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COMMITTEE OF PUBLIC ACCOUNTS

Financial Statements 2024: National Training Fund

Summary

The committee examined the 2024 Vote for Further and Higher Education and the National Training Fund, with a focus on spending, oversight, and controls. The Comptroller and Auditor General reported a clear audit opinion but noted procurement non-compliance in the Vote and concerns about Skillnet Ireland funding under the NTF, where a protected disclosure led to a prolonged investigation and referrals to Gardaí, Revenue and the ODCE. Members also pressed the Department on the failed SUSI IT upgrade, now being replaced after about €3.8 million spent on the first project, and on the winding down of Carlow College, where the Department said it was trying to protect students, staff where possible, and the taxpayer.

John Brady An Cathaoirleach Sinn Féin

This morning, we will engage with the Department of Further and Higher Education, Research, Innovation and Science to examine its appropriation accounts for 2024.

On behalf of the committee, I welcome officials from the Department of Further and Higher Education, Research, Innovation and Science: Dr. Colm O'Reardon, Secretary General; Ms Fiona O'Byrne, assistant secretary general, further education, training, apprenticeships and skills division; Mr. Keith Moynes, assistant secretary general, higher education policy division; Mr. William Beausang, assistant secretary general, corporate services and capital division; and Ms Valerie Considine, principal officer, finance unit. We are also joined by officials who are attending in a representative capacity from Skillnet Ireland: Mr. Mark Jordan, chief executive officer, and Mr. Shane O'Keeffe, chief operating officer. From the Department of Public Expenditure, Infrastructure, Public Service Reform and Digitalisation, we have Ms Georgina Hughes-Elders, principal officer, and Mr. Jaime Marín. Finally, we are joined by officials from the Office of the Comptroller and Auditor General including Mr. Seamus McCarthy, Comptroller and Auditor General, who is a permanent witness to the committee, and Ms Paula O'Connor, deputy director of audit. They are all very welcome here this morning.

Before we begin, I wish to explain some limitations to parliamentary privilege and the practice of the Houses as regards references witnesses may make to other persons in their evidence. The evidence of witnesses physically present or who give evidence from within the parliamentary precincts is protected pursuant to both the Constitution and statute by absolute privilege.

This means they have an absolute defence against any defamation action for anything they say at the meeting. However, they are expected not to abuse this privilege, and it is my duty as Cathaoirleach to ensure this privilege is not abused. Therefore, if their statements are potentially defamatory in relation to an identifiable person or entity, they will be directed to discontinue their remarks. It is imperative that they comply with any such direction.

Witnesses are also reminded of the long-standing parliamentary practice that they should not criticise or make charges against any person or entity by name or in such a way as to make him, her or it identifiable, or otherwise engage in speech that might be regarded as damaging to the good name of the person or entity.

I now call on the Comptroller and Auditor General to deliver his opening statement.

Comment on this
Mr. Seamus McCarthy

The appropriation account for Vote 45 – Further and Higher Education, Research, Innovation and Science – records total expenditure of €3.59 billion in 2024. This was up 8% from the €3.3 billion spent in 2023.

Expenditure under the Vote is accounted for under three programmes: skills development; higher education; and research, innovation and science. Expenditure under the higher education programme amounted to €2.69 billion, including grant funding to higher education institutions transferred via the Higher Education Authority, HEA. Issues from the Vote included €1.6 billion in recurrent grant support for higher education institutions; €195 million provided for third level infrastructure projects; and €255 million to fund pension costs relating to former staff of third level institutions. Just under €364 million was spent on student support grants and related expenses. The majority of this was provided through the Student Universal Support Ireland, SUSI, scheme. The scheme is operated on behalf of the Department by Dublin City Education and Training Board. Members may recall that when the financial statements of the education and training board were presented, I drew attention to a number of matters affecting SUSI operations, including delays and project cost overruns on an IT system upgrade project.

The Vote programme for skills development involved expenditure of just over €617 million, including grant support to SOLAS, which funds further education and training activities, including apprenticeships.

A total of just under €282 million was spent under the research, innovation and science programme. The bulk of this was transferred to Science Foundation Ireland, which has since been amalgamated into Taighde Éireann.

On the receipts side, appropriations-in-aid of the Vote amounted to just under €108 million in 2024. The majority of these receipts, just over €93 million, relate to additional superannuation contributions deducted from the salaries of staff in higher education institutions, and in the Department's aegis bodies.

For 2024, the net surplus on the Vote remaining at the year's end was €16.25 million, which was liable for surrender to the Exchequer.

I issued a clear audit opinion in relation to the appropriation account and drew attention to one disclosure in the statement on internal financial control related to non-compliance with procurement rules in respect of contracts to the value of €729,000.

The National Training Fund, NTF, is a statutory departmental fund set up to support employment-focused training. The fund's resources are ring-fenced for specific statutory purposes, and unlike the Vote, any unspent balances at the end of the year are not liable for surrender to the Central Fund.

Receipts into the training fund comprise mainly the proceeds of a levy on certain employers collected through employer pay-related social insurance. The income of the fund in 2024 amounted to €1.2 billion, while payments amounted to just under €978 million. The result was a surplus for the year of €229 million, which brought the accumulated surplus in the fund to a total of €1.77 billion at the end of 2024. I reported in my 2023 annual report on how the fund surplus has grown steadily over recent years.

The fund's expenditure is divided mainly between programmes focused on those currently in employment, including apprentices, and on skills development for those looking to take up employment or to re-enter the workforce. Substantial resources flow from the fund to SOLAS and the HEA, and onwards to their respective client agencies.

Separately, the Department also provides substantial recurrent funding from the Training Fund to Skillnet Ireland, which in turn distributes grant-funding to support sectoral training networks. Skillnet Ireland, a company limited by guarantee, received public funding totalling €51 million in 2024 and €61 million in 2023.

I issued a clear audit opinion in relation to the 2024 NTF financial statements but drew attention to a disclosure in the statement on internal financial control concerning Skillnet Ireland funding.

Skillnet Ireland received a protected disclosure in September 2023 that raised concerns in relation to the operation of one of the sectoral training networks it funds. Around the same time, similar disclosures were made to the Department and to my own office. I am not the auditor of Skillnet Ireland's financial statements, but we have kept developments in relation to the protected disclosure under review in the audits of the 2023 and 2024 financial statements of the training fund.

Skillnet Ireland commissioned an independent investigation of the concerns raised in the disclosure. The investigation concluded in June 2025. By December 2025, when I was reporting on the fund's 2024 financial statements, the Department had not yet received the investigation report and had been unable to identify if any changes were required in the system of controls in place in respect of the application of NTF resources, arising from the investigation findings.

Since the financial statements were presented, the Accounting Officer has provided updates to the committee about this matter. My office will examine further the systemic control implications of the investigation findings in the context of the audit of the 2025 financial statements of the fund.

Comment on this
John Brady An Cathaoirleach Sinn Féin

I now ask the Secretary General, Dr. O'Reardon, to deliver the opening statement on behalf of the Department of Further and Higher Education, Research, Innovation and Science. As set out in the letter of invitation, he has five minutes in which to do so.

Comment on this
Dr. Colm O'Reardon

I am pleased be here this morning to assist the committee in its examination of the 2024 appropriation account for Vote 45 and the 2024 financial statements of the NTF. To assist me in answering members' questions, I am joined today by my colleagues Mr. William Beausang, assistant secretary, research and innovation, EU and international; Mr. Keith Moynes, assistant secretary, higher education policy; Ms Fiona O'Byrne, assistant secretary, skills policy and further education and training; Mr. Paul Lemass, assistant secretary, capital development; and Ms Valerie Considine, finance officer.

The Vote group of the Department comprises both the Vote and the NTF. While separate sets of annual accounts are prepared for each, they are treated as a single Vote group for budgetary purposes. Combined gross expenditure in 2024 amounted to €4.57 billion, comprising €3.6 billion under the Vote and €978 million under the NTF. This was €6 million, or 0.2%, below the revised gross budgetary allocation, which included a €40 million capital carryover from the previous year.

In October 2024, the Department received a Supplementary Estimate of €252 million to support cost-of-living measures, public sector pay and pension costs, and increased demand for further education and training provision.

The Department's Vote is structured across three programmes, each one representing a key policy priority. Programme A focuses on skills development, with expenditure of €617 million in 2024. Most of this funding is allocated to SOLAS to support the delivery of further education and training through 16 education and training boards. Programme B covers higher education, with expenditure of €2.7 billion. This includes grant funding to universities through the HEA, student supports via SUSI and investment in capital infrastructure. Programme C focuses on research, innovation and science, with expenditure of €282 million supporting science and technology programmes as well as research activity in third level institutions.

The NTF has played an important role in Ireland's skills system for over 25 years.

It was established under the National Training Fund Act 2000 and it is a dedicated fund to support training that is closely linked to employment. It is funded through a levy of 1% on certain employee earnings. The NTF funds a number of schemes delivered by Government Departments and agencies as well as business and community organisations. Its purpose is to help people to gain employment, remain in work and develop new skills as needs change. It aims to strengthen workforce capability and support economic growth by ensuring a well-skilled labour force. It achieves this through three programme areas that support skills development and training across the country. These include programmes to upskill those in employment, including apprenticeships; the provision of training to support entry and re-entry into the workforce; and the development of information systems to identify current and future needs within the economy.

Investment from the fund has grown steadily in recent years. NTF expenditure in 2026 is expected to be 94% higher than it was in 2021, demonstrating a sustained and substantial increase in funding over a short period. Income to the fund has also grown strongly, reflecting wider economic growth. While this is positive, it has resulted in an accumulated surplus. A package of €1.5 billion over six years was agreed as part of budget 2025 including €885 million in current spending and €650 million in capital investment. Earlier this year, the National Training Fund (Amendment) Act 2025 was commenced which allows for capital expenditure from the fund. In practical terms, the surplus package will support continued investment in further and higher education, apprenticeships, research and improved facilities and equipment. It is important to note that while the changes allow for capital spending, all expenditure must align with the purposes set out in the Act. It must also remain within overall Government expenditure ceilings. All expenditure from the NTF is considered in the context of the overall fiscal and budgetary framework agreed by the Government. Any increase in NTF spending without corresponding adjustments elsewhere within the Vote would have direct implications for my Department’s expenditure ceiling and for overall Government spending parameters.

Overall, the fund will continue to support steady, balanced development across the education and training system. One of the Department’s aegis bodies supported by the NTF is Skillnet Ireland. Its core role is to support the competitiveness, productivity and innovation of businesses in Ireland through enterprise-led workforce development. Skillnet Ireland operates through a networked model whereby funding is provided to contracting organisations to operate business networks. These networks bring together groups of companies on a sectoral or regional basis to identify and address their skills needs. The model is designed to be responsive to industry and operates on a cost-sharing basis combining State funding with contributions from participating enterprises. In his audit of the 2024 NTF financial statements, the Comptroller and Auditor General drew attention to a protected disclosure received by Skillnet in late 2023 which raised concerns regarding the operation of one such contracting organisation. Reviews of this entity were carried out by Skillnet Ireland including through the engagement of an independent external reviewer. The overall process was complex and protracted. These investigations ultimately identified two amounts to be returned to Skillnet Ireland - ineligible expenditure of €18,942 and an unused grant amount of €47,639. These amounts have since been repaid in full to Skillnet Ireland. Skillnet Ireland has also informed me that it has made referrals to the Garda, the Revenue Commissioners and the Office of the Director of Corporate Enforcement on these matters. We look forward to engaging with the committee and answering any questions members may have.

Comment on this
John Brady An Cathaoirleach Sinn Féin

I thank Dr. O'Reardon. Please note we will suspend the meeting at about 12.30 p.m. for a 15-minute break and resume afterwards. I will now open the floor to members. The lead speaker is Deputy Bennett who has 15 minutes. All other speakers have ten minutes. If time permits, on conclusion I will allow members back in for a short supplementary round of questions. I call Deputy Bennett.

Comment on this

I welcome everybody here today. On the investigation, were there any sanctions on Skillnet for not providing the documentation straight away when the audit was carried out?

Comment on this
Dr. Colm O'Reardon

This was a particularly complex protected disclosure. My understanding is Skillnet routinely audits the networks it works with. It had some concerns about this particular one.

Comment on this

Did it bring that to Dr. O'Reardon's attention?

Comment on this
Dr. Colm O'Reardon

It would not have brought it to my attention at that stage. I received a protected disclosure which was rather complicated. As the Deputy is aware, protected disclosures have to treated with a fair degree of sensitivity and confidentiality. We were made aware in an early warning report that it had some concerns but it took some time for this protected disclosure to be investigated and for the investigation to be finalised. We sought updates from Skillnet but on the other hand we have to be very careful-----

Comment on this

Does the Department not have terms of reference with all the organisations it gives State money to?

Comment on this
Dr. Colm O'Reardon

We do have that with Skillnet.

Comment on this

If the terms of reference were not abided by, what were the sanctions?

Comment on this
Dr. Colm O'Reardon

We reviewed our terms of reference with Skillnet and amended the text to make sure in the future we ask it to give us a sense of whether there are issues in a protected disclosure that it can update us on. When we are talking about protected disclosure we have to be very careful about protecting a whistleblower, if one is involved, or a protected person. There are limitations on what you can ask. This was a complex one. The entity involved did not co-operate with the investigation and the discloser at a certain point stopped co-operating with the investigation which would in some sense explain the lengthy period it took to conclude. I would say it took too long. There are lessons to be learned about how quickly these things can be addressed but it was a complex case and it took some time to reach a conclusion.

Comment on this

Does Dr. O'Reardon believe all of the issues have now been addressed?

Comment on this
Dr. Colm O'Reardon

I am confident insofar as I can be that any moneys due to Skillnet have been returned. The matter has been referred to the Garda and Revenue. They are the competent authorities to take it from here.

Comment on this

Why was the unredacted version of the report not provided to the committee?

Comment on this
Dr. Colm O'Reardon

I do not have an unredacted version of the report. I have a redacted version which I have seen. I have been given-----

Comment on this

Should Skillnet not be-----

Comment on this
Dr. Colm O'Reardon

I would very much prefer to share it with the committee but my legal advice is I am precluded from doing so.

Comment on this
John Brady An Cathaoirleach Sinn Féin

The Department still has not seen an unredacted version of the report.

Comment on this
Dr. Colm O'Reardon

I have seen a version of the report which I am satisfied gives me enough information to be happy that the relevant actions that needed to be taken have been taken. There is an element of redaction in the report to protect the identity of the discloser and various other elements. There is enough in the report for me to be satisfied that the right actions have been taken. The matter has been referred to the Garda, Revenue and the Office of the Director of Corporate Enforcement.

Comment on this
John Brady An Cathaoirleach Sinn Féin

I find it deeply concerning, with the investigation completed nearly a year ago, that the Department still has not had sight of a full report. That is serious.

Comment on this

It is very serious. What changes has the Department implemented in relation to Skillnet and other organisations and the Department's oversight of funding? It does not read very well that there is great oversight of funding when it does not even have the unredacted version of that report.

Comment on this
Dr. Colm O'Reardon

We have a performance delivery agreement with Skillnet. We have reviewed that and altered the text to make sure any aspect of protected disclosure which might identify any financial wrongdoing or misuse of funds is identified to us. We have provided the text of that. Skillnet has also strengthened its own internal controls and the funding agreements it reaches with the various networks it co-operates with. It is in the process of reviewing them and it has taken various actions. We have a system of performance delivery agreements with our agencies on oversight. We comply with the code for oversight of aegis bodies.

There is a particular case in respect of which we are precluded from receiving that information - it is around the protection of the discloser - and where we do not want to compromise any investigation that the Garda might be involved with.

Comment on this

Again, we feel the Department is not telling us everything about the investigation. In such circumstances, how can we have full confidence in anyone getting Government funding from the Department? How can we be sure that the funding is being spent and that there is governance and oversight?

Comment on this
Dr. Colm O'Reardon

We have been through the protected disclosures process with Skillnet. As I said, it took a long time. We are satisfied that any money that might be due to it has been repaid and that, as a result, neither Skillnet nor the State is at a loss in this circumstance. To the extent that there are issues that need to be addressed as to how Skillnet operates, it is addressing them. In terms of the report, we operate in an environment where there is legislation that protects people who make protected disclosures. We have to respect that. We have to operate within the law.

Comment on this

Does the Department have protected disclosures from any other companies that it gave money to?

Comment on this
Dr. Colm O'Reardon

I have a list. From time to time, we would expect protected disclosures to occur. If the Deputy thinks about our system, there are 12 universities and 16 ETBs, so we would expect protected disclosures to happen within those organisations, depending on what might take place at any particular time.

Comment on this

Going forward, the Department will ensure that any disclosures are reported to the Comptroller and Auditor General. This was not reported immediately. Is that correct?

Comment on this
Dr. Colm O'Reardon

We have a system of early warning reports that operates with our aegis bodies. We have agreed that we will provide those to the Office of the Comptroller and Auditor General on an ongoing basis in order that it can be aware of whatever may come up. To come back to the point, this is a particularly complex case, and one that merits referral to further authorities.

Comment on this

I have a question for Skillnet. Why were there such delays in producing the documents? Skillnet is still not producing the full documents.

Comment on this
Mr. Mark Jordan

It is worth pointing out that this was the first protected disclosure the organisation had ever received, and also that it is in relation to an organisation that is completely separate from and independent of ourselves but which we fund. We sought legal advice on how to manage the process.

Comment on this

Did Skillnet bring the matter to the Department's attention?

Comment on this
Mr. Mark Jordan

As soon as it was assigned to us in the context of our role as an “other suitable person”, we notified the Department that we had received and been assigned the protected disclosure. We spent some time with the reporter defining the scope and the terms of reference. We also engaged with Raiseaconcern. During that period, we realised that this required an independent investigation. As a result, there was a tendering process. The investigation was undertaken after that process concluded. The investigators were met with resistance such that the reporter was unable to co-operate with the investigation. The company that had been reported against worked through its legal advisers, who advised it not to participate in the investigation. Therefore, the investigators only really had information from Skillnet Ireland to work on. Once that had concluded and they were able to investigate to the best of their abilities, we worked across our legal teams to identify the process for recovering and having funds repaid that were due and held up as allegations. We then finalised the report and provided the Department with a briefing.

Comment on this

Does Skillnet Ireland have a board?

Comment on this
Mr. Mark Jordan

We do.

Comment on this

Who authorises appointments to or places people on the board?

Comment on this
Mr. Mark Jordan

We have recently revised the constitution.

Comment on this

How many people are on the board?

Comment on this
Mr. Mark Jordan

There are 13 people.

Comment on this

How are they nominated?

Comment on this
Mr. Mark Jordan

The Minister appoints all of the-----

Comment on this

The Minister appoints everybody to Skillnet. Does the board not report back to the Minister?

Comment on this
Mr. Mark Jordan

To clarify, the Minister appoints five members of the board. The other eight members are nominated through industry bodies that sit within our board.

Comment on this

The board members are delegated to the board by the Minister.

Comment on this
Mr. Mark Jordan

That is correct.

Comment on this

Did the board report to the Minister on what was happening in Skillnet?

Comment on this
Mr. Mark Jordan

Not to my knowledge. The executive was working with the Department.

Comment on this

I am going to move on from Skillnet, because I have spent quite a bit of time on that. I would like to discuss training for senior officials within the Department. Will Dr. O’Reardon give an estimation of how much that costs yearly?

Comment on this
Dr. Colm O'Reardon

For senior officials, it varies. If we describe that as the management board, assistant secretary and above, that depends on-----

Comment on this

How much is it for the Secretary General?

Comment on this
Dr. Colm O'Reardon

Over the past two years, I have done one programme that cost about €8,000 over two years, plus the expenses involved in attending the programme.

Comment on this

Who was the Secretary General in the period 2022 to 2023?

Comment on this
Dr. Colm O'Reardon

That was Mr. Jim Breslin.

Comment on this

I have a report here that he spent €65,000 on a course. Is that correct?

Comment on this
Dr. Colm O'Reardon

Yes.

Comment on this

What did that course relate to?

Comment on this
Dr. Colm O'Reardon

It was a course at Stanford. I believe it was some sort of leadership development course-----

Comment on this

Sixty-five thousand euro.

Comment on this
Dr. Colm O'Reardon

-----with an emphasis on sustainable development and-----

Comment on this

What value did the taxpayer get from that? For a start, he does not work in the Department any more.

Comment on this
Dr. Colm O'Reardon

I am limited in the information I have on this. I joined the Department as Secretary General to replace him, so I am not across the detail of what the conversation might have been had between him and-----

Comment on this

Who would have sanctioned the €65,000 to be spent on a “Be a Leader Who Matters” programme at Stanford University in the USA in 2022?

Comment on this
Dr. Colm O'Reardon

The way this would have worked is that he would have a conversation with the performance review group that reviews the performance of Secretaries General. My understanding is that he then engaged with the senior public service, which is the unit that previously existed in the Department of public expenditure and which now sits with the IPA. He agreed the course with that unit. It made a contribution to paying for it and we funded the difference, that is, an invoice came in to the Department.

Comment on this

What was the difference?

Comment on this
Dr. Colm O'Reardon

The €65,000 is what the Department paid.

Comment on this

That is what the Department paid. The course actually cost more than that.

Comment on this
Dr. Colm O'Reardon

I think the senior public service made a contribution of €10,000.

Comment on this

So it was €75,000 for the course. How long was the course?

Comment on this
Dr. Colm O'Reardon

I understand it was about six weeks.

Comment on this

I will move on. I have a question about an IT system that the Department has in place. In fact, the SUSI IT system is not actually in place because it is still not operational. Is that correct?

Comment on this
Dr. Colm O'Reardon

There are two projects. There was a project that started in 2015, before this Department was set up. It was intended to upgrade the software that supports the SUSI application system. When this Department was established, we reviewed that project and looked at the possibility of success. In 2021, the Department took the decision that the project should be concluded or brought to an end.

Comment on this

How much did the Department spend on that project?

Comment on this
Dr. Colm O'Reardon

My understanding is that the expenditure on the project was about €3.8 million-----

Comment on this

That is completely gone now. That project is null and void.

Comment on this
Dr. Colm O'Reardon

-----of which approximately €1.15 million has no enduring value. Some of the work would have a value that can be brought into subsequent development. About 115,000 people apply to SUSI every year within a very condensed period, so it is important that we have the best possible system through which people can apply.

Comment on this

Still and all, the €3.8 million is gone. That system is no good.

Comment on this
Dr. Colm O'Reardon

Of the €3.8 million, the view is that approximately €1.15 million-----

Comment on this

The €3.8 million has been spent. It is gone.

Comment on this
Dr. Colm O'Reardon

No, Deputy.

Comment on this

That system is no good.

Comment on this
Dr. Colm O'Reardon

My understanding is that of the €3.8 million, €1.15 million has no enduring value.

The balance is something that can be built on.

Comment on this

Did anybody seek assistance from any wing of government in relation to support to get an IT system that actually worked instead of wasting €3.8 million? Was there anybody from any Department?

Comment on this
Dr. Colm O'Reardon

I will ask my colleague Mr. Moynes who is more familiar with the history of this.

Comment on this

We seem to be running into this issue quite a bit, where IT systems are being purchased within Departments and then they do not work. How does this work?

Comment on this
Mr. Keith Moynes

From the files, it was clear there were a number of interventions made over the course of the programme. It was clear, when we took over the programme, that those interventions had limited likelihood of success. The project was terminated on the basis that an independent review would be done to identify what had gone wrong and what needed to be done. There were interventions made and in the current project, there has been significant improvements made, including-----

Comment on this

Before we spend that money on the current project as well, is there a computer programmer or software developer or anybody coming from that wing of government to ensure that these projects actually work and they work for what they are designed to do? Every time a Department comes in, there seems to be an issue with IT. We are spending vast amounts like €3.8 million on a system and we are now starting another system. This seems to be an ongoing issue. Is there a computer programmer of software developer who goes to these meetings when these IT systems are being discussed and requested?

Comment on this
Mr. Keith Moynes

We have assigned a project manager at principal officer level from the Government's ICT leaders panel. There is a programme manager put in and there is also an assistant principal put in. It is also being routed through the peer review.

Comment on this

Why are the systems not working then if there is an ICT manager there? Why are none of these systems working in any of the Departments and vast amounts of money being wasted?

Comment on this
Mr. Keith Moynes

I cannot speak to the other Departments, but for this project, the work that is being done now reflects what the independent review said. What the independent review said was you need to scope it out properly, you need to resource it properly and you need to do that upfront. One of the learnings from the last project that did not yield success was that it was not set up for success.

Comment on this

Was there a computer programmer or software developer -----

Comment on this
John Brady An Cathaoirleach Sinn Féin

We are way over time.

Comment on this

----- in that meeting when that project was being discussed at the start?

Comment on this
Mr. Keith Moynes

For the last one, there would have been-----

Comment on this

Mr. Moynes feels they are doing their job-----

Comment on this
John Brady An Cathaoirleach Sinn Féin

Sorry, Deputy, but you may have a chance to come back in. Mr. Moynes may make a concluding comment if he wishes.

Comment on this
Mr. Keith Moynes

A huge amount of work has been done to learn from what went wrong.

Comment on this

A huge amount of work-----

Comment on this
John Brady An Cathaoirleach Sinn Féin

I am sorry, Deputy, let Mr. Moynes finish and we have to move on then.

Comment on this
Mr. Keith Moynes

There was an independent review done and we are absolutely rigorously implementing what was learned. The key part was to get it right before going to procurement and to get all the resourcing and all the scoping done before going to procurement. If there are lessons to be learned, it is there rather than embarking on a project. That is the best likelihood of success.

Comment on this
John Brady An Cathaoirleach Sinn Féin

I know I took a little bit of Deputy Bennett's time but I was more than lenient. Deputy McGrath is next.

Comment on this

I thank everyone for being here. I am going to start with the Skillnet Ireland issue again to get a full understanding of that. The National Training Fund funds Skillnet Ireland to the tune of over €50 million per annum. I want to tease out the business networks that operate around the country. How many of these business networks are there in total?

Comment on this
Mr. Mark Jordan

We have what we would regard as 68 business networks and then we have five national schemes so we have 73 in total.

Comment on this

Can Mr. Jordan help me understand in terms of the contracting organisations versus the business networks? Does that mean there are that number of contracting organisations?

Comment on this
Mr. Mark Jordan

No. That is a good question. We have 57 industry bodies promoting these Skillnet networks and national initiatives.

Comment on this

Does that mean some contracting organisations are across a number of networks?

Comment on this
Mr. Mark Jordan

That is right, yes.

Comment on this

In terms of the one that is in focus here in the context of the allegations, was it across a number of networks or just one?

Comment on this
Mr. Mark Jordan

Part of my goal here is to try my best not to make them identifiable.

Comment on this

I understand. The question is: were they involved in one network or multiple networks?

Comment on this
Mr. Mark Jordan

It was more than one.

Comment on this

It was more than one. I know Mr. Jordan is being cautious in terms of identification but how long were they working with Skillnet?

Comment on this
Mr. Mark Jordan

They were working with Skillnet since around 2015.

Comment on this

In terms of the large number of networks and contracting organisations, this particular one highlights a complete lack of control in the operation of the overall system. Serious allegations were made and no referrals were made to An Garda Síochána, Revenue or the Office of the Director of Corporate Enforcement. How confident is Mr. Jordan that there are no other contracting organisations where similar issues could be arising on a daily basis?

Comment on this
Mr. Mark Jordan

We have a very robust and comprehensive governance process within the organisation. In this situation, some of the challenges existed around demand from industry and particularly the sector. It was a little bit akin to there being a gap in the market, but was there a market in the gap? We found that the traction with industry was not where it needed to be. We also uncovered, as the organisation looked to scale, that there were some operational challenges as well.

Comment on this

Mr. Jordan said there was strong governance and so on but the proof in the pudding shows there was not strong governance. There were serious allegations made, some of which have been upheld. Now referrals have been made to enforcement agencies such as An Garda Síochána. There was a serious breakdown of governance in this particular case.

Comment on this
Mr. Mark Jordan

Our governance process did identify issues with the organisation and we were working through those. The matters that have been referred-----

Comment on this

But a protected disclosure was made.

Comment on this
Mr. Mark Jordan

There was indeed.

Comment on this

Was it Skillnet Ireland or was it the protected disclosure that highlighted these issues?

Comment on this
Mr. Mark Jordan

In the first instance, we had identified challenges with the organisation subsequent to any protected disclosure we received.

Comment on this

Just to clarify, if there was never a disclosure, would these issues have come to light?

Comment on this
Mr. Mark Jordan

Yes, they would have come to light through our governance process.

Comment on this

Did Skillnet have a spotlight on these issues?

Comment on this
Mr. Mark Jordan

Yes. Just to clarify, the matters that have been referred onward are not necessarily related to Skillnet Ireland funding. They are more about themes around data protection and VAT.

Comment on this

How confident can we be that these issues are not replicated across the network base? We are at a stage where this particular contracting organisation effectively refused to engage. It sounds as if the relationship there was quite poor, to say the least. What does that say in terms of the other organisations? How confident can we be that there are not further issues?

Comment on this
Mr. Mark Jordan

I am very confident in our governance process, our ability to identify any challenges and the strengthening initiative we put in place. We have also been in operation for 27 years very successfully. This is really an anomaly for the organisation.

Comment on this

Does Mr. Jordan see potential criminal proceedings taking place?

Comment on this
Mr. Mark Jordan

That is a matter for the authorities to determine.

Comment on this

Were the matters referred of a serious nature?

Comment on this
Mr. Mark Jordan

They were of a nature that Skillnet Ireland was unable to investigate.

Comment on this

Effectively, they required law enforcement.

Comment on this
Mr. Mark Jordan

They required powers beyond what we have to investigate.

Comment on this

I thank Mr. Jordan for his answers and I know he is being careful in terms of the ongoing investigations.

Turning to the Department, two IT projects were mentioned. Can the Department briefly clarify the two projects?

Comment on this
Dr. Colm O'Reardon

We have over 116,000 people who apply for these grants so it is very important we have a functioning, operating grant application system that people can navigate so the maximum number of people can qualify for grants as possible. There was a project. It did not succeed. Mr. Moynes has explained some of the reasons it has not succeeded but we have to have a system, so we have had to go back and look at taking the lessons learned. We have a project which we call My SUSI which is to develop the grant application system to a modern standard, to make sure it is robust and to make sure-----

Comment on this

What stage is that system at?

Comment on this
Dr. Colm O'Reardon

We are going to tender for somebody to develop the system.

Comment on this

This is the system overseen by the City of Dublin Education and Training Board, CDETB?

Comment on this
Dr. Colm O'Reardon

It will again be the body involved. The CDETB is essentially our agent. It operates SUSI.

Comment on this

Am I correct in saying that project was initiated in 2015?

Comment on this
Dr. Colm O'Reardon

No. I am sorry if I am not being clear, but there are two projects. One was initiated in 2015 and has been cancelled. We are now in the process of initiating a subsequent project, learning the lessons from the previous one and taking it forward because we have-----

Comment on this

I want to clarify something Deputy Bennett focused on. What was the amount of money lost on the initial project?

Comment on this
Dr. Colm O'Reardon

In terms of the initial project, €3.8 million was spent. Of that, €1.15 million was deemed not to have enduring value. Some of the work done on the previous project has enduring value which can be transferred to the subsequent project, but €1.15 million is deemed not to be of any value.

Comment on this

Who determined the €1.15 million figure?

Comment on this
Dr. Colm O'Reardon

As far as I know, it was the CDETB.

Comment on this
Mr. Keith Moynes

It was in the CDETB accounts. The CDETB made an assessment of what had enduring value and what did not.

Comment on this

Was there any interrogation by the Department of the CDETB in respect of that matter? Was it just accepted at face value that it was €1.15 million as opposed to €2.5 million that was effectively wasted on the project?

Comment on this
Mr. Keith Moynes

We have to take at face value what it discloses in the accounts. We certainly have been pushing to ensure that the maximum utility was gained from the project. The piece that is deemed of no enduring value was the specific codebase and the coding that was done.

Comment on this

That part of it.

Comment on this
Mr. Keith Moynes

The other pieces were the organisational development and transformation elements. They were regarded as being of enduring value.

Comment on this

Are we now at an overall cost of €6.4 million on this?

Comment on this
Mr. Keith Moynes

If you take the two projects cumulatively, yes.

Comment on this

Where does Mr. Moynes see the overall cost landing ultimately before this system becomes operational?

Comment on this
Mr. Keith Moynes

I have to be very careful here. We are about to go to procurement, and I do not want to give a figure. When that phase is done, I am happy for us to come back to the committee but-----

Comment on this

What is budgeted for this project? Do we have a ballpark figure for the overall cost? I understand the point about the tender process, but I am asking for a ballpark figure.

Comment on this
Mr. Keith Moynes

There is a draft business case that contains a draft assessment budget. When that is finalised after the current phase of discovery, it will be what we go to procurement with. There is a budget. I would prefer to wait until the procurement is done to disclose more about that in order that we secure maximum value. There is a budget-----

Comment on this

We are €6.4 million in and Mr. Moynes is not prepared to give a figure, to the nearest €5 million, as to how much this will cost.

Comment on this
Mr. Keith Moynes

I need to be very careful, because we need to secure maximum value. I do not want the figure to be used as a target by suppliers.

Comment on this

When do we hope to have the system fully operational?

Comment on this
Mr. Keith Moynes

Subject to the discovery phase, which is what we are in at the moment, being completed successfully, we will go to procurement. We hope to have the system operational in 2029. Because of the academic year, you have to hit-----

Comment on this

In effect, this project started in 2015, albeit under a different guise. It will be operational in 2029. That is 14 years for the development of an IT system.

Comment on this
Mr. Keith Moynes

The first project did not yield a successful result so it had to be terminated. The alternative was to keep going with that. I do not think that would have been the right thing to do. By terminating-----

Comment on this

Is it not staggering that it will take 14 years to develop an IT system?

Comment on this
Mr. Keith Moynes

Yes, it is very frustrating.

Comment on this

With respect, we are not sending people to the moon here. We are developing an IT system.

Comment on this
Mr. Keith Moynes

There is a great deal of complexity to it. That is what was found. The complexity was underestimated. What is taking the time in this phase is making sure that complexity is not underestimated and it has resourcing, scope and governance. The Deputy is absolutely right. I will not sit here and say that the Secretary General and I are happy about that. We are not, of course, but there is a reality to the current project that we have to get it right. That takes time.

Comment on this

I have a final question about student fees, which were reduced to €2,500 in budget 2026. Is the Department pushing for a further permanent reduction in student contribution fees in budget 2027?

Comment on this
Dr. Colm O'Reardon

That is a political question. There is a commitment in the programme for Government, of which I am sure the Deputy is aware. I cannot really comment beyond that. The Minister has to weigh a number of matters in the Estimates process. It depends on the availability of resources. That is a policy problem which the Minister will have to address.

Comment on this

I thank the witnesses.

Comment on this

I thank all of the witnesses for being here. Deputy McGrath mentioned sending people to the moon. While the Department has a fairly wide remit, I do not think it includes sending people to the moon, but it probably has some research or science element for it in there.

Comment on this
Mr. Keith Moynes

We recently sent up a satellite.

Comment on this

I acknowledge the huge breadth of work that is done by the Department. I want to raise two issues which might be called matters arising from the committee's work. If these matters are not on the witnesses' immediate radar, they might come back to us in respect of them. The committee dealt with a discussion about the Dublin and Dún Laoghaire ETB on a mindfulness trip to Aruba in the Caribbean that cost nearly €28,000. Are the witnesses familiar with that? I am sure they are. Do they have any response?

Comment on this
Dr. Colm O'Reardon

We read the newspaper report.

Comment on this

I would say it provided the witnesses with very little mindfulness.

Comment on this
Dr. Colm O'Reardon

My understanding is that this is a European-funded programme with European rules. Part of that is there is a provision within those rules for an audit of that programme. That audit has not happened yet and it is still possible for that audit to take place and some of that funding to be withheld. The best thing is to allow that process to play out and then see what might happen on the foot of that audit.

Comment on this

I do not think anybody on this committee expects people within the Department to even have line of sight on some of those matters. What often comes up at this committee is the idea of sanctions. If I move away from the specific and into the more general, how can the Department impose sanctions on organisations that operate under its remit in areas where it feels effective public spending or good value for money is not being achieved? These sort of stories undermine the confidence people have in the overall system.

Comment on this
Dr. Colm O'Reardon

In that particular case, there is a provision for funding to be withheld. There is obviously a body for whom these people work which may have to consider what the outcome of that audit process is. On that one, that is where we will await developments. More generally speaking, we operate in a system where we have codes of governance. There is a code of practice for governance of State agencies. We apply that code. We operate on a basis that things occasionally go wrong. When they go wrong, we try to fix them or make sure they are fixed. When something is identified that requires an amendment of process, we amend that process.

Comment on this

If the Department has any written policies in this area, Dr. O'Reardon might provide them.

Comment on this
Dr. Colm O'Reardon

Yes, but that is something you have to work on continuously.

Comment on this

Of course. It is important that when there is a system in place, it catches those things that are unexpected. My second point comes from a conversation we had at one of our meetings regarding the Office of Public Works, the national children's science museum and the former UCD building in Earlsfort Terrace. I have a simple question. Has the Office of Public Works contacted Dr. O'Reardon's Department to seek for it to become the parent Department of that project?

Comment on this
Dr. Colm O'Reardon

I met the chairman on foot of what was discussed at the committee's meeting on the matter. It had a public session with the chairman of the OPW and discussed the Comptroller and Auditor General's report into this issue. The chairman asked to meet me. Subsequent to that, he wrote to me and I have written back to him. That is simply to confirm that this is not a file that transferred to us when the Department was established and we do not have a budget for it. I think the committee knows that because it has discussed the matter at great length. My role here was to confirm that this was not something that transferred to us when we were established, nor do we have a budget for it.

Comment on this

It has been suggested that any Department that might want to see this completed would be pleased to be able do it by means of someone else's budget. As well as the construction and fit-out costs, there are also potential running costs. Can I clarify there is no area in the Department's budget for any element of that?

Comment on this
Dr. Colm O'Reardon

The Deputy absolutely can do so. There is not.

Comment on this

I will move on to the My SUSI project.

Deputy McGrath asked some very interesting questions. It was stated that the alternative was to go ahead with a project that was not going to be completed. You might like to think that the alternative was to have planned it better in the beginning. Does Mr. Moynes believe there was expertise in the initial design and procurement? This is something we have seen across a range of Government Departments. There is not sufficient in-house expertise, or often when it is procured, it is not sufficient to identify what is actually needed and what a contract of this nature is. The idea of spending €1 million or €2 million on a project and not really knowing what you want or how you can get there is a significant issue and it is proving to be the case. Does Mr. Moynes believe it was the case in this situation that there was not sufficient knowledge?

Comment on this
Mr. Keith Moynes

We did an independent review and that is what it found. I do not want to speak to the knowledge but what it certainly found was that the project was not conceived correctly. The first project was conceived, in the words of the independent review, as a technical upgrade. There was an underestimation of the complexity of the challenge. It was a transformation challenge that was seen as a technical upgrade. From that flowed, in particular, resourcing and all the rest. There is an adage - I think this is what the Deputy is getting at - that projects do not go wrong; they start wrong. When we look at the current project, that is where we are particularly focused, that before we go to procurement, to make sure we have everything.

Comment on this

When was the first date that the Department was aware there was an issue with the My SUSI system?

Comment on this
Mr. Keith Moynes

The previous project was called the integrated grants processing system, IGPS. We were established in the middle of 2020 and, in the handover, it was said there was a project that was ongoing and had not been going great. What we were told at the time was that there were a lot of good-faith efforts made to remediate and a lot of interventions made.

Comment on this

The Department was informed by the City of Dublin Education and Training Board.

Comment on this
Mr. Keith Moynes

Yes. We took over responsibility for it.

Comment on this

Mr. Moynes says the Department took over responsibility for it. My understanding was the separation of the Department into two Departments was a carve-up of what was already there. Are we talking about the same people who previously-----

Comment on this
Mr. Keith Moynes

No. At my level, I did not have responsibility for that in the Department of education. It was handed over to me. I took over in 2020.

Comment on this

There was effectively a predecessor in the Department of education who was dealing with this project.

Comment on this
Mr. Keith Moynes

Yes, and a huge effort had gone into remediating the project. What the independent review found was that you were trying to fix a problem where the problem had been in the scoping way back in the day. Good efforts were made to remediate. It is a hard decision to terminate. It is not something you would want to do, so I would not be critical of anyone not terminating before that because they were working the problem. It was clear from the independent review, when it was done, that the problem was in the conception. That is really difficult. When the problem was in the conception, you can throw all the interventions because that meant it was not resourced and thought about properly. Then the supplier would have struggled to implement the complexities.

To the wider point, I would agree around thinking about the conception of these projects and doing a lot of thought. My old man always says measure twice and cut once, and I think that is true for big projects like this. You have to get the concept and the planning right.

Comment on this

Was there a chief technology officer, chief information officer or someone in CDETB who had direct responsibility for this?

Comment on this
Mr. Keith Moynes

I do not know the exact configuration. I know the Department of education assigned someone to help remediate the project.

Comment on this

Within the ETB, what department - I will not make it personal - or section was responsible for this project?

Comment on this
Mr. Keith Moynes

I do not know the case for the previous project. I do know it for the current project. We put in, on foot of advice from the Office of the Government Chief Information Officer, OGCIO, a specific programme manager to hold-----

Comment on this

The programme manager is responsible to the Department.

Comment on this
Mr. Keith Moynes

No, we took them off a panel and seconded them in. They are there to drive it and make sure that all the consultants who have that expertise are working for the benefit of the project.

Comment on this

I will move on. There was a data breach in SUSI and it resulted in a fine of €125,000. Is Mr. Moynes confident that there are sufficient checks in place to ensure that another fine of that nature is not levied?

Comment on this
Mr. Keith Moynes

Yes, it was significant. This is my recollection of this. I do not have a note on it in my file but my recollection is that this was at a time of significant disruption for SUSI but very significant efforts were put in to remediate. I can get the Deputy a note. I remember that, at the time, we got assurances about the work that had been done to strengthen data security and all that. I do not have it off the top of my head.

Comment on this

Given the time, Mr. Moynes might provide us with a note on that. I appreciate that.

Comment on this
Mr. Keith Moynes

Absolutely.

Comment on this

I thank the witnesses for coming before us. I want to focus in on what is happening in regard to Carlow College, which I assume the witnesses are aware of. There is a letter in The Irish Times today, which is quite impactful, by someone whose leaving certificate - in his own words - did not go the way he had hoped. He said:

What struck me most about the college was how personal it was. Students were not simply numbers on a register. Lecturers knew us, challenged us and took a genuine interest in how we were getting on. It was only later, when I moved on to postgraduate study elsewhere, that I realised how rare that experience had become.

Carlow College was, I think, first opened in the late 18th century. It is one of the oldest educational institutions in Ireland and now it is effectively closing down. Eighty-seven staff members are facing redundancy. There will not be any new students in Carlow College, as I understand it. Some existing students will be affected because they expected to do four-year degrees and come out with level 8 qualifications. They are now being told they will come out with level 7 and do one year less, effectively because of the wind-down of Carlow College. The assets, as I understand it, are going to be transferred to the South East Technological University, SETU. From what I can tell, effectively what has happened here is that there was a process towards a merger between Carlow College and the South East Technological University but that is not going ahead for some reason. Instead, Carlow College is being wound down, with the impacts on staff, students, the local community and so on. As a first question, is there anything I have wrong there in regard to the assessment I have got? We will start there.

Comment on this
Dr. Colm O'Reardon

The first thing to say is that Carlow College is a private college. It is not part of the State system but there are students in there who are funded under the free fees scheme. Starting where the Deputy started, our first concern has to be around students who are undertaking courses and that they are looked after, allowed to finish their studies and so on. There is obviously a staff cohort and it also comprises a building that is quite significant in the town of Carlow in terms of the way that town operates. For that building to, for example, be left empty would be a concern.

The concern has been to find a solution for Carlow College but it is a private entity. The one thing I would say, and I do not think we were ever clear on this, is that we were looking for a solution but I do not think that solution was necessarily going to be a merger, particularly because this was an entity that was experiencing significant financial difficulties. We have to try to protect the students. We would be concerned about the staff and we have to protect the taxpayer. A solution has been found that is being described as the "teach out" solution, which means that of those who are currently in Carlow, the students can continue their courses. There will be a transfer of the property and assets into SETU, and then there will be a process of trying to work through how many of the staff can be transferred into SETU. The aim here is to try to, as far as possible, protect the learners and see what can be done as far as possible for the staff. I do not think the word "merger" is one that was necessarily the only way. There was a number of different ways this could be characterised, and that is the aim.

Comment on this

Was it accurate at one stage? Dr. O'Reardon is saying it is not accurate that there was a merger ever really on the table here.

Comment on this
Dr. Colm O'Reardon

I would not say that. I think there were a number of options being looked at. It has been a looked at for a considerable period of time.

Comment on this

Let me put it this way. When did the Department become aware that a merger was not going to happen?

Comment on this
Dr. Colm O'Reardon

I would like Mr. Moynes to take the Deputy through the detail there.

Comment on this
Mr. Keith Moynes

As far back as 2022, the Department advised Carlow College - which is a private, church-run entity - that its continuing deficit position would make it very challenging for an integration into SETU to take place.

Comment on this
Mr. Keith Moynes

We advised it that if that was its preferred option, then steps should be taken to address that situation.

There has been a lot of engagement over the period. In the most recent set of intensive engagement, we were advised by Carlow College that it did not have the money to operate as a going concern and so the Department sought to engage all the stakeholders to broker a solution that would protect the students. The Department did the best deal possible for staff in the circumstances, which also had the buildings of Carlow College as an enduring asset to be used for Carlow. It was a very challenging position but we were very clear all along that the State could not nationalise the deficits of a private entity.

Comment on this

Am I right that in the planned process of winding down Carlow College, extra public money will be provided?

Comment on this
Mr. Keith Moynes

There is an asset, which is the buildings. That has a valuation attached to it. The State is essentially acquiring that asset on the basis that those funds can be used in particular to look after the staff in terms of redundancy.

Comment on this

The State has taken an active interest in this, as it should. Why have the State and the Department accepted a situation where 87 workers will be made redundant as opposed to seeing them integrated or given the choice of being integrated into SETU?

Comment on this
Dr. Colm O'Reardon

It is not necessarily the case that 87 people will be made redundant. There is potential for some of those staff to move into SETU and Mr. Moynes will talk about how will work.

Comment on this
Mr. Keith Moynes

By virtue of growth in SETU there will be opportunities for open competitions. We were challenged in terms of managing public finances in that there was an asset that had a value attached to it. Going beyond that, especially in a situation where we advised that private entity that it was operating unsustainably and if it did not bring its operations into a sustainable basis then it would be very challenging to operate any sort of merger. I think we would be at this committee, on the contrary, being asking why did we spend more than the valuation of the asset.

Comment on this

Has the Department conducted an assessment of the relative cost of the closure and funding of redundancies versus a TUPE transfer to SETU of the workers?

Comment on this
Mr. Keith Moynes

My understanding is that SETU did do that. Understandably, it would have resulted in enduring current costs that are not in scope of our Department. We do not have the budget for the enduring costs of taking on staff from the private sector and putting them on the State's books. The Minister and the Department were both exercised to ensure that students, staff and the building were looked after. If there was another solution that could have had those staff transferred then that would have been our preferred option.

In other circumstances, times and places where there has been transfers, such as St. Angela's College in Sligo, the financial operating position of the private entity was a much stronger proposition and so it was able to effectively wash its face. In this case, Carlow College has operated in a deficit position for a very substantial period and we did not see a basis for us to essentially nationalise the deficit and take on those staff.

Comment on this

There is a memorandum of understanding between SETU and Carlow College. Does it involve the Department?

Comment on this
Mr. Keith Moynes

It does not. The Department is not a party to it but we are funding the purchase, which underpins the memorandum.

Comment on this

Can the memorandum be provided to the committee?

Comment on this
Mr. Keith Moynes

I do not know but I will check.

Comment on this

Does the Department has it?

Comment on this
Mr. Keith Moynes

We have it. I do not have a problem sharing it, Deputy. Since we are not a party to it, however, I will check. I cannot see why it could not be shared but I will check. There might be a timing issue in its sharing but, in principle, I do not see a reason why it could not be shared.

Comment on this

I would be grateful if that could be done. It would be great.

In terms of the Department's assessment of this and the relationship between Carlow College and SETU, was there any point at which the Department thought that this would be a TUPE-type transfer of workers with existing rights, etc?

Comment on this
Mr. Keith Moynes

We certainly contemplated that. We were not taking a principled position against this. In any circumstances like that we must be mindful of the public finances and Exchequer resources. If there was a scenario where that could have been done, where the college had been in a surplus position and there was assurance that this would continue, then we would not have had an objection to a TUPE-type scenario.

Comment on this

When did the Department decide that this would not happen?

Comment on this
Mr. Keith Moynes

When it became clear, notwithstanding that the Department had on a very significant number of occasions advised Carlow College that if it did not get its finances in order and it became gradually more obvious. We were still open to looking at all options. It is really only in the past number of months where it became very evident that the finances were such that it was not an option, that we engaged in a process to secure the best possible deal. In fairness to Carlow College and SETU, the interests of those workers were very much to the fore. That is why the State is underpinning this with a property purchase that would allow more favourable conditions. The alternative to the intervention between the memorandum of understanding and the purchase of the site would be a disorderly wind-down now with staff losing their jobs, probably this week.

Comment on this

Earlier the committee discussed the children's science museum. Has the Department responded to the OPW's letter that asked if it was interested in being the sponsoring Department?

Comment on this
Dr. Colm O'Reardon

Yes. I wrote back to Mr. Conlon, I think earlier this week. I am happy to give my letter to the Cathaoirleach if that is of any use. I simply said a couple of things. This is not a file or an issue that came to us when the Department was set up. We have no knowledge of the history of it. We have no budget for a capital expenditure or, indeed, as Deputy McAuliffe said, we have no budget for a current expenditure. That is as much as we really know about it.

Comment on this

The answer is "No".

Comment on this
Dr. Colm O'Reardon

The answer is "No". The answer to Mr. Conlon's letter is we have no money and it is not something that is in our plans.

Comment on this

I have some questions for Skillnet. Is Skillnet still contracting with the organisation that refused to provide the documentation around the issues or did Skillnet terminate the contract?

Comment on this
Mr. Mark Jordan

We ceased all funding at the end of 2024.

Comment on this

I am glad to hear that. I assume that the contract with those contracting authorities or bodies now compels them to provide information to Skillnet in terms of investigations, etc?

Comment on this
Mr. Mark Jordan

Yes, indeed. Our funding agreement has recently been strengthened. One of the learnings we have had from this is to make sure that we can compel co-operation going forward.

Comment on this

Can I assume that the Secretary General can confirm that the only element redacted in this report is to conceal the identity of the whistleblower?

Comment on this
Dr. Colm O'Reardon

Yes, and the entity, Deputy. Yes.

Comment on this

Chair, we must respect that because we do need to protect whistleblowers. Can the Secretary General confirm that is the only redacted element?

Comment on this
Dr. Colm O'Reardon

Yes, Deputy.

Comment on this

That is the only thing and the committee needs to respect that or seek our own legal advice on it.

In terms of IT, the My SUSI project was a disaster. We, as a committee, repeatedly hear from people that they did not understand the complexity, etc. I appreciate that the witnesses are coming to us new but we hear this excuse every week. I understand that there is an ongoing IT project between EduCampus and HEAnet and a roll-out of IT services in universities. Will we see repeated issues or other IT issues with the deployment of that project or any other IT project?

Comment on this
Dr. Colm O'Reardon

EduCampus and HEAnet are now an entity that rejoices in the name of Asiera. Asiera is a company that assists third level institutions with the procurement of IT projects. At present, it is something that is under the governance of the Department of Education and Youth but we anticipate taking over that governance.

As the Deputy has referred to, I do not think there is a manner in which you can guarantee you will never encounter difficulties with these things. The integrated grants processing system, IGPS, project, is the first project. We see IGPS and My SUSI as two separate things. The net point here is that, when the Department was established, it looked at the project and took the difficult decision to shut it down. The alternative was to allow the thing to get worse. The core lesson here is that, when you reach a point where you can see that something is not going to work, you have to decide whether to protect the taxpayer by shutting it down. In this circumstance, the answer was to do so.

Comment on this

I suppose I am asking whether lessons have been learned or whether we are going to be here next year hearing that the Department did not appreciate the complexity or the scope and had to do X, Y and Z. It is becoming repetitive. Lessons are learned but nobody is ever held accountable and there are never any consequences. We are repeatedly told lessons have been learned but we do not see it.

Comment on this
Dr. Colm O'Reardon

Within the time available at this meeting, fairly detailed information has been provided about what this was, what happened and what lessons were learned. There is a report on the lessons learned. There is a whole series of documentation on ensuring those lessons feed into the next project. We may have supplied this to the committee already but I am very happy to supply a further note on the background. It is a complicated enough story but the net point is that a decision was made to end something that was failing, which I believe was the right decision, and an exercise was done to bring the lessons learned forward into the next piece. A series of changes have been made to the way in which the governance of My SUSI, the ongoing project, will operate. This includes the Department essentially becoming the co-sponsor of that project whereas previously it rested with the-----

Comment on this

I assume that every paper on lessons learned goes back to the Office of Government Procurement and the Office of the Government Chief Information Officer.

Comment on this
Dr. Colm O'Reardon

That is a good question.

Comment on this
Mr. Keith Moynes

Projects valued at more than €5 million have to go through that peer review process. On the wider point, the Deputy is absolutely right about how you embed lessons learned. As the Secretary General has said, we now co-chair this steering group. As a matter of course, we go back to the lessons learned report every couple of meetings and see whether we are doing what is set down in it.

Comment on this

I have three more things I want to get through and three minutes. With regard to Skillnet, are there any plans to make the Comptroller and Auditor General the auditor, considering that it is given €50 million in funds?

Comment on this
Dr. Colm O'Reardon

I will be brief because the Deputy is under time pressure. The amount of money that goes through Skillnet has increased very substantially in the last few years, partly on foot of the Covid pandemic. I have taken the view that we need to review the corporate form of Skillnet in its entirety to address that question. My preference is for it to be audited by the Comptroller and Auditor General, but obviously that is a matter he would have to consider.

Comment on this

Perhaps it should be put on a statutory footing.

Comment on this
Dr. Colm O'Reardon

We have asked a former Secretary General of the Department of Social Protection to review the whole corporate form and to come up with a set of proposals. We will have to take these to the Minister. I am conscious of the Deputy's time.

Comment on this

I will move on but I think we would be positively disposed towards the Comptroller and Auditor General auditing an entity that receives such sizeable funds. I will be parochial for a second. There is an issue in relation to where SOLAS is housed in Balbriggan. The building where it has been housed is now going to house a special school. My understanding is that SOLAS is going to have to move out. Does the Department have a plan for this? Will it prioritise finding a home for SOLAS?

On the National Training Fund, we really need to prioritise critical skills to produce engineers, construction workers and medical professionals, including doctors, nurses and therapists. There is a hell of a lot of money in the NTF but we are not seeing priority being given to the skilled workers we badly need if we are to meet our goals across many sectors.

Comment on this
Dr. Colm O'Reardon

On the NTF, as I have said, expenditure under the NTF comes under our expenditure ceiling, so this is essentially something we have to argue for in the Estimates, which we do. In 2025, we reached agreement on a €1.5 billion package. This will slow the rate of increase in the surplus. We have to go to Government on this as part of the Estimates process every year. We see significant demand for skills provision across the economy under practically every heading, including the area of industrial training and workplace training. It is a big policy area. The advent of AI will make it more and more salient. We are clear that there is strong demand for training in the workforce and for people preparing for the workforce. There are very wide-ranging demands. We have to make that case to Government in the Estimates process. We do that and will continue to do so. We are not short of ambition for expenditure under the NTF but the Department of public expenditure has a difficult job to do in maintaining fiscal discipline as well. Does Mr. Lemass have any update on the situation in Balbriggan?

Comment on this
Mr. Paul Lemass

The situation in Balbriggan is that the Department approved the ETB to enter into negotiations with the vendor in July 2025. Those negotiations went on for almost a year. In May 2026, SOLAS notified us that the vendor had sold a part of the site to another interested party. We have asked SOLAS and the ETB to engage with the vendor to establish precisely what part of the site is being sold and what part remains. Critically-----

Comment on this

Is Mr. Lemass not thinking about the college in Swords?

Comment on this
Mr. Paul Lemass

I am sorry. I had assumed that was the one the Deputy was asking about.

Comment on this

No, I am asking about the SOLAS adult education facility at Castlelands in Balbriggan.

Comment on this
Mr. Paul Lemass

I am sorry. I am not familiar with that one.

Comment on this

The Secretary General might come back to me. This is a priority for me. We need the special school but we also need SOLAS adult education courses to continue to run in a suitable environment.

Comment on this
Dr. Colm O'Reardon

I absolutely accept that. We are conscious that the special school situation relates to a particularly critical need. Where we can, we try to facilitate our colleagues in the Department of education because we see this as a particularly sensitive issue. I will absolutely come back to the Deputy on the Balbriggan issue.

Comment on this

I will come back to the My SUSI IT project. I am sitting here listening to statements about lessons that have been learned and so on. This is not directly a reflection on the Department, although it is a contributor to the issue. Week in and week out, we hear about massive wastes of public money. We are 11 years on and have spent €6.4 million. We are at the business case stage rather than the procurement stage. It is hoped to have it operational by 2029. There has already been an independent review, although we do not know how much that cost. Despite all this, the Secretary General still cannot tell us today what the overall cost of this project might be. Has the Minister sanctioned a bottomless pit for this project? Have we learned nothing about governance? The Secretary General is sitting here in front of the Committee of Public Accounts and has admitted that €1.5 million of the €6.4 million spent has no enduring value but he cannot give us any definitive sight of what this might cost and when it will be implemented.

Comment on this
Dr. Colm O'Reardon

Reflecting on some of the comments that Deputies have made, these are inherently risky and difficult projects. To be frank, if I was simply thinking about my own best interests, I would steer clear of all of these kinds of things because they are very risky and difficult and present these kinds of issues. However, we have to provide a system for people to apply for these grants. It is a very sensitive period in people's lives when they are applying for third level. They are wondering whether they are going to be able to get a grant, whether they will be able to navigate the system and whether they are going to be able to get all of the information needed. We have worked very hard to make it as easy as we can but we need a system that will work for students who are applying for grants. I do not see us as having any other option.

Comment on this

I accept that. What I am asking is how we can learn from this going forward. Dr. O'Reardon's contribution on this is probably invaluable to the work of the committee. As I have said, we see a common trend across all Government Departments in here week in and week out. The Secretary General himself has said it is an exceptionally risky avenue to go down.

Has that been relayed back to the Government directly? Is it listening and does it hear when that is said?

Comment on this
Dr. Colm O'Reardon

To be fair to Ministers, they should be able to expect the public service to deliver IT projects. I am not sure I would bring the Minister into this. There is an element-----

Comment on this

Who is accountable in the public service? If it is not the Minister and not the Government, who is accountable?

Comment on this
Dr. Colm O'Reardon

We are trying to be as accountable as we possibly can. The Department and the Accounting Officer are accountable to the committee. The difficulty is that these things are inherently risky. We do our best to take on board whatever we have learned. Mr. Moynes has said that if you go back to the 2015 project, the lesson is to try to get the thing right at the get-go and have the right governance in place so you can pick up the project early. I was not in the Department, but I think the right decision was made. If a thing is not working, then stop it.

One of the Deputies raised the issue of skills, including IT skills, in government. We struggle to recruit people at the pay levels we have. I am not suggesting anything by that but getting the right skills in is an issue for us and that is something we work on continuously. However, it is a continuous battle. On this, we have done everything we possibly can to scope it properly and get the governance right. We have taken ownership of the governance, so we will have shared ownership with the ETB. However, these things still entail an element of risk.

Comment on this

I need to move on. Across the board, we see shortages of professionals in vital roles. We are potentially not providing enough third level places for people to train in these roles and upskill themselves. I will be a bit parochial and highlight dentists. My constituency office is constantly contacted by people who are signed up to the medical card scheme but cannot find a dentist to provide that care. The Irish Dental Association said recently in another committee something that it had been repeating for years, namely:

Ireland also faces a severe shortage of dental professionals. We estimate that we need at least 500 additional dentists across the public and private sectors to meet demand. We welcome the opening of the new RCSI dental school in Dublin, which will provide a very welcome increase in graduate capacity. The two dental schools in UCC and Trinity College graduate about 90 dentists annually but 50% are non-EEA students, most of whom return home, typically to Canada and the Far East and do not begin practice here in Ireland.

The Royal College of Surgeons in Ireland, RCSI, school of dentistry will graduate 75 new dentists after it opens next year. At current rates, without any increase in population, it will take a decade to catch up with what is needed. Dentists are probably just one example. I am sure this applies across many fields. How does the Department prioritise its spending and focus on delivering college places? This has to be asked. Is it to get as many international students as possible because they pay? Does it have a proper plan to address college placements for vital fields like dentistry and other areas for which we are nowhere near capacity?

Comment on this
Dr. Colm O'Reardon

There are skills shortages across a range of professions, including dentistry, medical, nursing and a number of other allied health professions, particularly in areas that affect services for people with disabilities. The Government has been clear with us that we are being asked to take action to expand provision in a number of those areas. We do that through a process we call expressions of interest. We have gone out several times to the university system to ask it to come back to us with proposals on how to expand those types of placement. I will ask Mr. Moynes to talk about where we are with those. We have done a number of them and have one in process.

Comment on this
Mr. Keith Moynes

Across medicine, pharmacy, disabilities and allied health, we have had between 40% and 100% increases in new entrant places. Those are new places that have been created. On dentistry, the Deputy mentioned the RCSI. We are engaging with UCC as well on those plans. We have one active and in consideration at the moment about increasing therapies. The Government is spending a lot of money and putting a lot of effort into identifying in a targeted way areas where we need to increase the skills provision exactly as the Deputy says.

Comment on this

Does Mr. Moynes accept that the experts in this field, in this example the Irish Dental Association, are giving us figures and statistics on what they need to meet the demand? I have outlined as starkly as I can that without any increase in population whatsoever, which is not going to happen, we are looking at a minimum of ten years to meet the current demand. Without spending money to identify the need, is the Department listening to the fields? Is it listening to the likes of the Irish Dental Association?

Comment on this
Mr. Keith Moynes

Absolutely. This is mediated through the Departments, which engage with their sectoral bodies. We do a prioritisation exercise that reflects the competing priorities across multiple healthcare and other professions, including therapies, disabilities and children's mental health services. We go out to the system and ask what it is possible to provide. There is complexity to that. There are placement and funding constraints. Within all of those constraints, we absolutely listen to what is required. As the Deputy says, the demographics in the country mean that these pressures are going to increase. It is about continuously working to increase. The places have significantly increased across a range of professions in the past few years.

Comment on this
Dr. Colm O'Reardon

We may be able to get the Deputy a table on that and on what we have done but there are two factors worth bearing in mind. One factor is that we have to look at new models. I would say that the RCSI model is training people to be community dentists. If the Deputy ever wants to look at it, it is a fascinating course and an excellent facility. It is up and running at the moment. We are looking at new models, particularly in the case of technological universities where we are setting up vet schools and pharmacy.

The second factor is that the rate limiting factor for us is often training places. If you are talking about a medical professional, the person has to train in a hospital or other healthcare or service setting. It can be really difficult to get the training places. That is one of the big problems we face. Funding is obviously always a problem, but it is something we have no difficulty prioritising.

Comment on this

I come back to the situation with Carlow College. Was an independent valuation conducted on the Carlow College land? What are the exact terms of agreement on transferring that asset over to SETU?

Comment on this
Dr. Colm O'Reardon

There was an independent valuation, otherwise we would not be able to progress this. We have to be satisfied that the value of that asset essentially transferring into State ownership in the form of SETU merits any expenditure that might be spent on redundancies or other investment.

I apologise, but what was the second part of the question?

Comment on this

It was about the exact terms of the agreement. Are those published?

Comment on this
Dr. Colm O'Reardon

I think we said we would try to get those for the committee if we were allowed to and I do not see why we would not. We will certainly give that to the committee if we can.

Comment on this

It would be helpful if the witness could.

Comment on this
John Brady An Cathaoirleach Sinn Féin

We will now take a short break.

Comment on this

I thank the witnesses. In the whole area of college fees it would be fair to say there has been uncertainty and some degree of mixed messaging on whether there is going to be enough money in the kitty to ensure that parents or students themselves will not have to pay full allocation or that the subsidies for registration fees will remain. What does Dr. O'Reardon see as the trade-offs coming into the next budgetary cycle between the expenditures the Department currently has and future expenditures? I notice the increase in the number of students enrolling in the system. What does Dr. O'Reardon see as the trade-offs on these fiscal questions?

Comment on this
Dr. Colm O'Reardon

There are always trade-offs. There is a commitment in the programme for Government to try to reduce the student contribution. There are always going to be trade-offs. This is an issue the Minister will have to address in the context of the Estimates campaign that happens every year.

Government has fiscal parameters. We have to work within our expenditure ceiling, or whatever expenditure ceiling is given to us in the context of the budget. It is something the Minister has to seek to prioritise. There is a range of issues in the Department where we look at core funding for universities and paying pensions throughout the whole system, and funding for apprenticeships and further education and training. Across all of the Vote, as we set out at the beginning, there is a wide range of demands, and every Minister in the context of every Estimates campaign has to weigh up those balances.

There is always an element of working out what it is going to require to keep services, so what we would previously have called existing level of service, ELS, is generally to try to work out what it would cost on a no-policy-change basis to keep the system going as it is. We look at what priorities there might be for new developments. All those things are generally played out in the Estimates campaign. The Minister has to engage with Department of public expenditure and the Minister for public expenditure and those kinds of trade-offs and political decisions have to be made.

Comment on this

In practical terms, will Dr. O'Reardon give us a bit of insight? How does that work between Dr. O'Reardon, the Secretary General and Accounting Officer for the Department, and the Minister directing Government policy? How does that work in terms of an issue that is significant or perhaps politically controversial, whatever way you want to describe it? Obviously on a day-to-day operational basis, there are all Dr. O'Reardon's officials. There will be a new Minister in the future. There was a Minister before this one. Dr. O'Reardon is potentially dealing with the demand side a lot of the time, third level institutions and all of the various programmes which are funded. How does that work in terms of the differences between Dr. O'Reardon’s direction and those of the Minister?

Comment on this
Dr. Colm O'Reardon

These are decisions for Ministers and Government. Our job is to support the Minister and give him the best available information. We tend to think about the ELS and what it will cost to run on a no-policy-change basis into 2027. We do our best to look at the kinds of components of that and what kind of pay and numbers costs are likely to arise in the context of going into 2027.

At this stage of the year, we are typically looking at what the existing levels of service, ELS, situation is. We will engage with our colleagues in the Department of public expenditure around trying to understand any pressures which are emerging in the system and then we will talk to the Minister about any priorities for developments or new initiatives he might have.

The Deputy referred particularly to the issue of student contributions. The Minister will talk to us about the issues he wants to develop, we will look at costings and then he will make an Estimates bid into the Department of public expenditure. Typically, that is something that usually happens in September in the run in to the budget. Usually, there are a number of political-level engagements and our job is to support our Minister, just as our colleagues in the Department of public expenditure support their Minister in that engagement. Ultimately, the Minister for public expenditure and reform will make a decision around what he is prepared to agree.

Comment on this

One thing that has been pledged – I suppose it is a new spend, but I do not know how much – is the establishment of a critical skills observatory in the whole area of AI. Where is that at as an entity?

Comment on this
Dr. Colm O'Reardon

There is a little potential for confusion. We are establishing a national skills observatory, which will include looking at skills needs. Other Deputies have raised issues around a number of different skills areas. We are trying to get to a point where we are improving our analysis of skills needs across the economy. That is essentially building out a unit that exists in SOLAS and expanding its capacity. We are just about to be in recruitment there. The Department of Enterprise, Tourism and Employment is leading out on the AI observatory but there is a separate, wider issue as regards AI. Our particular focus there is on skills. The methodologies that are available to us now to examine supply and demand of skills have improved quite significantly in recent years, so we are trying to incorporate that within the unit in SOLAS to make sure that we are using the most advanced methods available to us.

Comment on this

What is the unit that currently exists in SOLAS?

Comment on this
Dr. Colm O'Reardon

I will ask my colleague to fill in the Deputy.

Comment on this
Ms Fiona O'Byrne

It is called the skills and labour market research unit, the SLMRU. The national skills observatory will evolve out of that and build on that unit.

Comment on this

Will it get more money than it currently has?

Comment on this
Ms Fiona O'Byrne

The intent is to expand the money and staffing of that unit.

Comment on this

Will it be a stand-alone separate entity?

Comment on this
Ms Fiona O'Byrne

No, it will form part of SOLAS.

Comment on this

What kind of information will this new entity give that the current one does not?

Comment on this
Ms Fiona O'Byrne

As the Secretary General said, it is about being more sophisticated in the analysis that is there. The big publication at the moment from the SLMRU is the national skills bulletin, which is published annually. There is lots of very useful and helpful data. We would like to move towards a more dynamic system. There are lots of tools around scraping LinkedIn or Indeed, for example, and understanding more about what is happening in the space of skills and how they are evolving. There is also a piece around bringing together analysis done by other entities such as the Central Statistics Office, CSO, and the Economic and Social Research Institute, ESRI, and bringing those data sources together to be more impactful.

Comment on this

Is there a firm date for when the national skills observatory will be up and running?

Comment on this
Ms Fiona O'Byrne

We do not have a date yet. SOLAS is about to kick off the recruitment process and would expect people in place by the end of the year. That is what we are looking at at the moment.

Comment on this

I will raise the Skillnet governance issue briefly. I know it was teased out before I was here. I am familiar with the timelines of the investigations, the protected disclosures and what has been said in relation to ongoing live investigations that the Secretary General needs to be careful about. I fully get all of that. However, in hindsight, as the investigation evolved and things were emerging, were there moments when funding should have been brought to a halt? Looking back, have lessons been learned about how governance investigations are done and how funding decisions are made?

Comment on this
Dr. Colm O'Reardon

The whole process should have been done more quickly and Skillnet has acknowledged that. It has also made the point that it ceased funding to the entity concerned at, I believe, the end of 2024. Its relationship with that entity has been wrapped up and no more money is due from that entity to Skillnet. Essentially, the moneys concerned have been covered.

Going back to the point, I think this was a pretty complex protected disclosure. We have a tendency to be biased in favour of protecting the discloser and protecting the whistleblower, so the process can become quite elaborate. This was the first protected disclosure that Skillnet had experienced. The lesson to learn from that is these things need to be expedited in terms of how they move on. In this case, the relationship was brought to an end and any moneys were recovered.

Comment on this

The Secretary General of the Department of public expenditure and reform was here last week. He took the view that he did not see a value-for-money case in the national children’s science centre. That is how I interpreted what he said, at least. The OPW wrote to three Departments, including further and higher education. Dr. O’Reardon has already given some response to that or the letter has now been responded to.

Comment on this
Dr. Colm O'Reardon

Yes.

Comment on this

Does the Dr. O’Reardon share the view on the value-for-money piece?

Comment on this
Dr. Colm O'Reardon

We have no relationship with this project. It did not come to us when the Department was set up. I do not have a view on the merits of the project. I met the OPW chairman on foot of his meeting with this committee. He then wrote to me and I wrote back to him. What I said was we did not have a relationship with this project, it did not come to us when the Department was set up, and we did not have a budget for capital or current. I do not have a view on the merits of the project per se as to whether it is a good thing. What I would say is that, on foot of the issues set out in the Comptroller and Auditor General’s report, if somebody takes this on, they would have significant governance and value-for-money issues that they would have to think about. That is not me saying there is a value-for-money issue with the project per se or whether it is a good thing or a bad thing, but given the history of it and the legalistic nature of it, as an Accounting Officer you would have a set of concerns that you would have to work through because of the nature of where it is now positioned.

Comment on this

Are those accounting concerns directly arising from the legalistic nature of the process insurmountable?

Comment on this
Dr. Colm O'Reardon

I am not close enough to know. However, the Deputy is right. Again, I am only speaking about what I read in the Comptroller and Auditor General’s report, but it was a very comprehensive document. I had a brief conversation with Mr. Conlon about it. That it is in such a legalistic position would create a difficulty. It is a very unusual place to find yourself. Most of our aegis bodies we have relationships with are not in that kind of legalistic situation. That would create a set of concerns from an Accounting Officer perspective.

Comment on this

What would have to take place to overcome those concerns? Would it have to remove itself from the legalistic process and almost start afresh with an understanding? Is there some sort of parallel process to the legalistic process that it could engage in that might then put it into a normal type of process like those of partners that make applications every day of the week? Would that make it less of a risk from an Accounting Officer perspective?

Comment on this
Dr. Colm O'Reardon

Again, not knowing the details but in the spirit in which the Deputy asked the question, I would have thought that would make matters much easier. If you have to have a dialogue with a body like that where you are having to communicate between lawyers, that will make the transaction cost quite difficult and presents the Accounting Officer with a number of emerging problems. The Deputy's suggestion would probably be of assistance.

Comment on this
John Brady An Cathaoirleach Sinn Féin

I have a number of questions. Aruba was raised earlier.

It is an issue I raised several weeks ago on foot of a media report. It is quite concerning. It does not represent value for money. Does the Department think it represents value for money?

Comment on this
Dr. Colm O'Reardon

No.

Comment on this
John Brady An Cathaoirleach Sinn Féin

Would the Secretary General be authorising anyone in the Department to go on that mindfulness exercise to Aruba?

Comment on this
Dr. Colm O'Reardon

I think we could safely say that would not be at the top of my list.

Comment on this
John Brady An Cathaoirleach Sinn Féin

Does the Secretary General think it represents value for money?

Comment on this
Dr. Colm O'Reardon

I honestly do not know. It does not strike me as something I would send a civil servant on. I will say one thing, if the Cathaoirleach does not mind. I am sure he will agree with me on this. Erasmus+ is a very good programme and it sends a lot of people on very good things.

Comment on this
John Brady An Cathaoirleach Sinn Féin

I am not questioning that. I just want to establish the situation. From my perspective, it is not value for money. The committee has written to the Dublin and Dún Laoghaire Education and Training Board, DDLETB. We are due to get a response from the board regarding our concerns. Has the Department written to DDLETB to raise any concerns?

Comment on this
Dr. Colm O'Reardon

I might just ask Mr. Beausang to come in on this point. Léargas is an aegis body of the Department, so the people providing the funding - Léargas - sit under us. On foot of the media report, we have asked for more information as to what has happened here.

Comment on this
John Brady An Cathaoirleach Sinn Féin

Has the Department received that information?

Comment on this
Dr. Colm O'Reardon

I will let Mr. Beausang speak to that.

Comment on this
Mr. William Beausang

I am not being particularly circumspect about this, but the position is that Léargas will be carrying out an assessment of the plan that DDLETB submitted and on the basis of which this visit was funded. As the Secretary General outlined earlier, Léargas holds back 20% anyway on the basis of the quantitative and qualitative assessment it carries out of the plan, which is encompassing. It is not just looking specifically at this; it is looking at everything that the ETB was funded for under its plan under this programme. Léargas has an authority to withhold funding or to clawback funding. The Cathaoirleach will understand that we do not want to insert ourselves in that process. The plan has not been submitted. It will have to be reviewed. An assessment will need to be made. In respect of whether the Department will articulate a view or get close to this issue, if it were an adverse decision, then there is, potentially, a risk of that being challenged and there being legal action somewhere.

Comment on this
John Brady An Cathaoirleach Sinn Féin

The Department might keep the committee updated when Léargas has responded.

Comment on this
Mr. William Beausang

We have information from Léargas. I do not know if the committee has contacted it. If the committee wants information from us-----

Comment on this
John Brady An Cathaoirleach Sinn Féin

The Department might furnish us with it.

Comment on this
Mr. William Beausang

-----we can certainly supply it.

Comment on this
John Brady An Cathaoirleach Sinn Féin

I appreciate that. I want to move to Skillnet and the issues identified therein by the Comptroller and Auditor General. Mr. Jordan gave a figure earlier for the number of networks currently out there. What was that?

Comment on this
Mr. Mark Jordan

It is 73.

Comment on this
John Brady An Cathaoirleach Sinn Féin

Funding has now stopped for one of those networks.

Comment on this
Mr. Mark Jordan

It is for more than one of the networks and schemes that were being promoted by the organisation in question.

Comment on this
John Brady An Cathaoirleach Sinn Féin

Reference was made to a protected disclosure made in 2023. What date was it in 2023?

Comment on this
Mr. Mark Jordan

It was originally received as a complaint in September 2023.

Comment on this
John Brady An Cathaoirleach Sinn Féin

Was it a complaint or a protected disclosure?

Comment on this
Mr. Mark Jordan

It was originally received as a complaint and then it was assigned to us as a protected disclosure by the Office of the Protected Disclosures Commissioner, OPDC, in December 2023.

Comment on this
John Brady An Cathaoirleach Sinn Féin

It is critically important to protect the person who made the protected disclosure, and I am conscious that a number of investigations are ongoing. Which network did the allegations revolve around?

Comment on this
Mr. Mark Jordan

A Chathaoirligh, I cannot discuss or identify the exact network.

Comment on this
John Brady An Cathaoirleach Sinn Féin

Okay. Was it a sustainable network? I am not identifying anyone. I am just asking for a "Yes" or "No" answer. Was it the sustainable network?

Comment on this
Mr. Mark Jordan

I am not really in a position to confirm or deny that.

Comment on this
John Brady An Cathaoirleach Sinn Féin

I am asking Mr. Jordan to do so. It does not identify the person or persons in relation to whom complaints or allegations have been made, and neither does it identify the person who made the protected disclosure.

Comment on this
Mr. Mark Jordan

I completely understand that. I would like to help the committee as much as I can, but it is just that the guidance and advice I have been given is not to discuss any specifics around either the reporting person or the organisation involved.

Comment on this
John Brady An Cathaoirleach Sinn Féin

Okay. The information I have is that it was a sustainable Skillnet network. Can Mr. Jordan give us information in relation to the ongoing Garda, Revenue and other investigations? What is their status?

Comment on this
Mr. Mark Jordan

The awareness I have is that they are all still open. I do not have any more details. I have been advised by the Garda that I would be notified if there were any specific questions or if the-----

Comment on this
John Brady An Cathaoirleach Sinn Féin

When was the last communication with the Garda in relation to this matter?

Comment on this
Mr. Mark Jordan

At this point, it was probably about six to eight weeks ago.

Comment on this
John Brady An Cathaoirleach Sinn Féin

In relation to the network in which the protected disclosure was made, Mr. Jordan made reference earlier to an individual or individuals who may be involved in other networks. I suppose these are individuals who were captured within this protected disclosure. Had they been previously engaged in other companies or as providers for Skillnet?

Comment on this
Mr. Mark Jordan

The protected disclosure was focused on one particular organisation. That organisation was a legal entity promoting more than one Skillnet network. We had no other knowledge of any protected disclosures in relation to that organisation.

Comment on this
John Brady An Cathaoirleach Sinn Féin

In relation to the investigation on foot of the protected disclosure that Mr. Jordan says, ultimately, came to Skillnet in December 2023, I thought it was in October that the protected disclosure came to Skillnet. Can Mr. Jordan clarify that?

Comment on this
Mr. Mark Jordan

Yes. I beg the Cathaoirleach's pardon if I have-----

Comment on this
John Brady An Cathaoirleach Sinn Féin

Mr. Jordan can get the information and come back to me on this point.

Comment on this
Mr. Mark Jordan

It was actually in December 2023 that it was assigned to us. We were assigned as the other suitable person by the OPDC.

Comment on this
John Brady An Cathaoirleach Sinn Féin

At what stage was RSM engaged to carry out the investigation?

Comment on this
Mr. Mark Jordan

Initially, we engaged with the disclosure in terms of scoping and building out terms of reference. We worked with Raiseaconcern. We then tendered in July and appointed RSM in October 2024. It commenced work on the investigation in November 2024.

Comment on this
John Brady An Cathaoirleach Sinn Féin

It was a year after the receipt of the protected disclosure that the formal investigation started.

Comment on this
Mr. Mark Jordan

Indeed, yes.

Comment on this
John Brady An Cathaoirleach Sinn Féin

Mr. Jordan earlier made reference, irrespective of whether a protected disclosure came in or not, to being on top of the issues and that they had been identified. How were they identified and what issues had been identified within this network? What action had been taken?

Comment on this
Mr. Mark Jordan

The issues were twofold. One was in relation to market demand and performance. This is an issue where we do not see expenditure, so, therefore, the organisation is not expending the funds and not attracting income and the activity and key performance indicators are not being delivered. The other issue was around what we would describe as management capability and overall governance. We were concerned with some of the issues we were seeing from our close, day-to-day monitoring, in terms of the reporting of transactions and the type of programmes and initiatives being delivered. That was caught within our own governance processes.

Comment on this
John Brady An Cathaoirleach Sinn Féin

What action was taken?

Comment on this
Mr. Mark Jordan

We intensified the-----

Comment on this
John Brady An Cathaoirleach Sinn Féin

I am sorry. On what date or when were those issues identified?

Comment on this
Mr. Mark Jordan

Let me just get the precise dates. That was in the second quarter of 2023. We started uncovering and identifying problems there. We intensified the work we were doing and the engagement.

Comment on this
John Brady An Cathaoirleach Sinn Féin

It was in the second quarter. What month was it, or do we have that information?

Comment on this
Mr. Mark Jordan

I would estimate it was somewhere around the April or May timeframe of 2023.

Comment on this
John Brady An Cathaoirleach Sinn Féin

It kind of coincides with when the complaint, as Mr. Jordan described it, as opposed to a protected disclosure, was first made. In respect of the issues identified in that complaint, or protected disclosure, as I see it, would it be safe to say that the procedures within Skillnet were robust enough to identify them, or was it, ultimately, the whistleblower who brought those issues to light?

Comment on this
Mr. Mark Jordan

Yes. It is a good question. I will clarify.

We had already identified issues in the April-May timeframe. The original complaint and protected disclosure were in September and December of that year. We were already intensifying our engagement. We were working with the organisation and in some cases we were suspending or withholding grant stage payments as well. We were making them contingent on certain criteria.

Comment on this
John Brady An Cathaoirleach Sinn Féin

Mr. Jordan might provide us with a note on what grants had been suspended and withheld, and over what timeframe. Ultimately, as I see it, the contract was allowed to expire. Mr. Jordan might give us a figure on how much funding went into this particular network in the time between the protected disclosure being received and the concerns identified by Skillnet and late 2024, when the contract expired.

Comment on this
Mr. Mark Jordan

Yes. I do not have that at my fingertips. If it is okay, we will write back to the committee.

Comment on this
John Brady An Cathaoirleach Sinn Féin

Was it in excess of €1 million?

Comment on this
Mr. Mark Jordan

No. It was nowhere near that amount at that time.

Comment on this
John Brady An Cathaoirleach Sinn Féin

Nowhere near that amount went in over a period of a year and half between the complaint being made in September and the contract expiring.

Comment on this
Mr. Mark Jordan

We had reduced the funding to the organisation significantly at that point. I can get the Cathaoirleach the exact number. I do not have it off the top of my head.

Comment on this
John Brady An Cathaoirleach Sinn Féin

Did that particular network have the ability to go outside to businesses and get additional funding? Was that within its remit?

Comment on this
Mr. Mark Jordan

The premise of the Skillnet model is that any grant funding is co-financed by the private sector, by companies. That would be the operating model. Additional funding for the network would not be appropriate.

Comment on this
John Brady An Cathaoirleach Sinn Féin

Does Mr. Jordan have any idea how much this particular sustainable Skillnet received in outside funding from companies?

Comment on this
Mr. Mark Jordan

Is that in terms of matched funding?

Comment on this
John Brady An Cathaoirleach Sinn Féin

Yes.

Comment on this
Mr. Mark Jordan

I would have to come back to the Cathaoirleach on the exact number.

Comment on this
John Brady An Cathaoirleach Sinn Féin

Is Mr. Jordan aware of any money being repaid on foot of protected disclosures or investigations?

Comment on this
Mr. Mark Jordan

No, because we have accounted for all of the private sector funding that was matched and there are no outliers there in respect of funds owed to either ourselves, which have all been recovered, or any funds to the private sector. The only amount outstanding did not attract any co-financing.

Comment on this
John Brady An Cathaoirleach Sinn Féin

I have two concluding questions in relation to the person who made the protected disclosure under the Act. This person has to be kept informed of the process throughout. What engagement has taken place with the whistleblower?

Comment on this
Mr. Mark Jordan

We engaged with the individual throughout the process and the person has been notified of the status at all stages of the investigation.

Comment on this
John Brady An Cathaoirleach Sinn Féin

The individual has a full copy of the outcome of the investigation at this stage, as they are obliged to receive under the legislation.

Comment on this
Mr. Mark Jordan

The guidance we were given is that the report and details of the report are really only shared with the recipient and not with the reporter in terms of their entitlement. We clarified that both legally and with the Office of the Protected Disclosures Commissioner.

Comment on this
John Brady An Cathaoirleach Sinn Féin

I find it unbelievable that it was only on foot of the C and AG that a redacted version of the final report went to the Department and that the Department still does not have the full report. I hear what the officials are saying in regard to protecting the identity of the individual but the entity itself is also redacted. I find it deeply concerning that there is withholding of critical information. The Department seems to be content with that. Do the witnesses share my concerns? The committee should also get a copy, even if it is of the redacted report. I put that to Mr. Jordan.

Comment on this
Mr. Mark Jordan

We engaged intensely with our legal advisers, the Protected Disclosures Act, the Office of the Protected Disclosures Commissioner and the Department. The agreement was that an unredacted report would not be shared.

Comment on this
John Brady An Cathaoirleach Sinn Féin

What is the Department's perspective?

Comment on this
Dr. Colm O'Reardon

Having read the document, I am satisfied that whatever actions need to be taken have been taken. Essentially, as I confirmed previously, all it does is redact information on identities. I am confident that, in terms of what needs to be done by Skillnet and referral to other authorities, that has been done. In a sense, I am satisfied. I would prefer if we could share this with the committee, frankly, but I had to go and get legal advice and I was told I could not because of the ongoing investigations.

Comment on this
John Brady An Cathaoirleach Sinn Féin

I have a final question. It was mentioned earlier that this was the first protected disclosure that Skillnet had received. How long was the organisation in place at the point at which it received the-----

Comment on this
Mr. Mark Jordan

The relationship with Skillnet Ireland has been since approximately 2015.

Comment on this
John Brady An Cathaoirleach Sinn Féin

This was first protected disclosure. Had the Department received any protected disclosures in relation to Skillnet?

Comment on this
Dr. Colm O'Reardon

Not that I am aware of.

Comment on this
John Brady An Cathaoirleach Sinn Féin

I thank the witnesses for that. That concludes my questions for now. Deputies are fighting over who goes next. I call Deputy Farrelly.

Comment on this

No, we are just checking.

Comment on this

Deputy Farrelly let me go first but I said he could have it back. I am making sure I can have it back.

Comment on this

Keep it in Kildare, lads.

Comment on this

I thank the witnesses for their time. To build on the Cathaoirleach's point, I have one follow-up question. The redacted report simply anonymises people. Nothing else is missing. Is that correct?

Comment on this
Dr. Colm O'Reardon

The nature of redacted reports is that you are looking at a piece of paper that has black pieces in it.

Comment on this

Dr. O'Reardon just said that he is confident that all that is missing in the report is names.

Comment on this
Dr. Colm O'Reardon

I am confident that it goes to some effort not to identify the person or the network.

Comment on this

What is to stop that person or network reimagining themselves in a different entity and being under contract in Skillnet right now?

Comment on this
Dr. Colm O'Reardon

Skillnet knows who the person is.

Comment on this

Skillnet has the unredacted version and it can publish that with the committee.

Comment on this
Mr. Mark Jordan

No, as we said, the advice we have been given, both by our own lawyers and the guidance-----

Comment on this

Can Skillnet provide the committee with the legal advice?

Comment on this
Mr. Mark Jordan

Yes, of course.

Comment on this

If Mr. Jordan could do that, that would be really helpful. It is to ensure we do not have a workaround here where that entity is being contracted by somebody else. That is great.

I am a very proud graduate of Carlow College. I was there for my undergraduate degree in 2008. Has Dr. O'Reardon been there?

Comment on this
Dr. Colm O'Reardon

I have not been to Carlow College.

Comment on this

Has Mr. Moynes been there?

Comment on this
Mr. Keith Moynes

I have.

Comment on this

It is a very special place. It is rich in heritage and culture. What I have noticed as a bystander since becoming an alumnus is the incredibly important work the college does in regard to the graduations, and not just specifically for social care workers. Very specifically, the CORU-accredited social care work programmes, which are right across a number of departments, provide a piece of essential infrastructure. To become CORU-accredited is really difficult. That is now going to be lost as a result of this.

The headlines at the radio station in Carlow have changed from the Minister welcoming the deal done between Carlow College and SETU to, most recently, the Minister welcoming a delegation from Carlow College to discuss this latest event. What does the Minister intend to do when he brings in that delegation from Carlow College?

Comment on this
Dr. Colm O'Reardon

I do not think I can speak for the Minister. The Deputy referred to his pride in Carlow College. We have talked previously to other Deputies about the nature of the college. As the Deputy knows, it is a private entity. It is not part of the State system.

Comment on this

Let us not rehash what has already been said. Specifically, why is the Minister now bringing in a delegation from Carlow College?

Comment on this
Dr. Colm O'Reardon

I do not think it is unreasonable to expect that people would have concerns and questions when this kind of event takes place. There is a fairly significant transition going to take place in terms of the institution and the staff. There is a piece of work to be done here around communication.

Comment on this

Why is it happening post event?

Comment on this
Dr. Colm O'Reardon

I might bring Mr. Moynes in on this. This is essentially between SETU and Carlow College, with the Department trying to assist-----

Comment on this

Yes, but that is based on consistent warnings from the Department that it cannot continue to work. It is an agreement but it is on foot of warnings from the Department.

Comment on this
Dr. Colm O'Reardon

I am not trying to distance the Department from it but I am saying there are responsibilities on SETU and Carlow College here. The staff are employed by Carlow College. In any kind of situation like that you would expect people to have a lot of questions and concerns, including very practical ones, but also the Deputy has referenced some of the emotional ones such as that attachment people have. There is a whole set of issues there and a communication task that is required. You would expect this in any situation when an entity is going through this kind of transition, whether it is a company, college or anything else. There is work to do here in terms of communication and that is the function of the meeting. I will let Mr. Moynes elaborate.

Comment on this

If I can come back in, that very much appears to be an afterthought given the Minister has already welcomed the deal. That is done; the deal is done, and now the staff come after. Were the unions involved in any conversations in advance of the deal? Will Mr. Moynes give me a "yes" or "no" answer because I am short of time.

Comment on this
Mr. Keith Moynes

It is important to be very clear. The Minister is very clear in his communications that staff should be informed and consulted.

Comment on this

Informed or consulted?

Comment on this
Mr. Keith Moynes

I cannot remember the exact language used.

Comment on this

They are two very different words.

Comment on this
Mr. Keith Moynes

I do not want to misrepresent what was said.

Comment on this

Mr. Moynes said, let us be very clear, and to inform and consult.

Comment on this
Mr. Keith Moynes

The obligation is on Carlow College to engage with its staff.

Comment on this

The Department has been sending them warning letter after warning letter saying they are not complying.

Comment on this
Mr. Keith Moynes

To the management of Carlow College, and the Minister was clear that staff needed to be engaged with.

Comment on this

A valuation has been done as part of the cost-benefit analysis of keeping Carlow College afloat. What is the valuation of the lands and buildings of Carlow College? How much is it?

Comment on this
Mr. Keith Moynes

It is in the order of €6 million.

Comment on this

Six million euro. Was that an independent valuation that was done?

Comment on this
Mr. Keith Moynes

Of course, yes.

Comment on this

Six million euro is what the Department or the State will gain from this. I assume it is intended that it be sold.

Comment on this
Mr. Keith Moynes

No, it is intended that the site continue to be used by SETU for educational and research and purposes related to SETU's mission.

Comment on this

How will that make it any more financially viable than what was happening? The staff have been an afterthought.

Comment on this
Mr. Keith Moynes

There is an entity - an organisation - that is Carlow College that was operating in deficit. The buildings are effectively being acquired by the State and will transfer to SETU, which is the university that is in the south east. SETU will use the buildings for their purposes related to their educational and research mission.

Comment on this

SETU will get a building but they do not get the staff and we do not know anything. Mr. Moynes said all staff will be available to apply for open competitions afterwards. That is not a transition. I can apply for those positions in the same way anybody else can. That is not a transition; that is just the open employment market. Those 87 staff are in the wind, in reality. It will be an open competition.

Comment on this
Mr. Keith Moynes

They are employees of a private sector entity.

Comment on this

Maybe this is a question for the Department of public expenditure. Has a business case been considered by SETU or the Department regarding the expected loss of social care worker graduates to the State when we have pretty much a recruitment and retention crisis ongoing in care settings? Has there been any work done that Mr. Moynes is aware of in regard to that?

Comment on this
Mr. Keith Moynes

Our expectation is that the system will respond to that and that other public sector entities, including SETU, will respond by growing their intake of social care workers given the particular need for them.

Comment on this

I do not understand.

Comment on this
Mr. Keith Moynes

If there is a need for social care workers, then we would expect SETU to raise its intake of new entrants to social care programmes.

Comment on this

I assume then that if the quantity of social care graduates is to increase, the staff requirements will increase also and the first offer will go to the staff of Carlow College who are experts in the field and have been living and working in the area for generations. It would make sense that they get the first offer of those jobs, surely.

Comment on this
Mr. Keith Moynes

Not first offer because it will be an open competition, but you would imagine they would have the skills and qualifications to compete successfully in those competitions.

Comment on this

I still do not know why the Minister is bringing the staff in. The deal is done.

Comment on this
Mr. Keith Moynes

The Minister is always available to hear messages.

Comment on this

It is a meaningless activity. What outcome can there be if the deal is done? What can change right now?

Comment on this
Mr. Keith Moynes

The staff-----

Comment on this

Will my pleas change what will happen?

Comment on this
Mr. Keith Moynes

The staff asked to meet the Minister and he acceded to that request. I do not think that is unreasonable.

Comment on this

I hope he sent the agenda that there is no point to this meeting if the deal is done.

Can I ask about ICT infrastructure? It was reported that a number of students in TU Dublin this year could not register for their courses. What happened?

Comment on this
Dr. Colm O'Reardon

Does Mr. Moynes have more detail on that?

Comment on this
Mr. Keith Moynes

This is an ICT project run by TU Dublin, not by the Department, so it is different to My SUSI and we are not the sponsoring Department. Our understanding is that there were problems with the student records system. Quality and Qualifications Ireland, QQI, which is the State's quality assurance agency, has engaged with TU Dublin expressing its concerns about the system. TU Dublin will have to do a remediation to make sure students can register. I understand TU Dublin was engaging with students but clearly, more needs to be done by TU Dublin to get the student records system functioning.

Comment on this

Did the Department fund that project?

Comment on this
Mr. Keith Moynes

There was some funding given but the Department is not involved in the governance. The governance of the project is being run by TU Dublin.

Comment on this

Is that appropriate?

Comment on this
Mr. Keith Moynes

TU Dublin is an independent, autonomous institution. Governance of IT projects in the sector is done by the universities. My understanding is that TU Dublin sought clarification on whether there needed to be Department of public expenditure oversight and clarification was conveyed that it was not subject to Department of public expenditure oversight.

Comment on this

Is this the same as the issues that are coming up in Galway?

Comment on this
Mr. Keith Moynes

I do not know if the issues are the same but they are both complex IT systems that are experiencing issues.

Comment on this

The State funds them but has no oversight.

Comment on this
Mr. Keith Moynes

The State did not fund Galway. That was funded from Galway's resources.

Comment on this

It was funded from Galway's resources. That is what I was trying to clarify. In terms of the Canvas Instructure hack, what universities were affected by that worldwide hack?

Comment on this
Mr. Keith Moynes

We got a note on it. I cannot think of them off the top of my head but we can give the Deputy the information we have.

Comment on this

Did the Department have any meetings with the Data Protection Commissioner or the Higher Education Authority, HEA?

Comment on this
Mr. Keith Moynes

The obligation is on an institution to report to the National Cyber Security Centre and they also are obliged to report to the HEA when there are issues of major concern.

Comment on this

The institution does not come through the Department, it goes straight to the-----

Comment on this
Mr. Keith Moynes

Sometimes we would be informed as a matter of courtesy but the governance relationship is to the HEA when issues arise and they are obliged to report issues to the National Cyber Security Centre.

Comment on this

Does Mr. Moynes have any concerns about Blackboard, Moodle or any of these really important platforms that hold so much personal information? Is he confident they are secure? Is there any work being done in the Department on this?

Comment on this
Mr. Keith Moynes

Cybersecurity is a major risk that all institutions would identify. Universities by their nature are open, as the Deputy said. Internationally, they are open systems where cyber has to be an issue. Each institution is responsible for its own cyber security and for deploying its resources in a way to make sure its data and infrastructure are secure from cyberattack. Undoubtedly, it is a major concern for all public institutions.

Comment on this

I thank the witnesses for coming in today. I will change the topic. An issue came up that Mr. McCarthy may be able to clarify again. Was a sum of €427,000 written off by the Atlantic Technological University? It was a capital project.

Comment on this
Mr. Seamus McCarthy

It was the Galway campus.

Comment on this

It was the Galway campus?

Comment on this
Mr. Seamus McCarthy

From memory-----

Comment on this

It was the Galway campus, but €427,000 was written off and we received quite a weak letter on it a few weeks ago because we looked for the detail on it. How do you spend €427,000 on a capital project and have absolutely zero to show for it at the end? Will the witnesses give us the details, now they are here?

Comment on this
Dr. Colm O'Reardon

We have a note and a very large file on this.

Comment on this

Give me a high-level, quick answer. How do you spend €427,000 on a capital project? I know Irish Rail spent €50 million and has nothing to show for that one but I am curious about the €427,000.

Comment on this
Dr. Colm O'Reardon

To my knowledge, this was something the university was funding from its own resources. It had a project. It did a certain amount of design and architectural work. It decided not to proceed because, I think it might have been to do with Covid or something along those lines. A decision was made to stop the project. That is one of those situations where, again it is not something the Department would have an involvement with because-----

Comment on this

The Department does not have oversight.

Comment on this
Dr. Colm O'Reardon

If it is their money-----

Comment on this

It is not their money; it is our money. It is all of our money. We pay all their contributions.

Comment on this
Dr. Colm O'Reardon

I agree with that.

Comment on this

Is that part of the problem, that these people see it as their money and they are not responsible? Is that endemic to the State? A lot of people spending money on behalf of the State see it as their money and that they are not responsible or beholden to anybody else, least of all the taxpayer?

Comment on this
Dr. Colm O'Reardon

They are accountable. There are systems of accountability within universities and they are accountable to their governing bodies.

Comment on this

Was anyone challenged by the Department afterwards?

Comment on this
Dr. Colm O'Reardon

I am not aware of us having done that.

Comment on this

Should they not have been? Should there not be reviews?

Was anybody found accountable? I will not ask if anybody lost their job. Was anybody challenged or, to use a better word, reprimanded over wasting €427,000?

Comment on this
Dr. Colm O'Reardon

It was involving a student centre. There was a tender process in December 2022. The projected costs had increased significantly from what was originally intended to €18 million inclusive, and essentially the university decided, in the context of that cost, not to proceed.

Comment on this

So no one was reprimanded.

Comment on this
Dr. Colm O'Reardon

Just to go back-----

Comment on this
Mr. Seamus McCarthy

I would just like to comment on it. It certainly has happened in other third level institutions as well. I remember there was a building in Maynooth and also, I think, in UCD. I would not actually look on it as something that somebody was accountable for. It may be better sometimes, if circumstances change, that you stop a project rather than continue to spend more money. In 2022, if you recall, there was a very significant increase in the cost of construction. I think a number of colleges thought again about the affordability of projects that they had been intending to do.

Comment on this

Do not get me wrong. I would prefer if Irish Rail had stopped at €427,000 too. I am not-----

Comment on this
John Brady An Cathaoirleach Sinn Féin

Just for clarity, we did discuss it. We asked for further information from Atlantic. They have sent us a letter with further information which is down for correspondence next week. Just to note that.

Comment on this

The initial correspondence was not good enough so we did go back and forth. If they are coming back again, that is grand.

Comment on this
Dr. Colm O'Reardon

The HEA, which is the regulator here, is entitled to interrogate them on it and they are accountable to this committee.

Comment on this

Yes, hence the reason. I do not mind asking. I have no problem. I think it is a very fair question.

To change topic, something we are very conscious of in this country is the trades gap. It became a huge topic just prior to my own generation going through college. We were all pushed through the university or college door into third level education. Some of the lads would have gone into trades in my time but that dropped off around the recession, I imagine. I am assuming that is probably when we saw the real drop-off. I am sure we have spent a lot of money, time and effort on trying to resolve that. Are we getting closer? Do the witnesses feel we are getting the percentages right, or do they have a defined percentage? What percentage of people would they say should be going down the trades route versus the university route, in an ideal world? Germany has different systems, including technological systems, as one goes through secondary school. Ireland does not have anything like that. I have no issue with it. What would be the right ratio? Is it 90:10? What is it at the moment?

Comment on this
Dr. Colm O'Reardon

We have instruction from the Government to increase registrations, which are at about 9,500 a year at the moment, up to 12,500 a year. Our job is to develop the system.

Comment on this

Is that in respect of 18-year-olds?

Comment on this
Dr. Colm O'Reardon

That is anybody who wants to.

Comment on this

Allowing for a mix.

Comment on this
Dr. Colm O'Reardon

In theory it could be a graduate who wants to do an apprenticeship.

Comment on this

I get that. That is a graduate coming off the other side.

Comment on this
Dr. Colm O'Reardon

If I go to the Deputy's more macro point, we have been given direction by the Government to increase. I do not think I have a number in my head as to what the right number is.

Comment on this

You mentioned an increase from 9,500 to 12,500.

Comment on this
Dr. Colm O'Reardon

That is the instruction we have from the Government. We have done analysis of what is required to deliver infrastructure, housing and so on. We published a report which sets out the various skills needs to meet different infrastructure and housing targets. Part of that is to get to 12,500.

Comment on this

What is the number doing the leaving certificate each year and coming into first year in college? It used to be around 60,000 or 70,000. Is it about the same?

Comment on this
Mr. Keith Moynes

We are in the middle of a demographic increase.

Comment on this

We are, and then we are going to come down again.

Comment on this
Mr. Keith Moynes

In the 2030s. For the next number of years, we are going up.

Comment on this

If it is about 70,000, and we are at 9,500, we are probably talking about 16% or 17%, give or take. The Department has been asked to bring about an increase of just over 30% from 9,000 to 12,500. Do we feel we will be able to get there? Is that up to what year?

Comment on this
Dr. Colm O'Reardon

It is the target for the lifetime of the programme for Government. It is a demand-led scheme, so it requires people to want to do apprenticeships. It depends on the level of demand coming in. There is an element of that. Going back to the Deputy's bigger point, I think choice is important here. It is important that people continue to have the option. The Deputy has described a decision, when he encountered it. I think it is important that people have options to go to university or to do an apprenticeship, or even potentially in certain circumstances to do both. The issue for us is there is a significant demographic bulge going through the system at the moment. Demand for courses is heading up until around 2032. We are going to face continuous pressure on places over that period. Our concern is to make sure that people have options.

Comment on this

How does the Department identify where there are specific gaps? In what areas are there specific gaps? Are there gaps in trades like plumbers? Where are the main gaps now and are there designated plans to fix them?

Comment on this
Dr. Colm O'Reardon

Ms O'Byrne might like to speak to the Indecon report that we did.

Comment on this
Ms Fiona O'Byrne

We commissioned a substantial piece of work on the different professions and job roles required for delivery of infrastructure and identified what the gaps are. There are gaps across all of the major trades as well as across engineering. There are pressures across the system, as we were discussing earlier, and also in areas beyond construction, for example in healthcare. As the Secretary General described, we need demand from individuals who want to take up apprenticeships. There has been a range of campaigns promoting apprenticeships.

Comment on this

Are they working? Have the officials noticed an uptick in the last year or two?

Comment on this
Ms Fiona O'Byrne

Yes. Numbers have increased very substantially. If we were to look at the total number of registrations, in 2020 it was just over 5,000 and it was up to 9,461 last year. They have grown very substantially.

Comment on this

We need to get to 12,500.

Comment on this
Ms Fiona O'Byrne

The ambition is to grow them substantially further.

Comment on this

That is a good trend. Just as regards the fees, do the officials feel the student contribution charge is a barrier to entry for people in colleges? Is that the feedback they get about it at its current level?

Comment on this
Dr. Colm O'Reardon

I think the Deputy is trying draw me into a political conversation.

Comment on this

No politician would ever do that in the Committee of Public Accounts.

Comment on this
Dr. Colm O'Reardon

You can say anything you like about that subject, and I really cannot comment.

Comment on this

There is no anecdotal feedback.

Comment on this
Dr. Colm O'Reardon

It is not something we would actively canvass.

Comment on this

I am not trying to put you in a tricky situation. I am just wondering.

Comment on this
Dr. Colm O'Reardon

We spend a lot of time and effort looking at a range of issues, including SUSI and the support for SUSI, which is the mechanism by which we support people, either by giving-----

Comment on this

A targeted offset.

Comment on this
Dr. Colm O'Reardon

Yes, targeted. That is a big part of what we do, but there is a political conversation there. I do not particularly want, in fairness to the Deputy, to-----

Comment on this

I was not trying to do that. I was just asking about barriers to entry for college. My last question is this. Of the 70,000 doing the leaving certificate, a certain number goes to the universities and third level colleges, and a certain number goes into the trades. What is the third number? What is the delta between the two that might go to neither that you do not capture? Is there a mechanism for capturing that number?

Comment on this
Dr. Colm O'Reardon

We are into a whole range of provision in the further education space, including what we would call post-leaving certificate, PLC, courses. Internationally, we try to capture that not at 18 but at 23. We try to examine what a person has done by the age of 23 or 25. Not everybody has to go immediately.

Comment on this

People could stay working on their own family farm or in a family shop. Does the Department capture the delta between the two?

Comment on this
Dr. Colm O'Reardon

We are trying to develop the further education space. There is a range of other things that people can do, such as a PLC, a tertiary degree or a short-term course. The education and training boards provide a whole range of provision there. Nobody's journey is the same as anybody else's.

Comment on this

I was more just wondering if you capture the number. If not, that is fine too. I was just wondering.

Comment on this
Mr. Keith Moynes

I think the State generally would capture the number of people who are either in employment or out of employment. There is a high degree of correlation between your level of skills and your employment prospects.

Comment on this
John Brady An Cathaoirleach Sinn Féin

We will go into a shorter second round, if that is okay.

Comment on this
Mr. Keith Moynes

I will just make a remark in respect of the cyberattack.

My understanding is that MTU and the University of Galway were the two institutions affected by the cyberattack. Both consulted and informed the National Cyber Security Centre.

Comment on this

I want to close out the student contribution fee issue with Dr. O'Reardon. Am I correct that at a certain income threshold there is a reduced student contribution? Will Dr. O'Reardon remind us what that is again?

Comment on this
Dr. Colm O'Reardon

I struggle to keep these numbers in my head at any given time. I will ask Mr. Moynes to go through that. This is around the higher level for somebody. Is that correct?

Comment on this
Mr. Keith Moynes

There is an escalation. At the lowest levels of income, people will get a free student contribution and the maintenance grant. That goes up in an escalating way. I have the figure in my book and I will try to get it for the Deputy before the meeting ends. At a certain level, that goes to 50% fees paid and I think between around €80,000 and €120,000, there is a €500 reduction. It is full for some people, half for some people and then it is €500 for the others.

Comment on this

The last time there was a political kerfuffle - I will call it kindly - about the student contribution fee, the Minister made the point that there was a low take-up of people recognising that they got a €500 discount on the student contribution fee at the higher income threshold. Is that correct?

Comment on this
Mr. Keith Moynes

There is definitely not full take-up.

Comment on this

From memory, at the time it was exceptionally low. What is it now? The Department ran an advertising campaign was run.

Comment on this
Mr. Keith Moynes

We did. I cannot think of it off the top of my head. I am sure it is in my book here somewhere. I will have a look to see if I can find it.

Comment on this

I hear what Dr. O'Reardon is saying about not entering the political fray on the student contribution fee but what can he say about it in terms of its neutral, negative or positive impact at its current levels? Regarding the discounts that are offered, at a policy level, on an evidence basis, what can the Department say on the student contribution fee?

Comment on this
Dr. Colm O'Reardon

A Chathaoirligh, I think I am being brought into a very political space. There is a variety of views about whether it is better to reduce the student contribution fee, which is essentially a universal measure from which everyone benefits or whether there should be more emphasis on the targeting of resources at SUSI. This, by definition, supports people through a means-tested scheme, essentially, which is trying to target resources. Students also bring a degree of their own resources because a very large number of them are working part time to support themselves in their studies. I do not have a particular piece of evidence to present to the committee as to the merits or demerits of any of those arguments. They are essentially in the political domain.

Comment on this

Is the impact of the student contribution fee and the various schemes to subsidise, lower or eliminate it for certain income levels ever examined by the Department?

Comment on this
Dr. Colm O'Reardon

We are doing research at the moment but that is focused on SUSI and trying to understand. We have worked to improve our forecasting on SUSI but also to understand where the different trade-offs are. We are working with the ESRI on that subject but I have not looked at the question of the student contribution.

Comment on this

Is that research seeing whether the current income thresholds are suitable, should be increased or are a bit low or a bit of everything?

Comment on this
Dr. Colm O'Reardon

Again, I think the Deputy is bringing me into a political space, which I absolutely respect but-----

Comment on this

I am asking is that what the research is about.

Comment on this
Dr. Colm O'Reardon

I am not aware that we are looking at the question of student contributions in terms of trying to understand behaviours or anything of that nature.

Comment on this

What is the research that is being done on SUSI? What is it looking into with the ESRI?

Comment on this
Dr. Colm O'Reardon

We are trying to develop our capacity to forecast what the costs will be if we make changes in thresholds.

Comment on this

That is what I thought. That was my question. The purpose of the research is to assess the impact of changes to the thresholds on people accessing third level education. Is that correct?

Comment on this
Dr. Colm O'Reardon

It is more around what the cost would be of changing a threshold here or there.

Comment on this

It is what the cost would be, not the net social impact. Is that correct?

Comment on this
Dr. Colm O'Reardon

No, I do not think we are in that space.

Comment on this

The Department is carrying out the research. What has the Department asked the ESRI been asked to do?

Comment on this
Dr. Colm O'Reardon

I do not know if the Deputy is familiar with the ESRI's simulating welfare, income tax, childcare and health policies model, SWITCH, which is used to analyse changes in social protection. We are trying to get to a version where we could use SWITCH to better model changes in SUSI. This would give you a better understanding of the distributional impact of different changes to SUSI. This is not something which would typically give you information about behaviours and what the implication would be for people's willingness to go to college, say, on a student contribution.

Comment on this

When the national skills observatory is established, what will be the output of that information? That will be run by SOLAS so presumably it will inform the kinds of programmes that SOLAS runs. Will it have a broader impact in terms of informing Ms O'Byrne's Department and others, and industrial policy? Where will that information flow travel?

Comment on this
Ms Fiona O'Byrne

The intention is that it is for the entirety of the skills system and not limited through the provision funded by SOLAS. The observatory will have a steering group with representation from the HEA, the Department of enterprise and a range of colleagues from different Departments and State agencies to take a whole-of-system view. It will inform what the higher education institutions and the ETBs look at in terms of provision, as well as providing information for policymakers like ourselves around interventions that might be required.

In due course, we also expect the information to be of interest to individuals making decisions about their own trajectories and career and training choices.

Comment on this

A lot of this information will be published.

Comment on this
Ms Fiona O'Byrne

Exactly, yes

Comment on this

Will the information flow have application or be relevant to the Department of education, as distinct from the Department of further and higher education, as well?

Comment on this
Ms Fiona O'Byrne

I would have to double-check that. I do not think the Department of education is on the steering group. However, we work closely with it in the space of transitions and the movement from school to further and higher education. Again, the intention is that the information will be publicly available and available to the likes of guidance counsellors as well.

Comment on this

Ms O'Byrne was quick to make the distinction that the Department of enterprise is doing lots of things with AI. Is AI the catalyst for the establishment of the national skills observatory or what is the catalyst?

Comment on this
Ms Fiona O'Byrne

It is the recognition that more scope exists to do more with the data, so we should be making the best of that. In 2023, we had the OECD do a review of our skills system. One of its recommendations was to move towards the establishment of a national skills observatory.

Comment on this

Is it the threat of the disruption that AI is bringing to the labour market that has triggered the Department into action? What is the catalyst? Is it just that there are better systems out there?

Comment on this
Dr. Colm O'Reardon

The Department was set up in 2020 so we are trying to think about what our role is. Ms O'Byrne mentioned the OECD. As we develop the Department, we are thinking about what we should do and what functions we should serve. One of them is this thing that we have described in terms of forecasting skills needs. There is no doubt that AI is a significant component of that, whether it is happening now or is likely to happen into the future. There is the issue of AI in terms of reskilling people in the labour market or how people in universities incorporate AI in their learning. There is a variety of challenges from AI coming at us. It is not the only thing that motivated the skills observatory but it is a significant component of it.

We got the ESRI to do a piece of work on three specific skills areas, which demonstrated that the new methodologies we referred to about scraping data from websites and so on, provide a significant advance in what is possible in this area. Hence, we are making an investment there.

Comment on this

The use of AI will advance the Department's ability to identify potential disruption caused by it.

Comment on this
Dr. Colm O'Reardon

Yes, exactly.

Comment on this

Finally, I suspect Mr. Jordan is the right person to ask this question. In the opening statement from Dr. O'Reardon - I think I have got this right - it was stated that ineligible expenditure of nearly €20,000 and an unused grant of more than €47,000 were returned by Skillnet Ireland to the contracting organisation. What is the total amount this contracting organisation has received?

Comment on this
Mr. Mark Jordan

Is this in terms of what is due back to Skillnet Ireland?

Comment on this

No, it is not in terms of what is due back. What is the total amount of moneys that this contracting organisation has received?

Comment on this
Mr. Mark Jordan

Over the course of our relationship with it, the entirety was about €2.4 million.

Comment on this
John Brady An Cathaoirleach Sinn Féin

I have a number of questions. Mr. Jordan stated a couple of times that in relation to the protected disclosure the person who made the disclosure was unable to co-operate and brought that process to a head. He also made reference to that individual stopping their co-operation. Am I accurate in what I think Mr. Jordan said?

Comment on this
Mr. Mark Jordan

The discloser who disclosed the matter was engaging with us and then ceased all engagement and was unable to, or did not, co-operate with the investigation.

Comment on this
John Brady An Cathaoirleach Sinn Féin

Is Mr. Jordan sure on that fact?

Comment on this
Mr. Mark Jordan

Yes.

Comment on this
John Brady An Cathaoirleach Sinn Féin

In relation to the ability of Skillnet Ireland and the oversight and governance with the networks, was there an ability for Skillnet Ireland to appoint a board member to any of the networks?

Comment on this
Mr. Mark Jordan

Could the Cathaoirleach rephrase the question, perhaps?

Comment on this
John Brady An Cathaoirleach Sinn Féin

Was there any provision for Skillnet Ireland to appoint a board member to any of the networks?

Comment on this
Mr. Mark Jordan

Not that I would be aware of, no. Do you mean a member of-----

Comment on this
John Brady An Cathaoirleach Sinn Féin

Skillnet Ireland has not appointed anybody to any boards. That ability does not exist.

Comment on this
Mr. Mark Jordan

Not to my knowledge.

Comment on this
John Brady An Cathaoirleach Sinn Féin

Not to Mr. Jordan's knowledge, okay.

In relation to the service level agreement, SLA, between the Department and Skillnet Ireland and the oversight agreement, when the issues were first identified on foot of the complaint, protected disclosure or internal mechanisms - correct me if I am wrong but I presume there is an agreement between Skillnet Ireland and the Department - did Skillnet Ireland bring those concerns immediately to the attention of the Department?

Comment on this
Mr. Mark Jordan

Is this relating to the protected disclosure?

Comment on this
John Brady An Cathaoirleach Sinn Féin

It is relating to the issues that Mr. Jordan stated the organisation had identified and the complaint that had been made. Was there full disclosure to the Department at that stage? At what stage was the Department made aware of these issues or concerns?

Comment on this
Mr. Mark Jordan

Regarding the ongoing governance checks that were identifying issues, we would not ordinarily make the Department aware of that because we are dealing with those.

Comment on this
John Brady An Cathaoirleach Sinn Féin

Were these issues flagged within the financial statements in Skillnet Ireland?

Comment on this
Mr. Mark Jordan

We were dealing with them. We were working with the organisation, for example, to reconcile some of the amounts.

Comment on this
John Brady An Cathaoirleach Sinn Féin

Is there an expectation from the Department's perspective, under an SLA and issues such as this being identified within an organisation, in this instance Skillnet Ireland, that it should have been flagged immediately with the Department under the disclosure agreement?

Comment on this
Dr. Colm O'Reardon

We were aware that there was an issue. We asked for updates on it. We would have been-----

Comment on this
John Brady An Cathaoirleach Sinn Féin

At what stage was the Department made aware?

Comment on this
Dr. Colm O'Reardon

I will check the notes. In October 2023, we received an early warning report from Skillnet Ireland advising that it had received allegations by email in the September in relation to one of those things and a contracting organisation. Over the period, we would have checked in with Skillnet Ireland looking for updates. We would have had an acceptance that protected disclosures are sensitive and that we can only ask for so much information about protected disclosures. What we have done is we have changed the text of the performance delivery agreement with Skillnet Ireland to require it to keep the Department updated on any aspect of a personal disclosure which identifies any financial wrongdoing, misuse of funds or any other potential issues. Skillnet Ireland has acknowledged this, but this protected disclosure should have been managed more quickly. The process took too long.

Comment on this
John Brady An Cathaoirleach Sinn Féin

It is an issue that we are going to be coming back to when get full sight of the additional information that has been requested.

I wish to move on to a piece of work the committee embarked on that was trying to identify the costs of courses for Secretaries General. This was on foot of concerns that had been expressed in relation to the previous chair of the OPW where there was extraordinary expenditure and very little value for money to the taxpayer. Of all the Departments, which all came back to us, the one that stood out was the Department of further and higher education. It was not Dr. O'Reardon but his predecessor who embarked on a course to be a leader who matters programme in Stanford University in the USA at an extraordinary cost of over €65,000. That was between 2022 and 2023. Mr. Breslin then left the Department and took up employment in a different sector in that same year. From Dr. O'Reardon's perspective, and one of the metrics here is to ensure there is value for money, does he think that expenditure of €65,000 on a course when an employee has one foot out of the door presents value for money to the Department and the taxpayer?

Comment on this
Dr. Colm O'Reardon

As I said to the Cathaoirleach, I joined the Department after Mr. Breslin left. I do not have sight of the specific considerations.

Comment on this
John Brady An Cathaoirleach Sinn Féin

Okay. Leaving the specific aside, does a cost of that magnitude represent value for money?

Comment on this
Dr. Colm O'Reardon

There was a process that was followed. However, following this issue coming to our attention, we have amended our processes, such that if a person were to leave the Department today within 12 months of undertaking any programme, they would have to refund the costs. They have to-----

Comment on this
John Brady An Cathaoirleach Sinn Féin

When did that come into place?

Comment on this
Dr. Colm O'Reardon

I cannot recall exactly when we made that change.

Comment on this
John Brady An Cathaoirleach Sinn Féin

I will check with the C and AG.

Comment on this
Mr. Seamus McCarthy

It has been fairly standard that for an officer who benefits from fees of a course being paid there would be a 12-month period that if they left within that period they had to repay the fee costs. We tested in this case. It was 15 months after the course was taken. If it had been less, I would have probably been calling it out. It did not apply in the case of Secretaries General, but it may have changed now.

Comment on this
Dr. Colm O'Reardon

It now does.

Comment on this
John Brady An Cathaoirleach Sinn Féin

Whether that timeframe is coincidental or otherwise, I am not quite sure. Would something like this be sanctioned again?

Comment on this
Dr. Colm O'Reardon

The Cathaoirleach is asking me if I have any intention. No, I have no intention of engaging in that kind of programme. It is important that senior management in-----

Comment on this
John Brady An Cathaoirleach Sinn Féin

I am not questioning that. It is about the expenditure of €65,000 when the employee has one foot out of the door. There is a public perception out there. It has happened in other instances where someone is nearing retirement, or moving on from the Department or the organisation, and it is to further their own career on the back of public expenditure with no value to the organisation or the Department. That is the concern.

Comment on this
Dr. Colm O'Reardon

We have changed our process.

Comment on this
John Brady An Cathaoirleach Sinn Féin

Dr. O'Reardon cannot say whether it represents value for money or not.

Comment on this
Dr. Colm O'Reardon

I was not there at the time. We would be clear that any programme that people have to go on has to be based on analysis of what the need is, and the 12-month rule would apply.

Comment on this
John Brady An Cathaoirleach Sinn Féin

I wish to move onto the issue of apprenticeships that Deputy Neville mentioned. It is positive to see the plans to expand the apprenticeship programme. It is an area that has been lagging. There has been a lot of criticism regarding the backlogs, the underfunding within the whole sector of apprenticeships and the number of people dropping out from apprenticeships.

Dr. O'Reardon might give us a number as to whether there are backlogs for people to enter off-the-job training at phase 2, phase 4 or phase 6. He might be able to provide some of those details now.

Comment on this
Dr. Colm O'Reardon

This was an issue that was particularly acute in late 2023 and throughout 2024. It arose because of Covid. There was a backlog and there was a very intense focus of attention given to that. I might ask Ms O'Byrne to give you the number.

Comment on this
Ms Fiona O'Byrne

As the Secretary General said, when workshops closed through 2020 and 2021, apprenticeship was much more severely affected than other parts of the tertiary education system. Higher education and other further education programmes much more successfully transferred online but, given the hands-on nature of apprenticeship, substantial workshop delays built up-----

Comment on this
John Brady An Cathaoirleach Sinn Féin

We have worked through those backlogs, have we?

Comment on this
Ms Fiona O'Byrne

More or less, yes. They have reduced very substantially. There were very big efforts put in to increase phase 2. It was at phase 2 that we had very big issues because the combination of the workshops closing and the success at having more people register as apprentices led to those backlogs building up. The capacity at phase 2 was stepped up very substantially and they largely have been addressed.

Comment on this
John Brady An Cathaoirleach Sinn Féin

Ms O'Byrne might provide us a note-----

Comment on this
Ms Fiona O'Byrne

A note on where they are, sure.

Comment on this
John Brady An Cathaoirleach Sinn Féin

-----on the current backlogs there at each of those different phases and the numbers of people because there are issues there. I hear all the time about young people looking to do an apprenticeship but facing the cost-of-living crisis, unaffordability of accommodation and the low rates apprentices receive. That is one of the determining factors for people, first, not taking on an apprenticeship and, second, dropping out after a period of time. Ms O'Byrne might furnish us with the dropout figures and whether there is a review ongoing or planned in terms of the rates for apprenticeships because it is a huge area of concern.

Comment on this
Ms Fiona O'Byrne

Absolutely, we are happy to get the committee a note on those. The completion rates for apprenticeships are actually very high. They are in the range of 92%, which compares quite favourably with other programmes. For various reasons, people do not always continue programmes. The completion rates for apprenticeships are actually higher than in higher education, for example. We are happy to get the committee a note with the details, including any backlog.

Comment on this
John Brady An Cathaoirleach Sinn Féin

On an annual basis, maybe from prior to Covid up to this point, just so we can see those figures.

I want to touch on the Higher Education Authority. It has been stated that the Higher Education Authority has written to the Department in recent weeks expressing deep concerns about the funding gap across the sector. Has a letter been received by the Department?

Comment on this
Mr. Keith Moynes

An annual report is done. It is a reflection of the engagement that takes place between the HEA and the institutions on an annual basis about budget. It would have conveyed to the Department the views of institutions about the need for enhanced funding, to be sure.

Comment on this
John Brady An Cathaoirleach Sinn Féin

Okay, so there are concerns about the funding gap, are there?

Comment on this
Mr. Keith Moynes

Yes, and it is the Department's position that we continue to work on it through Estimates processes.

Comment on this
John Brady An Cathaoirleach Sinn Féin

Can you furnish that report to the committee?

Comment on this
Mr. Keith Moynes

We can. There are certain elements that might be commercially sensitive to the institutions, but we will furnish it, absolutely, as much as we can.

Comment on this
Dr. Colm O'Reardon

It is the stated position of the Government and the Department that there is a gap in core funding in higher education which was estimated a few years ago at €307 million. Some of that has been filled. Some €174 million has been added, but it is somewhat unusual in the sector that the position of the Government is that the sector is underfunded.

Comment on this
John Brady An Cathaoirleach Sinn Féin

I want to touch on one last issue. To be parochial for a moment, I want to sing the praises of Bray Institute of Further Education, in my constituency. It is a fantastic institute. It has over 1,300 permanent, full-time students and 1,000 part-time students. There is a serious issue there in terms of the condition of the premises. I have seen people having to stand with buckets in corridors to collect water coming in through leaking roofs. We have had announcement after announcement about future plans to develop a first-class educational campus on that site for that facility. The witnesses might be able to give us an update. It is badly needed. Huge investment is needed there. It is a real success story, with people travelling not just from within Wicklow but further afield. Investment is needed. It is just to see whether the institute is included in the capital plan and what capital is planned.

Comment on this
Dr. Colm O'Reardon

Mr. Lemass may want to just-----

Comment on this
Mr. Paul Lemass

As regards the repair of the roof, BIFE is working with a design team to review the design of the roof with a view to inviting tenders for contract before the year is up. The design team has to work through the precise configuration. The complexity that arose was because, in addition to the short-term measures to repair the roof, Bray Institute is also part of the long-term FET major projects proposal, and its proposal in the long term would see some of that roof removed. The challenge was to identify an approach that would do as much repair as possible but without necessarily investing in an area that was then going to be dismantled as part of the longer-term project. That is what the design team will be tasked to do: to explore the best way to fix the roof in such a way that bits that are going to form part of the longer-term proposal do not get repaired-----

Comment on this
John Brady An Cathaoirleach Sinn Féin

That process will move to tender later this year. Is that-----

Comment on this
Mr. Paul Lemass

The tender for the repair of the roof will take place this year.

Comment on this
John Brady An Cathaoirleach Sinn Féin

Okay, with work hopefully commencing on that element next year at some stage?

Comment on this
Mr. Paul Lemass

Subject to the response to the tenders, yes.

Comment on this
John Brady An Cathaoirleach Sinn Féin

Then the bigger, more substantive, badly needed piece is the development of a fit-for-purpose campus there, which ultimately needs to be the objective. What kind of timeframe are we looking at there?

Comment on this
Mr. Paul Lemass

As regards the timeframe there, there are two pieces of work. Each ETB that is participating in this programme has to prepare a design brief. In parallel, the Department, working with the GDA and SOLAS, is putting together a framework of architects, structural engineers, mechanical and electrical engineers and quantity surveyors. That framework will be available for drawdown in September, and any ETB that has its design brief ready at that point in time is free then to engage with the framework and hold a competition to appoint architects and engineers. It is a hugely significant point in the development of a project because these are the people who will then start putting the actual designs in place, including preparing documents for planning permission, fire certificates and-----

Comment on this
John Brady An Cathaoirleach Sinn Féin

So the onus is on the ETB to have that piece of work-----

Comment on this
Mr. Paul Lemass

In parallel with the framework being put in place by August.

Comment on this
John Brady An Cathaoirleach Sinn Féin

Then funding is contained in the national development plan within the Department?

Comment on this
Mr. Paul Lemass

Yes.

Comment on this
Dr. Colm O'Reardon

I reassure you, a Chathaoirligh, that the college is a future priority for us. There is an envelope of funding within the NDP, and this is a very important project for us in Bray.

Comment on this
John Brady An Cathaoirleach Sinn Féin

It is not suitable when buckets have to be put in place in corridors to collect water in this and day and age. We spoke earlier about prefabs in education, in primary and secondary. In third level education, when we have properties that are not fit for purpose, it is doing a disservice to education. I will keep in touch on that. It is badly needed. Hopefully, it can be delivered, but the campus is ultimately what needs to be the priority and the goal.

That concludes our engagement for today. I thank the Secretary General and his officials from the Department of Further and Higher Education, Research, Innovation and Science for attending. I also thank officials from Skillnet Ireland, the Department of Public Expenditure, Infrastructure, Public Service Reform and Digitalisation and the C and AG for their attendance once again.

Is it agreed that the clerk will seek any follow-up information and carry out any agreed actions arising from the meeting? Agreed.

The committee will meet again on Thursday, 25 June 2026, with the Beaumont Hospital board and representatives from the HSE.

Comment on this