with facilities that will see funding reduced if targets are not reached, and the possibility of whether further “efficiencies” can be made over the next five years will also be examined.

While the exact focus of the funding reforms contained within these areas of interest have not been outlined, it is understood that the review group will be allowed to examine all possibilities — including student fee rises, an increased focus on student loans, more international students, and additional grants.

An initial interim report on the matter will be provided to Mr Quinn by the end of this year, with a final document expected by the end of 2015.

The timeline — and the fact the Higher Education Authority has already concluded an unpublished report on the possibility of increasing student fees — has led to claims any controversial decisions can be delayed until after the next general election which must be held before February 2016.

However, officials stressed that no decisions have been made.

News of the funding review comes as the Higher Education Authority system performance report highlighted how colleges and universities are coping in the recession.

The 145-page document, available at www.irishexaminer.com, said graduate employment is now back to pre-crisis levels; that Irish universities are ranked within the top 1% of research institutions in the world; and that 75% of Irish employers are “satisfied” with the standard of graduates.

However, the report also found while the system is doing “very well internationally” and has responded to financial with “flexibility”, problems still exist.

They include the fact average student-staff ratios now stand at 19:1 compared to the OECD average of 15:1 or 16:1, that research is suffering because resources are diverted to lecturing; and that state funding has fallen from 76% of total income in 2008/09 to a planned 51% for 2015/16 — a drop of more than €500m.

The report also warned that student numbers will have increased by 20,000, or 10%, between 2011 and 2016 — from 196,397 to 216,732 — a jump that puts even more pressure on the sector.