Presentation from Ned Costello, Chief Executive, Irish Universities Association, to the SCONUL Conference 20-21 June 2013, Dublin

1. Managing
Turbulence
Presentation to:
SCONUL Conference
Ned Costello
CEO
Irish Universities Association

2. “WE
DIDN’T
START
THE
FIRE ”

3. • Credit Explosion
• Regulatory failure in international banking system
• Commercial and Domestic Property Bubbles
• Distortion of tax base & pro-cyclical budgeting
• Austerity Measures
The Global Meltdown

4. • By 2015 Tax Revenues will be 8% below 2007 peak
• Tax Revenues of €36.6bn - 25% below 2007 peak
• Growth in Government expenditure of 7.5%
mainly due to social welfare transfer payments
The National Meltdown

5. Gap between revenue and gross voted expenditure
is closing…
• In 2010 Tax Revenues 33.3% below 2007
peak…..with government spend up nearly 12%
The National Meltdown

6. General Government Dept…
2007 2011
€47bn €169bn
Dept to GDP Ratio…
2007 2011
25% 106%
The National Meltdown

7. “The UK currently spends
£43 billion on debt interest,
which is more than it spends
on schools in England”.
UK Comprehensive Spending
Review 2010

9. Staff:Student Ratios - mid 20’s:One
10% more Students – 10% less Staff
World Leading Efficiency of Irish HE System
Improved
Weathering the Storm

10. High Overall Satisfaction with Quality of Graduates
Research Funding and Performance doing well
Non Exchequer Funding now between 30-50% of
University Budgets
Weathering the Storm

11. We have survived 4 years of the greatest
economic crisis since the great depression!

12. Strategic Challenges facing Institutions
Sustainability
Participation
Performance
&
Accountability
Governance
Research
&
Innovation
Funding
Structures

13. Participation

14. Participation
Participation Rate now close to 70%
UK Participation Rate less than 50%

15. Participation
Growth of
24%
By 2030

16. Participation
A + B
b. Restructure
of Existing
Capacity
a. Additional
Capacity

17. Participation
Significant Productivity Gains on Service
ECF has removed 600 non-academic staff since 2008
Admin staff have maintained service quality under
pressure of resources

18. Participation
Spotlight on Education – the role of Libraries
MOOCs – Flavour of the Month but just one aspect
of innovation in T&L

19. • Irish HE – a Binary System
• Key Government Aim – a Coordinated Systems
Approach yet respectful of institutional autonomy
• Minister for Education’s Response to the HEA
Landscape Report
Structures

20. Structures – Landscape Report
• 3 IOT’s Progressing to next stage
• Strict Criteria must be met
Technological
Universities
• Mergers between Smaller Institutions
• Rationalisation of Teacher EducationMergers
• Joint Academic Planning
• Programme Rationalisation
• Access and Progression
• Sharing of Facilities
Regional
Clusters

21. • Focus on Mergers in Wales
• Effect of New Fee Regime in UK
• Competition for Places
• Unfilled Places in some Institutions
• Viability of some Institutions threatened
• Compare outcomes of UK and Ireland’s different
emphases on Competition and Collaboration
Structures - UK

22. Performance, Accountability & Governance
• New Fee Regime places stronger emphasis on
Student Choice and Voice
• Minister Russell focused on changes to Governance
• Changes to Composition of Governing Authorities
• Introduction of Performance Funding & Compacts
• Key Performance Indicators
• More Public Reporting on System Performance
• Introduction of Student & Employer Surveys
• Greater emphasis on individual performance &
performance mgmt.

23. Research Funding
has fared relatively better than…
Core University Funding
Government recognition of the link between…
RESEARCH / INDUSTRIAL DEVELOPMENT / ECONOMIC GROWTH
Research & Innovation

24. • RAE / REF
Focus on…
• Organic evolution of specialisation
• Driven by competitive funding
• Main funder Science Foundation Ireland
Emphasis on…
• Excellence with Impact
• Prioritisation of funding on 14 Priority Areas
• Basic Research not precluded
Research & Innovation

25. Research & Innovation
Commercialisation:
Growing emphasis on…
• Ensuring stable & predictable IP Environment
• With easier interaction between public research system
and business
• Establishment of cTTO by IUA and EI

26. Research & Innovation
Institutional Research:
Intrinsic linkage between…
University Libraries & Entire Academic Research Infrastructure
Key Features…
• Move to Open Access Repositories
• Assembling of Research Intelligence using Bibliometrics
• Technology Transfer – emphasis on electronic dissemination and
marketing of IP

27. Finance
“Money, thou bane of bliss,
and source of woe”
George Herbert’s “Avarice”

28. Finance
Universities autonomously control admissions
Little real constraint on intake
No off quota places because there are no quotas!

29. Finance
Student Charge €3000 by 2016
£9000 Fee Maximum
No National Student Loan Scheme

30. Finance
• Income diversification being pursued
• Internationalisation is Important
• In Research Funding
• In Overseas Students and Branch Campuses
• Both are National Priorities
• Good co-operation between HE Sector &
Immigration Authorities

31. Finance
Philanthropy
• Generosity of Atlantic Philanthropies an exception
• Philanthropy not as developed in Ireland as in UK
• Ireland has a mere handful of philanthropic trusts

32. Finance
Core Reduction Measures are everywhere:
• Swingeing cuts to public service pay
• Uni. Remuneration Structures remain rigid
• Multiple Grades with significant overlaps
• No Pay Spine and No Above Spine Flexible Bargaining

33. Finance
• No Capacity to reward Leadership Positions
• No Capacity for Redundancy
• Enormous Focus on Cost Reduction
• Procurement
• Shared Services/Outsourcing
• Successful to date on low hanging fruit; cleaning,
catering, security…

34. Issues for
Discussion & Debate

35. Is the potential for the massification of
higher education unlimited?

36. Can the current model of university
education sustain very high participation
rates or does that model need to change?

37. Do we need more joined up thinking across
further and higher education about access
transfer and progression?

38. Will cost and participation stresses give rise
to radical technologically driven changes to
modes of delivery and what are the
implications for libraries?

39. What is the balance between teaching and
research institutionally and system wide?
Is research intensity enhancing teaching
or reputation?

40. Have we allowed ranking systems to create
a false construct of quality by counting
what can be counted rather than what
counts?
Can Institutional research
and libraries help here?

41. What is the appropriate balance between
public and private funding?
What are the limits of the cost or debt
burden which can be sustained by students
and graduates?

42. Can we have a rational debate about
performance management and local and
public accountability?

43. How can we communicate the value of
universities to the general public and to the
political system?
Can librarians to more here to act as
ambassadors?

44. Thank You