Business lobby group Isme has raised concerns that the Government may divert part of the National Training Fund (NTF) to third-level institutions in the upcoming budget, describing it as a “serious misjudgement”.
The group is instead calling for at least a doubling of the Skillnet funding in the upcoming budget, saying it was “farcical” that the training fund was allowed to run a €1.5 billion surplus while employers were restricted in confounding opportunities.
It also warned that diverting the funding to capital spending in the tertiary education sector would deplete the funding quickly.
The Government unveiled plans in April to access the surplus in the National Training Fund, which was set up in 2000 to support those seeking training for employment and upskilling.
READ MORE
That will require an amendment to the National Training Fund Act, which would allow the Government to divert €1.485 billion over a six-year period for the tertiary education sector.
However, businesses say they have not yet been consulted on the plans. The fund is supported through PRSI with 1 per cent of payroll spend going into the NTF through a training levy.
Why is the delivery of vital infrastructure so slow in Ireland?
That adds up to around €1 billion per annum, Isme said, and allows employers to seek co-funded training opportunities through Skillnet Ireland in a targeted manner. This year, the programme is expected to disperse about €60 million in co-funding.
“The National Training Fund was never intended to be subsumed into general Government spending on the university sector and it would be a serious miscalculation to use the fund for that purpose. SMEs (small and medium enterprises) are not paying a levy to provide funding support for universities,” said Neil McDonnell, chief executive of Isme.
“Employers will lose faith in a levy imposed on them being channelled to a purpose other than intended by law. Amending the Act to allow such diversion will not change this.”
He called for consultation with the SME sector on any such plans.
“ISME is not saying we shouldn’t spend more on third-level education. What we are saying is that any increase in university education should not be drawn from a fund dedicated by law to adult and lifelong learning,” said Mr McDonnell.
