The Government has flatly rejected calls by a group of leading academics to reintroduce third-level fees.
The Royal Irish Academy said Ireland needs to invest €450 million per year in third-level education in order to keep up with standards in leading European countries.
They say the only way this money can be raised is by reintroducing fees, a measure which was recommended last year in a major review of Irish third-level education by the OECD.
The OECD study shows Ireland's seven universities and 15 institutes of technology are performing below the OECD average in many key areas. Ireland ranks 14th out of 26 in the OECD spending table on third-level education.
But the Department of Education today reiterated a statement by Minister for Education Mary Hanafin earlier this year. "The issues of fees is not on the agenda," a Department spokeswoman told ireland.com.
She refused to be drawn on the RIA's report or where the additional funding would come from.
The Union of Students in Ireland (USI) said today third-level fees were not the solution to the funding crisis. USI President, Tony McDonnell said he agreed with the RIA that additional income was needed, but the call for the return of fees "cannot be supported".
Fees have been shown to have a "detrimental effect on student access and retention", he said.
"The reintroduction of fees would put third level education beyond the reach of some of the brightest and best in Irish society, and to hear the RIA, a body dedicated to the advancement of learning, advocate such a move is disappointing."
Ms Hanafin announced last April the Government would be introducing a new multi-million euro fund for higher education to be earned by the colleges next year. Universities and institutes of technology will have to compete for allocations from this fund under detailed criteria to be established by the Higher Education Authority.
