THIRD-LEVEL colleges have been ordered to cut their spending on advertising, public relations and consultancy payments by 50 per cent.
However the cutback is being vigorously resisted by university presidents who have demanded a meeting with Minister for Education Batt O'Keeffe.
The Higher Education Authority (HEA) has told colleges that "all expenditure on consultancies, advertising and public relations must be significantly reduced for the remainder of this year and by at least 50 per cent in 2009".
It is understood the authority was requested to make the move by the Department of Education, but the colleges say the HEA is not entitled to demand this cut under the Universities Act.
The cutbacks in advertising are in addition to the 3 per cent cut in payroll costs which have already been demanded by the department. The HEA's demand has drawn a furious reaction from university presidents.
In the past week, their representative body - the Irish University Association - has sought a meeting with Mr O'Keeffe to discuss the issue.
Last night one senior university figure told The Irish Times: "This is a disaster for the universities at a time when we are competing with British colleges for the best students. Advertising is not a luxury; it is how we promote ourselves to students and to a global audience."
Advertising and marketing have become increasingly important for colleges in recent years.
With fewer Leaving Cert students chasing a wider range of third-level courses, the colleges have used extensive marketing campaigns to attract students.
The fresh cutback has raised new fears of a "brain drain" of some of the brightest Leaving Cert students to universities in Britain and the United States.
Last year, UCD president Dr Hugh Brady warned that Leaving Cert students scoring exceptionally high CAO points were being increasingly targeted by universities overseas.
The HEA allocates funding on behalf of the department. While it has the power to provide overall guidelines, the colleges say it cannot tell them how to spend the money.
About 16,000 students from the Republic are attending third-level colleges in Britain and Northern Ireland.
In recent years, British colleges have marketed themselves aggressively in the Republic in order to recruit Irish students. Increasingly, representatives from British and US colleges are also canvassing for students at career evenings in some Dublin second-level schools, notably in the fee-paying sector.
Amid increasing anger about third-level cutbacks, university presidents are due to meet the Minister next month.