Dempsey rules out reintroducing college fees

The Minister for Education, Mr Dempsey, this evening ruled out reintroducing college fees to meet a funding crisis in the State's third level institutions and said the Exchequer will have to meet an ambitious set of recommendations in a report published today.

The report had recommended solving the funding shortfall by, "subject to means testing" reintroducing fees for undergraduate study. It says the policy has not had the desired effect in improving access to college to students from disadvantaged backgrounds.

It said students could pay for their fees through a loan, or graduate contribution system, based on the Australian "study now, pay later" system. Opposition parties and the Union of Students of Ireland today came out strongly against the re-introduction of fees for college.

The OECD review of Higher Education In Ireland found State investment in higher education is below the OECD average of 1.4 per cent of GDP. The Republic is ranked 14 ^thout of 26 countries for its investment per student in higher education and the review noted  that "expenditure on tertiary (higher) education has fallen as a proportion of GDP . ."

The State spends 1.3 per cent of GDP on higher education compared with 2.7 per cent of GDP in the US and South Korea, 2.5 per cent in Canada and 1.8 per cent in Finland.

And Government funding for higher education institutions has fallen over the last two years according to the OECD, dropping 4 per cent in 2003 and 10 per cent this year.

The report also notes that Government spending on elementary, primary and secondary education "is significantly below the international average". Opposition parties claimed earlier today that a lack of investment in education at these levels was restricting access to third-level for students from disadvantaged areas.

The review notes the funding crisis in Irish third-level institutions is undermining the Government's intention of developing a knowledge-based economy and workforce.

According to the OECD, Irish third-level institutions "are over dependent" on State funding and less reliance on public funding would make them more competitive. It sees student fees as a way of redressing this balance.

In the event that some form of fees are reintroduced, the OECD calls on the Government not to reduce its funding support to third-level educational institutions to ensure "a real and tangible increase in resources" for colleges. This increase would fund expansion of research and development programs and capital investment for third-level colleges.

The OECD suggests that if this extra funding was invested at postgraduate level and for research infrastructure Irish universities and institutes of education would be more attractive to fee-paying international students.

Government spending on research and development is also well below the EU and OECD averages, amounting to 0.33 per cent of GDP, less than half the EU average of 0.75 per cent.

It also suggests the formation of a new Tertiary Education Authority (TEA) which will co-ordinate funding and the development of a strategy for third-level education. This body, which will replace the HEA, would also be tasked with calculating the costs of recruiting and retaining students from disadvantaged backgrounds.

No further upgrades of Institutes of Technology (IoTs) to university status are required, according to the OECD, as both university and IoTs are required. The review recommends that IoTs be given the same freedom to initiate new academic programmes as universities.

Mr Dempsey, who commissioned the report, said he and the Government would now consider the report. However, at a press conference in Dublin the Minister ruled out reintroducing fees and said the recommendations outlines in the report would have to be funded by the tax payer.

He noted that the report recommended limiting the size of third-level governing bodies and ensuring these have greater external representation.

Mr Dempsey also said that the acknowledged deficit in R&D funding identified by the report had led to the establishment of a National Council for Tertiary Education, Research and Innovation, to be chaired by An Taoiseach.

"This report will be an invaluable tool in the development of a unified strategy for this sector into the future.

"I look forward to working constructively with the HEA, leadership in the university and Institute of Technology sectors, as well as the various other agencies and interests in the sector in considering and taking forward the agenda that the OECD have presented," he said.

Full list of OECD recommendations