The return of college fees is widely expected to be proposed today in a major international review of third-level education in the State.
The review, the first in two decades, by the Paris-based OECD is also expected to propose the streamlining of the seven universities and 14 institutes of technology.
It may also propose much greater involvement by business in the financing of higher education. There is speculation that it may propose mergers and/or enhanced links between some universities and ITs.
Last year, the Minister for Education, Mr Dempsey, was forced to abandon his plan to reintroduce fees of up to €6,000 per year when Government colleagues refused to back the initiative.
However, in a economic review published last year the OECD pointed to the general international trend where students are asked to pay fees. Ireland is "exceptional" it said in having eliminated fees for undergraduates.
It noted research which showed that "this policy is yet to show noticeable results in terms of broadening inclusion from all sectors of society".
It is expected the OECD will propose reintroducing fees or say the Government must face up to the funding crisis facing colleges by finding new sources of finance. Last year's OECD economic review also made a strong case for Australian-style "study now, pay later" students loans. In its review, the OECD said the current "subsidisation of third-level is questionable on both equity and efficiency grounds". Several other OECD countries, it noted, have successfully targeted support for higher education through fee, loans and grant schemes which include provision for the less well-off.
The OECD review team is expected to spend a fortnight visiting third-level colleges and interviewing senior academics and policy makers.
Today, the team is due to visit the Higher Education Authority (HEA). In its submission to the review, the HEA said colleges should be free to move outside the State sector if they wish.
The review comes when the Irish third-level system is coming to terms with severe budgetary cutbacks. Most colleges are facing an effective 10 per cent cutback in day-to-day funding this year.
Mr Dempsey has said that the return of fees is off the agenda for the "foreseeable future". However, the Government is under intense pressure to provide some alternative source of funding for hard-pressed colleges.
The Government has said a state of the art third-level sector will be the platform for the State's development into a "knowledge economy". However, the colleges point out that it is unrealistic to expect an underfunded sector to compete successfully in the global race for the best students.
In an article in today's Irish Times, the new UCD president, Dr Hugh Brady, argues that Ireland is facing a "brain drain" unless colleges are properly funded.
Major rethink is needed to hold onto our best students: page 12
