4098. Deputy Ken O'Flynn asked the Minister for Further and Higher Education, Research, Innovation and Science the reason State funding for Skillnet business networks has not increased in line with inflation despite a National Training Fund surplus approaching €2 billion; the steps being taken to align funding with verified enterprise demand; and if he will make a statement on the matter. [63531/26]

Skillnet Ireland is a valued and strategic partner in advancing workforce development and promoting lifelong learning across the country. My Department provides funding to Skillnet Ireland through the National Training Fund (NTF). Core funding for Skillnet Ireland has grown by 43.5%, from €35.9 million in 2020 to €51.5 million in 2026. This reflects the Government’s strong commitment to enterprise-led workforce development.

While my Department allocates funding to Skillnet Ireland, responsibility for determining the allocation of funding to individual Skillnet Networks rests with the Skillnet Ireland Board. Allocations are made in response to funding applications from individual networks and are determined having regard to the available budget, strategic priorities and the anticipated impact of proposed activities.

Deputy, it is important to recognise that while NTF funding and Exchequer Vote funding are distinct funding streams, they are treated as a single expenditure envelope for my Department for budgetary and Government accounting purposes. As it currently stands, any increase in NTF-funded expenditure must be accommodated within my Department's expenditure ceiling and the overall government expenditure ceiling. In practical terms, this means that additional NTF expenditure would require a corresponding reduction in my Department’s Exchequer-funded expenditure.

In relation to the NTF surplus, I am actively engaging with colleagues across Government, including the Minister for Finance whom I met in June, to discuss the issue of expenditure ceilings that affect the rate at which NTF resources can be deployed. I am keen to make progress on this matter; however, the level of expenditure that can be drawn down is ultimately a matter for Government agreed through the overall fiscal and budgetary framework and it is not determined by my Department alone. Accordingly, while the NTF has a significant accumulated surplus, the existence of that surplus does not provide my Department with additional spending capacity or access to additional funding outside of the agreed fiscal and budgetary framework.

It should also be noted that maintaining a prudent reserve, for example an amount equivalent to approximately one year's NTF expenditure, can play an important role in safeguarding against economic and fiscal uncertainty. Such a reserve helps to ensure that sufficient resources are available to sustain education, training and skills programmes during periods of reduced income or increased demand, and supports the continuity of programme delivery over the economic cycle.

Deputy, I would like to take the opportunity to draw your attention to other NTF-funded supports available to enterprise including targeted and flexible upskilling options under SOLAS’ Skills to Advance initiative. These options include micro-qualifications to ensure that enterprises can respond to the rapidly changing world of work, advances in technology and tackling climate change. In 2025, 37 FET micro-qualifications were co-designed with industry stakeholders under this initiative.

Funding from the NTF includes provision for Springboard+ which provides free and heavily subsidised upskilling and reskilling opportunities through higher education. In order for a course to be considered for Springboard+ funding, the course provider must (among other things) demonstrate clear evidence of engagement with enterprise and industry partners. In 2026, €34.5 million is allocated to Springboard+ programmes.

In addition, NTF funding contributes to Enterprise Ireland’s leadership and management development programmes supporting training for an average of 1,000 participants annually.

The NTF also supports IDA Ireland's training grant programmes for client companies. In 2025, this funding contributed to the upskilling and reskilling of more than 9,000 employees across 33 companies.