2025-12-11

200. Deputy Donna McGettigan asked the Minister for Further and Higher Education, Research, Innovation and Science the steps his Department is taking in relation to the reports that a €17 million business school at University College Cork has been permanently shelved; and for an update on the status of the matter. [67912/25]

The plans for a business school at UCC have been in development for the past three years, with reports that an architect firm had signed a contract of €3.5 million in 2022. From my understanding, the project was expected to cost over €100 million and was slated to start in 2024. This would have also included the provision to accommodate 4,000 students. The statement from UCC stated the college would provide an update on Cork university business school in the new year. Are we now in a situation where millions of euro of taxpayers' money is effectively down the drain? Will the Minister clarify what the situation is?

I hope the Deputy will agree that value for money is a key component of every State-sponsored project or use of State funds. UCC is an autonomous institution. It manages its own projects and capital and it is responsible for the oversight, planning and management of its capital development plan. The university has a review under way in light of increased construction inflation. The increase in construction costs and materials in recent years has been well ventilated and that has an impact on provision and delivery of various projects. On completion of that review which is currently under way, UCC will submit its capital plan to the governing authority in the coming months; I expect it in the new year. Provision of €25 million was made for the business school in 2019 under the higher education strategic infrastructure fund. Approval in principle was granted in 2019 and the total cost of the project at that time was estimated at €105 million, with a delivery of a 17,000 sq. m custom-built business school on a site on Union Quay being examined. I understand that the university and the governing authority have full intention and full ambition to develop a world-class business school. They are committed to the project. It will advance. However, value for money is a key consideration. Space utilisation and optimisation in the preferred location must be a feature, as must student access and accessibility, synergy and the ability to leverage other parts of the existing campus. There are a number of considerations that are currently being examined in light of this review but I am assured that the ambition and intention remains to deliver a world-class business college of which the city and the college can be very proud. However, I do not expect that it will be the same proposal as has been previously presented.

It is no secret that universities are continuing to deal with chronic underfunding for the best part of 30 years and there does not seem to be any let-up on that front. This means many universities have a heavy reliance on international students, who pay costly fees towards the Irish university sector, and potentially this is a factor in this project not going ahead. According to the Irish Examiner, the UCC business school plan was reliant on the expected income to the business school coming from international students. The publication also recorded that during the first post-pandemic year of 2022, 52,000 student visas were authorised in the State. That increased to 60,901 last year. According to statistics provided to the Dáil in May, figures for this year are not in yet but the indications are that there has been a drop-off in the number of students, particularly Chinese students, coming here. Why do our State-owned universities have to scramble for funding elsewhere? Is there not a need for funding contingency in these types of situations?

For clarity, I am not aware of any impact on this particular project as a result of any kind of funding withdrawal or shortfall. It is news to me if that is the case. It has not been raised with me by any of the college authorities or anybody else in the sector other than by way of the Deputy's suggestion today on the floor of the Dáil. As such, it is fair to say it is not a factor here. What is strongly a factor is delivering value for money. I hope the Deputy agrees with me that it is important State funding is used well, wisely and to deliver maximum benefits for the institute and for the student population it serves. The ambition remains to develop a very high-end business school in the ambit of UCC. However, a wise reassessment is taking place of the overall project specifications, scope and cost envelope as part of the capital review plan. I am heartened that the college authorities are doing that. It is a wise approach to the use of State money and the ultimate outcome will be far stronger for it.

I welcome that there is still ambition for this project. However, ambition is not reality or actual work on the ground. Is the Minister aware of any timeframe for how long the review will take? What happens if we are left with an unfinished site? That site could accommodate 4,000 students. Meanwhile, students continue to struggle to afford extortionate rents in the private market. We are now in a situation wherein the university has paid out millions of euro on a development that is, in effect, abandoned for now, although the Minister says the ambition to progress it is still there. This should not be happening. Hard-working taxpayers have a right to know what has happened. Can the project be taken over by the Department to ensure the site is developed to house students if what is planned does not go ahead?

The Deputy will have to forgive me for saying I am not entirely sure what she is asking. On the one hand, she is calling for me to spend more money and, on the other, she is talking about being careful with taxpayers' money. I am a little confused as to what her ask is. Value for money is a key consideration. UCC is an autonomous body and a very well-run institution with an extremely competent chair, president and board. They have told me they intend to publish their renewed and revised plans early in the new year and we will then see the shape of the new business college. It certainly will be stronger for the process that has been gone through. Throwing good money after bad would not be wise. Proceeding with a project that, at a specification and cost level, may be far in excess of what is appropriate or necessary would not be a wise move. I am speaking hypothetically but I hope the Deputy agrees with me on that principle. I look forward to UCC publishing its revised plans for the business school in 2026. The university will have my full support for the next steps.