Taxpayer to pay for the massive shortfall in third-level funding

Ministers will back a significant increase worth hundreds of millions of euro in additional funding each year to secure the third-level sector. Picture: Maxwells

The cost of addressing the massive shortfall in funding to third-level colleges will be borne by the taxpayer, not students or employers, under long-awaited plans to be approved by Cabinet today.

Ministers will back a significant increase worth hundreds of millions of euro in additional funding each year to secure the third-level sector, the Irish Examiner can reveal.

The plan will not see an immediate reduction in the €3,000 a year registration fee but Higher Education Minister Simon Harris is adamant he wants to reduce the cost on families in sending their children to school.

The plan will also include a major overhaul of the student grant system to include part-time students for the first time as well as a reduction in student-staff ratios, which in Ireland are well above the EU average.

Mr Harris is seeking agreement for the plan, which has been delayed for years, following approval from the European Commission, which carried out an economic evaluation.

In 2016, the Cassells report predicted a shortfall in funding of about €600m by now and of €1bn by 2030.

Senior government sources have said Mr Harris and Public Expenditure Minister Michael McGrath have agreed the amount to be invested each year.

While the two ministers have agreed the figure required for core funding, the actual allocation of any money and how much in any year is a matter to be decided on budget day.

It is understood that Mr Harris will outline to the Government how higher education should be funded by taxpayer money, and the level of additional investment required in the years ahead.

He has ruled out the use of student loans or levies on employers as a means of funding the long-standing shortfall, and has been battling for many months to get agreement from Mr McGrath to increase the commitment of the State.

In addition, Mr Harris will inform his government colleagues of the reforms he wants to see from the sector in return to ensure it is inclusive, flexible, that there are better staff to student ratios and that it is helping meet the skills needs of our country.

These reforms are controversial and are opposed by some, particularly Trinity College Dublin which is resistant to the proposal of increased government oversight of its affairs.

The proposals will see a significant increase in the amount invested by the Government in each student’s education in the years ahead.

Alongside this, the minister will also tell the Government how he wants to see the cost of education for students and families reduced and how he intends to go about this in forthcoming budgets.

“This will include a policy on the contribution fee. He also intends to overhaul the student grant system, to make it easier to access and to make sure part-time students can access supports,” sources said.

As part of his reforms, Mr Harris and successive higher education ministers will publish a cost of education paper before every budget to identify where funding is needed.

Once approved by Cabinet, the plan is to be published on Wednesday.

Fianna Fáil senator Malcolm Byrne, a former spokesman for the Higher Education Authority, warned against populist cuts to the registration fee and said the priority has to be tackling the shortfall in core funding.

“We would all love to see a cut to student fees. But if you're asking me where should the priority be when we have limited resources available... we've got to look at investing in core funding,” he said.