I propose to take Questions Nos. 648, 654, 655, 658 and 659 together.
The tertiary education system plays a central role in ensuring that our graduates from higher education, further education and training and from apprenticeship are equipped with the essential skills, vocational, professional and transversal skills and competencies that will equip them for success in work. These skills enhance their employability and ensure graduates have skills to adapt to diverse tasks and contribute meaningfully to the workplace and the society. With 400,000 people enrolled in learning across further and higher education, the Department is responsible for a sizeable sector. Learning outcomes have a significant influence on people's life paths. Compared to the EU and OECD averages, Ireland has high levels of higher education attainment.
The agility and flexibility of the tertiary system is underscored by responsiveness to priority industry and enterprise workforce needs under key policy initiatives that require whole-of-government efforts and collaboration such as, for example; the Action Plan for Apprenticeship; Funding the Future; the Green Skills for FET Roadmap; and the National Digital Strategy Harnessing Digital. Those concerted efforts aim to improve balance between skills demand and supply.
In November last year I welcomed the publication of the 2023 National Skills Bulletin which showed that 2.55 million persons were employed in 2022 (annual average), an increase of 158,100 persons (or 6.6%) since 2021 and 9.9% (or 228,500 persons) above 2019 levels. In addition it showed that 119,400 persons were unemployed in 2022 (annual average), a fall of 38,400 persons (or 24.3%) since 2021, and the lowest levels observed since before the 2008 financial crisis.
Budget 2024 secured an additional €65.2million in core funding under Funding the Future. This funding when combined with the €40.5million secured in Budget 2023, will increase the core funding provided under Funding the Future to €105.7million.
This additional funding will lead to increased staffing levels and enhanced support services for students. It will also expand the capabilities of our higher education institutions to deliver on priority skills needs and the further development of tertiary programmes.
The additional funding secured in the last two budgets is aligned with the intention that over a number of years, further additional core funding will be prioritised through the Estimates process, while taking account of the Government’s budgetary and fiscal stance.
While DFHERIS has responsibility for skills policy, this broader skills ecosystem informs and drives responsive, flexible forecasting, planning, and provision. The National Skills Council (NSC) and nine Regional Skills Fora (RSF), created under the National Skills Strategy, foster engagement and collaboration between relevant Government Departments and agencies, the education and training system, and enterprise. The broader skills ecosystem also encompasses entities including the Skills and Labour Market Research Unit (SLMRU, hosted in SOLAS), the Expert Group on Future Skills Needs (EGFSN, Department of Enterprise, Trade and Employment) and the National Training Fund Advisory Group (NTFAG, DFHERIS).
The role of innovation and research is also key to addressing these challenges. A whole of government approach to the implementation of Ireland’s National Research and Innovation strategy, Impact 2030, is being progressed to ensure the national research and innovation system supports key Government strategies such as the White Paper for Enterprise, the Climate Action Plan and Smart Specialisation of regions. A key focus will be on ensuring and communicating the impact of research and innovation at every level - local, regional, national and international. Research and Innovation have long been recognised as being essential to improving productivity and competitiveness. Pillar Three of Impact 2030 in particular sets out how enterprise led Research & Innovation contributes and engages with the national Research & Innovation system.
My Department is also progressing a landmark Research Bill to amalgamate the functions of Science Foundation Ireland and the Irish Research Council into a new Research Agency, to maximise the impact of the approximately €300 million of national competitive research funding which is currently being invested in this area; importantly, this represents almost 40% of Government expenditure on Research & Development. The Research and Innovation Bill 2024 completed Dáil Second Stage in January and is scheduled for Committee Stage on 28 February.
The Bill will establish a new funding agency Taighde Éireann or Research Ireland with the capacity to address the issues we as a society are facing, in particular with regard to climate change and the digital transition; and to enable us to better engage and compete at an international level, in terms of the opportunities ahead of us.
My Department does not currently produce specific projections for the number of higher education graduates. However, under the assumptions of the most recent projections of full-time enrolment in higher education, enrolments are expected to rise a further 13% over the next decade, and work is ongoing to build capacity within the system to accommodate this increase. The underlying assumptions of these projections are decided upon via an expert group and are regularly reviewed. A review of the latest projections of enrolments in higher education is scheduled to begin before year end, with work on updating the projections likely to follow.