Vol. 483 No. 3
420 Mr. R. Bruton asked the Minister for Education and Science the cost of the higher education grant in 1997 and in 1998 had it not been decided to bring forward a sum of £68 million into 1997; the reason this has been done; and the effect, if any, on future years in this regard. [20537/97]
I will be seeking a sum of approximately £70 million by way of a Supplementary Estimate for 1997 to enable me to bring the recoupment of payments made by the local authorities under the higher education grants scheme to a current year basis.
I am proposing to take this approach to bring practice into line with the provisions under the Local Authority (Higher Education Grants) Acts, 1968-92, and to alleviate cash flow shortages which the authorities currently experience as a result of the present arrangements for recoupment in the year following that in which the payments are incurred.
In the context of the Supplementary Estimate, I am also proposing to put local authorities in funds to enable them to issue maintenance grant payments to students before the end of this year in respect of the second term. This action is in response to difficulties being encountered by students at the beginning of each term and is intended to facilitate the alleviation of such problems.
The steps I am taking to bring recoupment to local authorities onto a current year basis will ensure that the Exchequer is not carrying a significant liability to the authorities at the end of each financial year.
