Universities must agree to a series of reforms in return for any increases in funding, Minister for Education Richard Bruton has said.

Mr Bruton conceded that universities were under funding pressure following the publication of global rankings that saw all but one of the State’s universities fall, but said “virtually every part of the public service” was experiencing similar problems.

He was “absolutely” considering reforms in return for additional funding, but also suggested that any such increases – which university heads say are vital to sustain the system – would only come about as part of a longer-term plan.

“I made it absolutely clear that any new money, whether it comes from students, employers or, indeed, it comes from the State, it has to be locked into policy tools that deliver the priorities that people would expect,” Mr Bruton said in response to calls from heads of universities and third-level teachers for more funding for their institutions.

Skills gaps

“That means meeting the skills gaps and the requirements of the war for talent in the enterprise world, meeting our needs to bring through from areas of disadvantage and disability and seeing them participate to the full, and showing that we can drive innovation to high standards.

“So I would be very keen to see a reform in the funding mechanism as well as the amount of funding so that we can leverage more impact from our higher education system.”

Heads of universities said the fall in the global rankings of Irish universities was the consequence of a decade of cutbacks to the sector, and third-level representatives warned of a crisis in the colleges caused by growing student numbers and a lack of investment.

Trinity is the only Irish university ranked in the top 100 international universities, and it and all other universities here except NUI Galway are rated lower than last year in this year's world university rankings.

Crisis

However, Mr Bruton avoided conceding there was a crisis in the sector, and spoke of the necessity for a longer-term plan for reforming the funding of higher education.

He dismissed suggestions by some university leaders yesterday that a proportion of corporation tax should be set aside exclusively for the third-level sector.

Two months ago a major report into the funding of higher education by former trade union leader Peter Cassells said the sector needed a long-term funding solution, and laid out options, including increased State investment and a student-loan system.

Mr Bruton has not yet indicated his preferences, but said he wanted to build a political consensus on the issue. He said the report would soon be discussed by the Oireachtas education committee.

However, he also indicated that higher education was only one of a number of sectors that would be seeking priority in the forthcoming budget, citing especially pressures in housing and health.