Government visa policy having 'material impact' on UCC finances

The Oireachtas committee on further and higher education heard that student numbers have grown by more than 50% since 2008, but that State funding per student is 34% less now in real terms than in 2008

Student numbers at UCC have increased by 23.3% over the last eight years to 26,988.

Recent government policy affecting visa arrangements has had a “material impact” on international recruitment, costing University College Cork (UCC) an estimated €3.7m, according to the chair of its governing authority.

Sean O’Driscoll, chair of the UCC governing authority, appeared at the Oireachtas committee on further and higher education on Thursday with colleagues from across the university sector to discuss funding.

The committee heard that student numbers have grown by more than 50% since 2008, but that State funding per student is 34% less now in real terms than in 2008.

Paul Farrell, chairperson of the board of Trinity College Dublin, said it was "incumbent" on the universities to "point to the very real cliff-edge we are teetering upon" when it comes to State funding. 

"Student numbers, inflation and pay awards have outpaced funding, putting pressure on teaching, student support and research," he said. 

The Irish University Association (IUA) estimates the gap in funding is now somewhere above €250 million per annum due to unfunded pay costs and unfunded growth in student numbers. 

UCC is a major national and regional asset, Mr O'Driscoll said.  Student numbers at the university have increased by 23.3% over the last eight years to 26,988.

"However, the funding model has not kept pace with that growth." The university has become "increasingly reliant" on non-Exchequer income, philanthropy, international student recruitment and commercial income to maintain teaching, research and student services, Mr O'Driscoll said.

UCC's internationalisation strategy has helped diversify its income streams, he added. 

"However, recent Government policy developments affecting visa arrangements, while outside the control of the higher education sector, are having a material impact on recruitment from key international markets, with an estimated financial impact of €3.7 million for UCC for 2026/27." 

Labour senator and spokesperson on higher education Laura Harmon said: "It's very worrying about the visa situation, and the lack of information from government in relation to this. €3.7 m is a big impact on the college." 

Director of the Irish Universities Association Paul Johnston said government has acknowledged the gap in core funding but "not moved fast enough to address it". Budget 2027 provided only €10 million in new core funding, he added. 

UCC business school

She also asked Mr O'Driscoll about the CUBS business school and whether the university has plans to dispose of its original site. 

It emerged last year that UCC scrapped the plans for the off-campus school it initially planned to build on a Cork city centre site that cost €17m. 

The new school will be developed on the UCC campus instead at a cost of €60m. 

Mr O'Driscoll confirmed the university plans to dispose of the city centre site. "We're looking at all options for the site," he said. 

"It will be disposed of. We're looking at the possibility of student accommodation. Student accommodation is not viable in Cork at the moment," he said. 

"The capital costs associated with building it, as against the return, don't justify the investment, but we do have a plan to increase student accommodation from 1,500 units to 2,000." 

• Jess Casey, education correspondent