Dáil Éireann debate -
Tuesday, 9 Nov 1993

Vol. 435 No. 6

Ceisteanna — Questions Written Answers. - Higher Education Grants.

Thomas P. Broughan

Question:

109 Mr. Broughan asked the Minister for Education if she will ensure that the necessary moneys for third level grants are immediately forwarded by her Department to Dublin and all other local authorities; and if she will further ensure that such moneys are forwarded at the beginning of each college term from now on to avoid the hardship which students are suffering for the past six weeks.

Edward Nealon

Question:

129 Mr. Nealon asked the Minister for Education if her attention has been drawn to the fact that, because of the delay by her Department in providing the necessary funding for third level grants to the various local authorities who administer the scheme on behalf of her Department, many students are still awaiting the first instalment of their grant for this year even though term has begun over three weeks ago; if her attention has further been drawn to the fact that this is a problem that arises year after year with very few local authorities being in a position to provide students with the money they are entitled to at the start of term; if she will take action to ensure that local authorities are in a position to pay out the grants immediately; the plans, if any, she has to ensure that there will not be a repetition of this situation in the coming years; and if she will make a statement on the matter.

Edward Nealon

Question:

130 Mr. Nealon asked the Minister for Education if local authorities throughout the country, who administer and pay the third level grants as agents of her Department, have to borrow money from the banks because of the delay in the disbursement of the necessary funding by her Department; the total amount of interest such borrowing cost each local authority throughout the country in the last school year; if this interest has been or will be returned to the local authorities; and if she will make a statement on the matter.

Edward Nealon

Question:

131 Mr. Nealon asked the Minister for Education her views on whether the late payment of grants to third level students is one of the serious inadequacies of the scheme; and the plans, if any, she has to deal with this problem.

Minister for Education (Ms Bhreathnach)

I am taking Questions Nos. 109, 129, 130 and 131 together.

Grant payments under the higher education grants scheme are made by the local authorities as soon as individual awards have been processed and this expenditure is subsequently recouped by my Department. The arrangement in relation to recoupment which has operated since the grants scheme was introduced in 1968 is that recoupment in respect of a local authority's expenditure in a particular local financial year is paid after the end of that year. My Department will ensure that claims submitted by local authorities in respect of the 1993 local financial year will be paid as early as possible in 1994.

The information sought about bank borrowings and interest payments by local authorities in connection with higher education grants is not available in my Department. My Department does not recoup interest payments to local authorities.

While I am aware that the local authorities make every effort to pay these students grants as early as possible in each term, I accept, nevertheless that the present grants process — including the arrangements for payment of students — is less than satisfactory. I am committed to achieving improvements in this process. In that context the terms of reference of the expert advisory group on third level student support, which I set up earlier this year, include the making of recommendations for,inter alia, the most effective and efficient organisational arrangements for the administration of the schemes.

I look forward to receiving the advisory group's recommendations before the end of the year.