Vol. 471 No. 4
211 Mr. N. Ahern asked the Minister for Education the estimated annual cost of free third level education for students when the proposal was originally made; and the cost per year based on the out-turn for the first year. [21147/96]
At the time of announcement of the free fees initiative the net additional expenditure cost was estimated at £40 million on the basis of fee levels and estimated student numbers at that stage. This cost excluded fees already being met by the State under the student support schemes. The amount required to meet the tuition fee costs under the free fees initiative in the 1996 calendar year is projected at about £55 million.
The difference between the £40 million estimate and the projected cost in 1996 is due to the following factors. First, undergraduate fees increased by 4 per cent in each of the academic years 1995-96 and 1996-97. Second, student numbers increased in each of the academic years also. Third, fee costs previously met from the student support provisions are now directly charged against the provision for the free fees initiative. For example, new entrants to third level in 1996-97 who satisfy the terms of the student support schemes will not have their fees charged against the schemes as was the practice previously. The costs involved will now be a direct charge on the provision for free fees.
The introduction of the free fees initiative was accompanied by the withdrawal of tax relief on most covenants. It is estimated that if tax covenant relief had not been withdrawn its cost would have been in excess of £60 million in 1997-98.
