Addressing higher education leaders at the law firm’s Dublin office, Mr Lawless proposed a new approach to give universities greater freedom to respond to changing national skills needs.

He commented: “Rather than negotiating separate funding allocations every time we need additional healthcare professionals, new AI programmes or other critical skills, we should consider a more comprehensive funding settlement that enables institutions to adapt and deliver within their overall allocation.”

The minister said third-level funding arrangements need to reflect the changing demands on institutions.

“We must recognise that the world has changed considerably since Funding the Future was published in 2022,” he said, adding that he intended to work with the sector to reassess requirements and develop a more sustainable approach.

Melanie Crowley, partner and head of employment and benefits at Mason Hayes & Curran, moderated the discussion and commented: “Universities are competing internationally for academic talent while facing significant pressure on staffing budgets. A more sustainable funding model would help institutions take a longer-term approach to recruitment and invest in the specialist expertise they need.”

Claire Lord, partner and head of corporate governance at Mason Hayes & Curran, said the proposed reforms could have significant implications for how universities set their strategic priorities.

She said: “Long-term financial certainty is essential for universities planning major investments. A more flexible model could give governing authorities greater confidence to make decisions that support their institutions’ ambitions.”

The discussion also examined the future of international education, including opportunities for Irish universities to deliver programmes overseas, and the challenges of attracting academic talent.