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Dáil Éireann debate -
Thursday, 9 Nov 2000

Vol. 525 No. 4

Written Answers. - Higher Education Grants.

Willie Penrose

Question:

152 Mr. Penrose asked the Minister for Education and Science the reason a new grant deal top up for up to 10,000 less well off students, whose families are on means tested supplementary welfare, and which was clearly indicated in newspaper reports in August 1999, would benefit these students by up to £1,000 each, has not been implemented to date; if it is still his intention to introduce an additional top up grant of this magnitude for these students, particularly in view of the escalating costs of accommodation for these students who live away from home; and if he will make a statement on the matter. [25314/00]

There is provision within the national development plan for a third level access fund totalling £95 million over the period 2000 to 2006, aimed at tackling under-representation by students from disadvantaged backgrounds, mature students and students with disabilities to third level education. The objective of this measure is to facilitate and to improve access to the labour market for the beneficiaries whilst improving their long-term employability. On 14 September 2000 I appointed an action group on access to third level education to advise me on the development of a co-ordinated framework to promote access by students from the three target groups. The group will advise on the specific interventions which would be most effective in making further progress in this area.

The establishment of this group is in line with a commitment in the Programme for Prosperity and Fairness.

The group will consider, inter alia, advising on the development of targeted interventions. It is anticipated that the focus of any recommended interventions will centre on increasing representation of the three target groups, including students from disadvantaged backgrounds, at third level-PLC level.

As an indication of the Government's support in promoting equity in access, and as an initial step, pending the findings of the action group, I have announced the introduction of a special maintenance grant payable to disadvantaged maintenance grant holders, targeted at those most in need. The full rate of the special maintenance grant will increase from £1,775 to £2,000 for students residing more than 15 miles from college and from £710 to £1,000 for students resident within 15 miles of college.
The first instalment will be made to eligible students early in 2001 when the additional funds become available. This was made clear when I announced the increase. I have indicated that I would expect that up to 10,000 students will benefit from this measure. This is, of course, a tentative estimate and the actual number of students to benefit will depend on the outcome to the action group's work. The group's terms of reference specifically require that it advise me,inter alia, on the identification and tracking of the target groups.
The action group will advise on the operational details of the measure and, in the meantime, it is not necessary for grantholders to apply for the special rate of maintenance grant. Once details have been finalised, arrangements will be made by my Department to ensure that all qualifying grantholders are placed on the special rates of maintenance grant.
With regard to accommodation costs, in recognition of the difficulties being encountered by students and following consultation with third level colleges, the Government has introduced special tax incentives to encourage the provision of student rented residential accommodation in the 1999 Finance Act.
The availability of tax incentives in the past resulted in the provision of a significant number of student residences. As the tax relief will be available for expenditure up to 31 March 2003, the opportunity exists to create significant additional accommodation for third level students. As indicated in the Programme for Prosperity and Fairness, the Government will be evaluating the impact of these tax incentives and will consider further action in the light of the results of the evaluation.
These tax incentives are intended to increase the availability of dedicated student housing and represent a targeted response to the underlying issue of an accommodation shortage, rather than an across the board increase in grant levels which, at a considerable cost, would have no direct impact on helping students to compete in the rented accommodation sector.
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