Further and Higher Education

172. Deputy John Clendennen asked the Minister for Further and Higher Education, Research, Innovation and Science the actions he intends to take in conjunction with further and higher education providers to address identified regional shortages in advanced digital skills such as artificial intelligence, cybersecurity, data and cloud technologies. [71794/26]

I thank the Deputy. I have a strong interest in this area. I have been working to look at the skills of the future economy and the skills of the future society. What do we need to provide in terms of future-proofing our labour force and, indeed, building out the skills for the next generation? One of the group reports that was sent to me and advised me was the expert group on future skills needs. I also have the National Skills Council. Those groups look at exactly these questions, such as what are the skills in an age of digitalisation, demographic change, deglobalisation and many other factors. They are things like the Deputy mentioned, such as AI, cybersecurity, data analytics and cloud technologies. I would also add things like green skills and renewable energy. We need a significant energy capacity to power industry in the years ahead. Regarding construction skills, modern methods of construction need to be supported. We have the Mount Lucas side gainfully employed doing that and many others. One of the findings that the report highlighted was that there is a concentration in the Dublin, eastern and midland region for those skill sets. That reflects the employers in those areas, innovation clusters and the strength of local skills ecosystems. While the Deputy is a midlands Deputy like me, we are familiar with that landscape, but it is important that we focus on regions as well and make sure that all the country is supported in terms of the skills that are needed. That is why there are now nine regional skills forums up and running, with my Department working with further education and training, FET providers, ETBs and the higher education institutes in each area looking at skills on a regional level to see what skills are there and what gaps exist. It is not necessarily one size fits all. There might be certain areas, for example, the Atlantic coast, which is prime for offshore skills to be developed. Other areas have different niches. We see that within industry with life sciences, pharma and technology. There are natural clusters that form in certain areas and there is a lot of sense to that. I might come back in my response to talk a little bit about the National Training Fund and some of the submissions.

The Minister mentioned Mount Lucas, which has visited several times. My sense from the likes of Mount Lucas is that we are developing locally or regionally for a practice globally. That is the unique opportunity of it. Whether it be the likes of the Laois and Offaly Education and Training Board, LOETB, level with Mount Lucas or even at a university level if I look at the likes of Shannon College of Hotel Management, which is focused on tourism and that global luxury experience piece, there is a learning there in terms of the template that can be applied. As the Minister said, to ensure that investment does not become cluttered in one particular area, potentially on the suburbs on Dublin, we have to apply it regionally. One of the unique parts of this, and it is a risk in many ways but in other ways it is an opportunity, is how it is evolving in front of our eyes and the need to be agile and adaptable to it and to ensure that happens with a constant monitoring process but also ensure that there is adequate investment in the area. That is one of the key components of it.

I have visited Mount Lucas on a number of occasions. The Deputy is always there, and Deputy McCormack is a great supporter of that facility. The Minister of State, Deputy Harkin, has visited it a number of times as well. We are very supportive of that. It is a great centre there. More broadly on the fast-moving space that is AI and digitalisation, one of projects that I have started is a series of skills round-tables where I go out to meet industry in different sectors and bring all the training providers into a room along with employers, IBEC and other representative groups and have a conversation about what the skills needs are in this very fast-moving landscape. I have done that with technology, AI, construction, legal and financial professionals. In two weeks’ time, I will do it with the energy sector in terms of understanding the skills needs they have, the gaps and how we can fill those gaps. That is very worthwhile. That will feed into training delivery and policy in relation to the coming months and years.

The Minister makes a very valid point on that need for engagement, but it is also that need for reassurance to employees and workers. There is almost a growing expectation that jobs are just going to be eliminated by the new time. That is not going to happen in reality. There is always going to be a need for human capital and human engagement. That is something that we cannot underestimate here. It is to support workers, protect those jobs and engage with those investments from a corporate perspective to ensure that we are bringing that regional investment. We have to look at adaptability into the future. There has been talk about how we can possibly use the National Training Fund better, but also how our tax system needs to evolve over time to ensure that we are embracing this. If I look at the likes of the midlands, there is a huge opportunity to tap into the likes of that grid infrastructure, both from digital infrastructure and renewable infrastructure. That creates huge opportunity.

I do not disagree at all. The Deputy is right. On the taxation, one of the measures that I advocated for in next year's budget and it was introduced was the broadening of the research and development tax credit to allow more institutions to participate in that. Previously, the research and development tax credit was research done within the company or corporation. Now, a university or an education provider in the area can subcontract that work out and take it on, and then the spend qualifies under the research and development tax credit. That is very useful because it means that companies can engage with local research institutes or universities. It is a new source of revenue for the universities and the institutes. Working with the Minister, Deputy Chambers, I secured €150 million from the National Training Fund for an AI and future skills package. The ink is only dry on it but we are putting together the detail of that at the moment as to how we roll that out. However, it will include the reassurance that Deputy referred to, and he is right. We need to have skills for people to move into the new post-AI world as well.