Corporate profits should be subject to a new tax levy specifically to fund third-level education, a Teachers Union of Ireland (TUI) conference has heard.
Public investment in higher education must be increased, TUI president Paddy Healy said. He added that the business community, one of the chief beneficiaries of an educated workforce, should make a direct funding contribution.
A dedicated higher education levy on business profits, rather than a general corporation tax increase, would ensure the money went directly to education.
"The grounding for this proposal lies in the fact that the corporate sector derives demonstrable, direct benefit from the availability in Ireland of a highly skilled, graduate labour pool which is the product of extensive higher education provision," Mr Healy said.
The current rate of corporation tax was low by international standards, so an additional 2 per cent tax levy would be a progressive step, he said.
"The application of a higher education levy of 2 per cent, no more than a modest re-adjustment in itself, would not inhibit inward investment or employment prospects."
The TUI is also calling for an audit of the higher education grants system "to eliminate abuse and to increase grants and threshold to realistic levels", according to Mr Healy. Prohibitive tuition fees for part-time students should be abolished if the Government was committed to life-long learning, he added.
