Vol. 482 No. 6
423 Mr. Ring asked the Minister for Education and Science the reason his Department treat depreciation and accrued interest on borrowings in one manner in spite of the fact that the Revenue Commissioners treat it in another manner even though both bodies share the common objective of collecting due taxes and spending those taxes in a fair and equitable manner. [18470/97]
424 Mr. Ring asked the Minister for Education and Science 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 individuals to have their income fairly assessed in determining eligibility. [18471/97]
481 Mr. Naughten asked the Minister for Education and Science the plans, if any, he has to increase the income limits for third level maintenance grants, including assessment on net, rather than gross, wage. [19163/97]
I propose to take Questions Nos. 423, 424 and 481 together.
The Local Authorities (Higher Education Grants) 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 and Science 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 and Science with the consent of the Minister for Finance.
The specific means test arrangements adverted to by the Deputy 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 equitably as possible under the schemes of students support. 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 joint working group involving officials from my Department and the Department of Social, Community and Family Affairs has begun an examination of various options and the possible role of the Department in any new system. Means testing arrangements, including issues such as those raised by the Deputies, will be examined as part of the group's work.
In relation to the income limits for third level maintenance grants, these limits are reviewed on an annual basis and I will consider the question of an increase in the context of framing of the 1998 student support schemes.
