Theresa Ahearn
Question:73 Mrs. T. Ahearn asked the Minister for Finance if he will outline the cost of providing the covenant scheme for higher education purposes; and if he will make a statement on the matter.
Written Answers. - Higher Education Tax Relief.
Subject to certain conditions, tax relief is available, apart from some minor categories, on income covenanted (i) to universities or colleges in the State to enable them to carry on research or assist them to teach the natural sciences; (ii) to schools in the State to assist them to teach the natural sciences and (iii) by parents to their children aged 18 years or over. There is no requirement that individuals in category (iii) be attending third level education. Relief on all covenants is estimated to cost some £25.6 million in the curent income tax year; no breakdown of this figure between the various categories is available, but covenants to individuals aged 18 years or over probably account for the bulk of it.
Theresa Ahearn
Question:74 Mrs. T. Ahearn asked the Minister for Finance if he will provide an estimate of the cost of providing income tax relief on the cost of third-level education for students in higher education authority colleges who do not receive a higher education grant; and if he will make a statement on the matter.
Statistics are not available which would enable a precise estimate to be given and in any event it is not clear what the Deputy would seek to include in the cost of third level education for the purposes of the relief she suggests. However, it is broadly estimated that the cost of providing income tax relief, on an amount equivalent to the average grant paid under the higher education grants scheme, in respect of those students attending recognised Higher Education Authority colleges who are not in receipt of a higher education grant, would be of the order of £25 million in a full year. I would point out that students in Higher Education Authority colleges, even those not in receipt of a higher education grant, already benefit from the substantial Exchequer expenditure on such colleges.