It’s no surprise that Trinity College was keen to halt the student demonstration. They rake in approximately €17 million annually from the Book of Kells, which represents only around 4 per cent of their entire income. Yet, this is indispensable, unrestricted revenue in a constrained financial environment. Much funding generated by the state and student fees that Trinity receives is unavoidably spent on salaries and providing education. Operating the tourist facilities for the Book of Kells incurs cost too, but it remains a considerable profit-maker. Like all tertiary institutions vieing for finances, Trinity has to tap into all available revenue sources.
The narrative of strained finances in the higher education sector provides a snapshot of broader bottlenecks pressurising the Irish economy, and reveals the long-term financial burden of the 2008 crash. From housing, electricity and water provision, to public services in education and childcare, it’s a recurrent story. Investment and spending in areas that wouldn’t stir up much political controversy were dramatically reduced during the crash. As Ireland enjoyed economic revival and significant population growth, queues started appearing everywhere – for domestic properties, spaces in childcare and education, and other essentials like creches, universities, and adequate water services.
In contrast with its 2008 budget, Ireland still hasn’t raised its spending to match, making it one of the very few countries in this situation. It wasn’t unusual for Ireland, as a bailout recipient, to tighten its belt during the economic crisis, but the significant population growth and comparatively younger national age compounded the problem. In recent years, political pressure has initiated some response to these woes, but progress in certain areas, like tertiary education, seems sluggish.
In recent years, governmental decisions have been dominated by populist strategies aimed at reducing costs of gaining access to tertiary education, yet scarcely addressing the significant fiscal deficit faced by the sector. Despite the Government’s acceptance in the 2022 Funding for the Future protocol for an additional €307 million annually in core funding for the sector, merely €100 million has been dispatched within the subsequent two budgets. The Irish University Association has contended that most of this funding has been absorbed by increased public employee costs under various government agreements. The paradox of facilitating inexpensive entry into tertiary education without adequately funding the services seems faulty logic.
Considering the healthy condition of the national finances, one wonders if such hesitation on the part of the Government and Department of Education stems from suspicions that the universities will fail to uphold the changes proposed in the 2022 protocol? Or perhaps, for the majority of voters faced with a shortage of housing and childcare options, and burdened by elevated rents, this issue doesn’t rank high on their priority list, compared to the number or students per lecturer at the tertiary level or the financing of advanced research. Linda Doyle, the provost of Trinity, advised students and staff to be more vocal about this issue in a preceding letter to the last budget. The concern of the sector may also lie in the current Taoiseach, Simon Harris’s prior tenure as the minister for the tertiary sector, which seemed to focus on populist strategies such as reduced student fees rather than substantive changes.
According to research by the European University Association, Ireland, even with adjustments for inflation, remains one of the few nations where expenditure has not reached 2008 levels. With its relatively youthful populace and robust immigration flow, Ireland is also one of the select countries witnessing a strong growth in tertiary education uptake, with a 42 per cent increase between 2008 and 2021. With the trend expected to surge until approximately 2031, the fact that Ireland, a nation that positions itself as an educated, research-driven economy, has hardly maintained the sector’s funding might prove counterproductive in the future.
Amid impending changes in legislation, there is an element of uncertainty surrounding the research sphere. The proposition is for Science Foundation Ireland (SFI) to unite with the Irish Research Council, forming Research Ireland. Where this leaves us is yet to be seen, but businesses have already expressed their concern about the lack of emphasis on fostering relationships between the world of business and tertiary education, a principal objective of the SFI. The SFI has been indispensable in providing third-level institutions with research funds and in acting as a conduit to obtain funding from multinational corporations.
Ireland, a nation that markets itself as a knowledge and research-driven economy, has allowed the sector to become deprived of resources.
The current financial model for universities represents another crucial support system. Internationally, governments in nations such as France and Germany predominantly finance the tertiary sector, whereas, in the United States, heavy fees from wealthy graduates, corporations and businesses sustain universities. Ireland operates a mixed model that comprises state funding, indirect financial support from sources including the SFI for research and tuition, charges significant fees for non-EU students, as well as other revenues including student accommodation rents, investment returns, donations, etc. Hence, it’s not shocking that universities create high-cost accommodation, prioritise attracting international students, attempt to generate revenue from attractions such as the Book of Kells, and adopt various strategies to ascend on international rankings. This is merely the nature of business.
However, the hazard is that the quality of education, notably in research and postgraduate studies, starts to erode slowly. Despite steep competition for FDI from larger European nations, Ireland remains internationally reputable in tertiary education, having particular strengths in some critical areas. This precedes the need for greater long-term strategic planning and investment. Considering the robust state of exchequer finances and the significant €1.5 billion surplus in the National Training Fund, a state body funded by employers for training and education, it’s puzzling why this hasn’t happened yet. If the government doesn’t confide in the sector’s ability to deliver, then some heads need knocking together. And fast.