We all remember the infamous photograph of Deputy Ruairí Quinn outside Trinity College Dublin in advance of the 2011 general election, when he signed a big banner and the students' petition, saying he would cut rather than increase student fees. Of course, subsequently, when he took office as Minister for Education and Skills, he blatantly and cynically disregarded that commitment. Ever since then third level funding has been on a cliff. It is in a seriously difficult situation. Pupil-teacher ratios have got progressively worse, going from 16:1 to 20:1. There is little or no capital investment, apart from the Grangegorman campus, in third level education. The central role of third level education in economic development is not reflected in current Government policy and has not been for some time. It is indisputable that over the past 40 years investment in third level education was central to economic and social development, particularly in attracting foreign direct investment and in developing small to medium sized companies and giving young people a chance in life. The great success story of modern Ireland has been the degree to which we have opened up third level education through institutes of technology and universities to far more young people than was the case in the 1950s and 1960s.

The quality of the experience for students is in decline. That is a real worry for those in charge of the universities and for those who have analysed this. There will be more young people going into third level education in years to come. Population growth and the numbers coming through second level all point to far greater numbers attending. The quality of the experience should be good. We have been slipping in some of the world league tables of university rankings and that is a considerable worry.

The report of the expert group on future funding for third level education, the Cassells report, has highlighted much of this and pointed to the urgent need to restore and enhance quality. It has recommended an immediate increase of €120 million per year over the next five years. It recommends spending €5.5 billion over the next five to six years on capital infrastructure in third level education. Students need additional supports. Postgraduate students should be prioritised and their grants restored. I have been saying this for the past three to four years.

Do the Taoiseach and the Government accept the recommendations of the Cassells report? As discussions and negotiations begin about the forthcoming budget, will the Government reflect significantly increased funding of approximately €120 million to third level education?

Deputy Martin’s general point is perfectly correct that the attractiveness and reputation of this country for foreign direct investment is built on the energy of young people and the mark they make. That is through the educational system, which is not perfect but which has more than measured up against any of its competitors around the world. Primary, second and third level are all important parts of that jigsaw. From the evidence of my engagements with business abroad, Ireland’s reputation is a very important cornerstone, more so than tax in many respects, for people who want to invest here and work with the young Irish.

The Minister for Education and Skills, Deputy Bruton, has received the Cassells report, which sets out three options. The report will go to the Oireachtas Committee on Education and Skills for consideration and discussion. Deputy Martin is well aware that most of the universities raise significant sums of money themselves for their capital programmes, assisted in part by the State. There is always a balance to be achieved between the output from universities and the challenge to provide sufficient money for them. We did not have this capacity for many years. I do not want to predict the outcome of the budget allowances but this report will be considered very carefully because that is in the country’s interests.

The Minister for Public Expenditure and Reform has signed off in general with Ministers in respect of the budget for 2017 but it is an issue that concerns Government because the future years will in many ways depend on a world that is changing so rapidly and upon Ireland’s flexibility to deal with those challenges and changes. The third level sector has to be at the core of that. The report will go to the committee and the Minister looks forward to hearing the views of the Deputies and parties and their observations on the priorities. The budget will be outlined at sectoral level at the committees and will be presented by the Minister in October.

I am disappointed with the Taoiseach’s reply because it kicks the can down the road by referring the whole report to the Oireachtas committee whose deliberations will not have concluded in advance of the budget and the key estimates’ formation and allocation. There are three options, each of which calls for increased State funding. The third level sector is in financial crisis. The Committee of Public Accounts last year identified some institutes of technology as being in dire financial straits. I do not want to name them here and create further embarrassment for them but they are in trouble. It is a question of priorities and prioritisation. We nailed our colours to the mast on this in our manifesto and have subsequently said there has to be a direct increase in allocation to the third level sector. Otherwise we are storing up big trouble for the country.

I asked the Taoiseach if he accepts the recommendations of the Cassells report. Does the Government accept them? There has been no statement from the Government, the Taoiseach or the Minister for Education and Skills other than that it is being sent to the committee. Does the Government accept the recommendations of the Cassells report and will they be reflected in an increase in the forthcoming budget?

The answer to the second question is in so far as possible, given the economic constraints on Ministers in general, the priorities will be reflected in the budget in whatever way they can. The expert report makes clear that doing nothing is not an option. The Deputy would accept that it would not be fair for the Minister to say at this stage that he is nailing his colours to option A, B or C. There are downsides to all the options and they are not without significant challenges. It is only right and proper that, having accepted and received the Cassells report, which has been published, and members of the public and various bodies are sending in their views on it, the Members of this House should have their say because these matters need to be teased out and there are no easy options yet something has to be done. The Deputy knows that if we follow the concept of a student loan scheme the higher postgraduate achievers can add greatly to their earning power.

Park that. I am referring to increased State funding.

We do not need any more talk at this stage because time is up.

That is a matter for the budget that will be finalised eventually. I recognise the scale of the challenge, as universities have pointed it out over the past number of years. The Minister, Deputy Bruton, is focused on getting a ten year consensus on where we want to be with the education sector which includes a capital programme to provide for the many changes and challenges to come.