Vol. 509 No. 3
70 Mr. Shatter asked the Minister for Education and Science if he has assessed the situation in accommodation costs for students in the past three years; his estimate of accommodation costs in Dublin; and the implication of these costs on the adequacy of third level maintenance grants. [20046/99]
I am aware that students are experiencing difficulties in finding good affordable accommodation. This difficulty is a subset of the general housing squeeze which has been growing in recent years and is particularly acute in Dublin. I believe that the core issue is a need to increase the availability of dedicated student housing and the resultant release of pressure from the rented sector. Last year, at my Department's request, the Higher Education Authority consulted with the universities on the issue of student housing and the universities have been unanimous in proposing the availability of tax incentives for the provision of student residences on or near campus.
The Government has responded to these difficulties by the provision of section 23-type tax relief for rented residential accommodation for third level students in section 50 of the 1999 Finance Act. The availability of tax incentives in the past resulted in the provision of a significant number of student residences. I understand that a number of colleges are examining proposals for student accommodation in the context of the tax relief arrangements.
I believe that this response is the correct one rather than an across the board increase in grants which, at a considerable cost, would have no direct impact on helping students to compete in the rented accommodation sector.
