It had been the practice to recoup the payments made by the local authorities under the higher education grants scheme on a preceding year basis. However, I obtained the necessary amount by way of a Supplementary Estimate in December, 1997 to bring the recoupment arrangements to a current year basis. Accordingly, my Department recouped local authorities their expenditure on the scheme for the financial year ended 31 December, 1997 in 1997. I took this approach to bring the practice into line with the provisions under the Local Authority (Higher Education Grants) Acts, 1968 to 1992, and to alleviate cash flow shortages which the authorities had previously experienced.
In addition, my Department also made a payment to all local authorities in December, 1997 to enable them to issue the second instalment of maintenance grants for the 1997-98 academic year to students before the end of 1997. This approach was taken in response to difficulties being encountered by students at the beginning of each term and was intended to facilitate the alleviation of such problems.
I am confident that these measures have resulted in speeding up the payment of higher education grants by local authorities. Furthermore, as part of my ongoing review of the higher education grants scheme, I am considering the administrative arrangements for the scheme. As the Deputy will be aware, the report of the Advisory Committee on Third Level Student Support, which was published in February, 1995, found these arrangements to be fragmented, cumbersome and very confusing for grant applicants.