Higher Education reform Role and objectives of HEA The HEA are centrally involved in supporting the Minister and Department for Education and Skills in the implementation of the higher education strategy. In doing so we are very much guided by the principles and objectives outlined by the Minister in his recent speech to the sector on Thursday 22nd i.e. Recognising the importance of higher education in producing the human capital and research outputs that will underpin continued competiveness and national economic recovery Building on our favourable demographic context – our large and expanding pool of young people that is one of our biggest strategic assets, and one that many OECD countries envy Recognising Ireland operates in an international context, and that our higher education system and its institutions must compete and be successful in that international context. My colleagues from the Department for Education and Skills have already outlined the broad context for reform and the main actions for change that we are undertaking. I would like to complement that by focussing on some particular elements of the reform programme that HEA is undertaking. In particular I want to focus on our work in relation to Building the landscape of higher education reformed funding models, including performance funding sustainability. Landscape of HE The National Strategy recommended that the future HE system should consist of autonomous well governed institutions that are strategically led, and that that strategy be informed by a recognition of their particular strengths as an institution, and as an institution within a broader HE system a recognition of national policy objectives, and a commitment by the institutions to meet those objectives according to their strengths in an accountable way. Accordingly over the course of 2012, the HEA has led an intensive process of engagement with the higher education institutions aimed at better understanding their particular mission both now and into the future, to set the basis for the future higher education landscape. We have done this through our request for institutional submissions of their vision for their future role in the system, and have correlated this with extensive data collection in relation to current institutional profile and performance. We have also received international advice and assessed the institutional submissions against the stated objectives in the Hunt report. We have commissioned ESRI to advise on the future demand for HE, both student and employer led. We aim to undertake further discussions with the institutions early next year, and to provide final advice to the Minister by March 2013. Reform of the funding model This process will also be critical in setting up the further development of our funding model into the future. In considering that future development, I think it appropriate first to recognise the many strengths of the current funding model. It is I think widely recognised within and outside Ireland to be fair and impartial. Furthermore, it has been hugely successful in meeting critical state objectives. The massive expansion from roughly 36 to about 65% participation in the last 20 years has been facilitated by a funding model that has incentivised efficiency and growth. In addition, institutions have played their part by using the model to consistently manage their operations within budget. It is noteworthy I think that despite the very severe funding restrictions of recent years, and the significant rise of student numbers that all the HEA funded institutions have managed within budget. But we are conscious that we as HEA can and must do more in this space. We are particularly conscious that while our funding model is fair and impartial, and drives efficiencies, it is relatively weak on assessing strategy and performance against strategy. It is for this reason that we proposed and the National Strategy accepted an increased role for assessment of institutional strategy, and for that assessment to feed into institutional funding. We want to ensure that as institutions shape their strategy that they do so in accordance with the principles I outlined earlier i.e. that they shape their programmes and activities in line with their institutional strengths, in the context of their role as a part of a system of HE rather than as standalone, and that they take account of and deliver against national objectives in an accountable way. We have already engaged in consultation with the HEIs on how to translate this objective in to practice, and taken international advice. We expect to commence this process in 2013 and to develop it over succeeding years. Sustainability Finally, we are very concerned in HEA, as indeed is the Minister and Department to underpin the future development of Irish HE on a sustainable basis. Sustainability has a number of elements. Within HE, we need to take account of the extensive resources invested by the state and ensure that best value is delivered. Considerable achievement is evident already in shared procurement. More work needs to be done to improved shared services and this has big implications in changes to work practices and human resources strategies. We need to expand our thinking on how other forms of institutional collaborations can improve quality – in particular how co-operation between institutions can enhance quality of programmes. We already know that there is considerable fragmentation of activity in many discipline areas. We need to balance the very important benefits that fragmentation can bring in terms of increased access, particularly regional access, against considerations that fragmentation may reduce the quality of the provision. We already know at the research level the benefits that collaboration can bring – we must aim for similar outcomes at undergraduate levels and I think regional clusters of activity can be very important here. I would also stress that we see these as not limited to between higher education institutions, but also with further education providers and other relevant stakeholders. More generally there is for Ireland I think an important sustainability strategy issue here. I have mentioned before the major strategic asset we possess in the form of a growing young population. We need to remember that investment in their education has and continues to produce major returns, for the individual, for employers and for society – this is not simply another cost to be met in an annual budget but part of Ireland’s future. To put it another way, we would be aghast if we read of a company discovering huge off shore oil fields, but deciding not to exploit them because of significant up front costs. No company would do this because they would see the future benefits that would arise for years after those initial investments. So I think we should consider our young people now entering HE and who will enter in increasing numbers for the foreseeable future – not as a cost, but as our investment in our future. Thank you.