The long-term cost of the financial crash for Ireland’s economy and society is often framed by the chronic under-investment in infrastructure – in housing, the electricity grid, water services, schools and hospitals. But it is evident in another area, too. Funding for higher education was slashed after the financial crash and – despite some steps in the right direction – has never recovered.
Students – who received their first-round CAO offers on Wednesday – and their parents may, understandably, be focused on the issue of what capitation charges they will have to pay. But there is a wider. issue, too of the quality of the education experience they will have, influenced by things like the ratio of lecturers to students and the quality of the facilities on offer.
Here there are shortcomings. And it is part of a wider story. Ireland also has work to do to improve and widen its apprenticeship programmes for those not attending universities. And so-called lifelong education – the vital ongoing retraining of the workforce – is also in need of serious upgrading. Meanwhile, vital extra investment is planned in Ireland’s creaking university research infrastructure in the National Development Plan, though we await the details.
A future funding strategy for the third level sector is in place, following a 2022 report which identified an annual shortfall in core funding of €307 million. The National Training Fund, into which employers pay contributions and which is in strong surplus, is also being tapped for higher education and skills development - and private sector funding is taking a larger role.
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But, as with other areas of vital investment, it appears that Ireland is running to try to keep up with higher demand. As plans are set for next year’s budget, many areas will have a case to put forward for more cash. There is upward pressure on wage costs, while the rising population is leading to higher demand across the board.
Amidst the noise, it is the job of Government to do two things. One is to set shorter-term priorities. And the other is to ensure that the correct decisions are made for the long term. Budget 2026 must, above all , be about investment.
In this context, higher education needs to be seen not only as a current cost but as a vital economic and social investment. Ireland’s recent growth is based, in no small part, on high education and skill levels. But there are clear skills gap in the population and other countries are now investing heavily in this area. Here, discussing this strategic issue needs to go a lot further than deciding the annual capitation charge. Or the need for more private income for universities. Education is, at heart, a public good and one where investment, as well as benefiting those who take part, has huge wider pay-off for society.
