asked the Minister for Education if her attention has been drawn to (i) the changes in the method of calculating higher education grant eligibility vis-á-vis means test and (ii) the unfair changes which calculate profitability higher than that as per account or higher than the taxable profit on the farm such as the cases of persons (details supplied) in County Wexford; and if she will have the matter reviewed.
Written Answers. - Higher Education Grant Eligibility.
148.
For a candidate to be eligible for the award of a higher education grant, the reckonable income of the candidate and of the candidate's parents or guardians must be within the income limits set out in the relevant scheme. For the purpose of the scheme reckonable income means gross income from all sources, less any sum paid by way of contribution to a superannuation fund, and excluding also children's allowances under the Social Welfare Acts, holiday earnings of the candidate and payments under the family income supplement scheme.
For self-employed persons the income to be reckoned includes the profits from business/farming activities (including lettings of land, equipment etc.) after deducting expenses incurred in earning these profits, such as rent, rates, wages paid out, repairs to machinery and equipment, purchase of seeds, fertilisers, business interest and stock relief. When reckoning expenses which may be taken into account as expenses incurred in earning profits no amount shall be included in respect of depreciation (including capital allowances such as on plant or equipment), expenditure on the construction of fences, roadways, holding yards, drains or land reclamation, expenditure on construction of farmhouses or farm buildings, expenditure on the construction of business premises or expenditure relating to personal use, for example the elements of expenditure relating to personal use contained in such items as light, power, fuel, telephone, insurance, motor expenses and bank interest and charges.
The basis for assessment of reckonable income of self-employed persons under the higher education grant scheme for the 1988-89 academic year is in keeping with the arrangements I have outlined above. These arrangements have been in operation since 1983.
It is understood from Wexford County Council, the body statutorily entrusted with administration of the scheme, that the reckonable income (calculated in accordance with appropriate guidelines) of the persons (details supplied) exceed the limits for the award of a grant, in each case.
There is no obligation on local authorities to accept tax assessments by the Revenue Commissioners as the sole criterion for determining reckonable income/eligibility for higher education grants.