Vol. 516 No. 2
4 Mr. Naughten asked the Minister for Education and Science if he has assessed the size of the gap between the higher education maintenance grant and the cost of supporting a student in college; and if he will make a statement on the matter. [7260/00]
My Department has not carried out research into the cost of maintaining a student at a third level college. The statutory framework for the maintenance grants scheme, as set out in the Local Authorities (Higher Education Grants) Acts, 1968 to 1992, provides for higher education grants in order to assist students to attend full-time third level education.
For the 1999-2000 academic year, the rates of maintenance grants payable are set at £1,690 at the non-adjacent rate, and £676 at the adjacent rate. In relation to the value of the grant, I intend to follow the practice of recent years and increase third level maintenance grants in line with inflation as measured by the change in the consumer price index for the period mid-February to mid-February each year. I also intend to continue the practice in recent years of increasing the reckonable income limits in line with movements in the average industrial wage.
This approach will ensure that the real value of maintenance grants is maintained. The question of providing further additional increases to the value of maintenance grants can only be considered having regard to overall resource constraints and other competing demands in the education sector. I would point out that 40% of third level students qualify for maintenance grants.
The Government has introduced a maintenance grants scheme for students attending post-leaving certificate courses with effect from the 1998-99 academic year. Furthermore, the position of mature students in general, and independent mature students in particular, has also been addressed under the student support schemes. The rate of maintenance grant payable is determined by reference to the distance from the student's normal residence to the school which she or he is attending. In the case of independent mature students, their normal residence is taken as their address while in attendance at college. Accordingly, a large proportion of independent mature students only qualified for the lower rate. With effect from the current academic year, all eligible mature students will qualify for the higher non-adjacent rate of maintenance grant.
The need to target resources at those most in need is well recognised and underpins the Government's approach to tackling disadvantage. There is provision within the national development plan for a third level access fund totalling £95 million over the period of the plan. This fund will provide for additional financial support for disadvantaged students on top of the existing maintenance grant schemes. My officials are developing proposals for my consideration in relation to these financial supports and I will announce the details of the new arrangements in due course.
I thank the Minister for his reply but he could have saved his breath and said "no". It was a simple question. Why has the Minister not assessed the size of the gap between the higher education maintenance grant and the cost of living? Is it not a fact that the consumer price index excludes the cost of rent? In recent years rents in Dublin and other cities have risen by 100% but that is not being taken into consideration in maintenance grant increases. Given that fact, does the Minister believe that a 2% to 3% increase in the maintenance grant is adequate?
The approach the Government has taken in relation to the market generally and the rental situation in particular, is to provide tax incentives which will be effective in providing additional accommodation. Expenditure on maintenance grants for 1999 under the three third level schemes amounted to approximately £63.5 million.
The Government has targeted people in areas of disadvantage and is providing additional funds to tackle disadvantage and access for people from those areas. Decisions in relation to this and an additional £95 million will be forthcoming in the near future.
Will the Minister answer the question I asked? Why is this not being assessed? Is it not a fact that the average cost for a student outside Dublin living in the capital is £5,000? Is it not true that the consumer price index does not include rent? On the Minister's point on tax incentives, the current grant is approximately £1,600 while the price of student accommodation in on-campus residences in UCC can be as much as £1,943, with a 7% increase in the coming year, while in NUI Galway such accommodation costs £2,254. The grant does not cover the cost of accommodation, never mind the additional expense of keeping a student in college.
As I said, a great deal of additional money has been provided, but from the point of view of parents, a great deal of money has been invested in the removal of fees, which has been very substantial and a huge aid.
Answer the question.
The next step was to aid students on PLC courses and mature students and that is where the money has gone.
The Minister should answer the question about the consumer price index.
We will now move to Question No. 5.
I understand the Chair's frustration.
