Up to 10 per cent of State funding will be withheld from a third-level college unless it works to meet Government targets on skills needs, management reform and other areas, according to radical new proposals from the Higher Education Authority (HEA).
The controversial proposals - circulated to colleges this week - link State support to overall performance. The HEA hopes to have the new system in place by next year, pending consultation with the universities, the institutes of technology and the Dublin Institute of Technology (DIT).
The HEA says the accountability of the third-level sector needs to be enhanced because of the level of investment made in the National Development Plan 2007-13 which sets out various goals for the sector.
Some €13 billion will be spent on supporting the sector in this period, of which €10.5 billion will be current spending.
In its paper, the HEA says up to 10 per cent of funding could be withheld from an institution if it fails to demonstrate its contribution to meet the objectives for the sector set out in the national plan.
The universities and colleges are expected to demonstrate progress in key areas including:
• meeting specific skills needs including current priorities in information and communications technology and health;
• widening participation and increasing student and graduate numbers;
• improving the quality of learning and teaching;
• meeting specific skills needs including current priorities in ICT and health;
• advancing institutional and structural reform and
• ensuring targets on research and PhD numbers are met.
The HEA document represents a boost for UCD president Dr Hugh Brady and other university heads who have pushed a "pro-business" agenda. However, the paper may raise concerns that some colleges will tailor their programmes to meet skills needs. The fear is that this could see arts and humanities courses being downgraded. Under the HEA plans, the work of each college will be assessed in a two-phase process by two "senior international experts" who will make recommendations to the authority.
After hearing feedback from the college in question, "the assessment panel will make an overall judgement in respect of the award of performance funding . . . it will use a category-based approach (eg fail, pass, excellent). Crucially, the institution will need to show that it is achieving results that assist in attaining the national objectives."
In future, funding will be linked to performance in this regard, according to the HEA paper.
When fully implemented, the HEA says the new performance funding will make colleges more transparent and accountable. There will, it says, also be a greater focus on national objectives while respecting a college's decisions as to the best ways to achieve those objectives
The colleges have until March to respond to the proposals.