The Cabinet has formally endorsed the landmark OECD report on third-level, in a move which could significantly boost financing for the sector.
The Government decision, taken at last Tuesday's Cabinet meeting, may also herald a radical shift in the management of the sector.
Following the decision, the Minister for Education and Science Mary Hanafin is set to bring forward proposals on the sector in the autumn.
This could see the abolition of the Higher Education Authority, which oversees the seven universities. This could be replaced by a new Tertiary Education Authority (TEA) which will take charge of both the universities and the booming institute of technology sector. The establishment of the TEA was a key recommendation of the OECD report.
It is thought, however, that Ms Hanafin will consult widely with the third-level sector, before framing any legislation to establish the new TEA.
The OECD report, the first comprehensive review of the sector in a generation, was published last year. It proposed a quantum leap in funding for the sector. This, it said, was necessary if the sector was to be the engine of further economic and social development.
The Government says a world-class third-level sector is vital if the Republic is to take a leading role in the so-called "Knowledge Society".
It is understood Ms Hanafin will bring proposals to the Cabinet, outlining how funding could be boosted for the sector. The Government has already ruled out the return of third-level fees as proposed by the OECD report.
But the Minister will explore a range of other options. These are thought to include further development of the non-EU student sector and the development of much closer links with business and industry.
It is understood the broad thrust of the report was endorsed by Ministers this week. Ms Hanafin has been asked to bring forward a range of proposals which would allow some of its 52 recommendations to be implemented.
The Minister is currently engaged in a consultation process with the third-level sector on the report. Two months ago, she hosted a special summit on the future of the sector at Dublin Castle.
The OECD highlighted the relatively poor funding of the third-level sector. When it comes to spending per third-level student, the Republic ranks 14th out of 26 OECD states.
But the report was also critical of the sector itself. It makes a case for vastly more international students, closer links with business and a more business- oriented approach to scientific research projects.
The OECD states, bluntly, that the third-level system has reached a crossroads. It says Ireland has some way to go to achieve its goal in research and innovation.
But in a key section it cautions: "We do not believe, with the economic and fiscal realities facing Ireland, it will be possible to develop the globally competitive tertiary education system and research capability . . . by relying on State funding alone."
