Dáil Éireann debate -
Tuesday, 30 Sep 1997

Vol. 480 No. 6

Written Answers - Higher Education Grants.

Michael Ring

Question:

544 Mr. Ring asked the Minister for Education his views on the opinion that the non-allowance of depreciation and accrued interest for the purposes of higher education grants is linked to control of Department spending rather than the legitimate right of the individual to have his or her income fairly assessed in determining eligibility. [14244/97]

Michael Ring

Question:

545 Mr. Ring asked the Minister for Education the basis, if any, for the treatment of depreciation and accrued interest on borrowings for business purposes under the higher education grant scheme. [14245/97]

Michael Ring

Question:

546 Mr. Ring asked the Minister for Education the reason his Department treats depreciation and accrued interest on borrowings in one fashion while the Revenue Commissioners treat it in exactly the opposite way, in spite of the fact that both bodies share a common objective of collecting due taxes and spending those taxes in a fair and equitable manner. [14246/97]

Michael Bell

Question:

578 Mr. Bell asked the Minister for Education the plans, if any, he has to increase or revise the income qualifications for grants and fees for third-level education from gross income to net income; and if he will make a statement on the matter. [14556/97]

Minister for Education (Mr. Martin):

I propose to take Questions Nos. 544, 545, 546 and 578 together.

The Local Authorities (Higher Education Grant) Act, 1968 provides for the award of grants by local authorities for the pursuit of third level studies based, inter alia, on compliance with means test limits that may be prescribed from time to time by the Minister for Education with the consent of the Minister for Finance. The Act also provides that means shall be calculated in such manner and by reference to such matters as may be specified from time to time by the Minister for Education with the consent of the Minister for Finance.

The specfic means test arrangements adverted to by the Deputies have been in operation since 1983 and are applied nationally. It would not necessarily be anomalous to have different criteria applied for the purposes of assessing individuals for tax and for the purposes of allocating limited resources as fairly and equitable as possible. For example, certain forms of income are exempt from tax to encourage particular activities. It is also important to have regard to the fact that net income is the result of personal financial decision making. Assessment of gross income avoids discrimination on the basis of such personal financial decisions.

I recently announced that arrangements have been made to examine the question of rationalising the various student support schemes and having them administered by a single agency. A group has been established to examine the issues involved and to report back. Means testing arrangements, including issues such as those raised by the Deputies, will be examined as part of the group's work.