Seán Ryan
Question:1118 Mr. S. Ryan asked the Minister for Education and Science the proposals he has to increase the maintenance grants and qualifying thresholds for third level grants; and if he will make a statement on the matter. [30424/00]
Written Answers. - Higher Education Grants.
Frances Fitzgerald
Question:1293 Ms Fitzgerald asked the Minister for Education and Science if he intends to review the student maintenance grant payments and qualifying thresholds. [2325/01]
Enda Kenny
Question:1303 Mr. Kenny asked the Minister for Education and Science the conditions and rates of payment governing third level higher education grants as applied for the year 2001; the changes made in the scheme compared to the 2000 scheme; the rate of increase in the grant; his views on whether this is adequate in view of the increases in housing and accommodation costs, particularly in larger cities; and if he will make a statement on the matter. [2436/01]
I propose to answer Questions Nos. 1118, 1293, and 1303 together.
The statutory framework for the maintenance grants scheme, as set out in the Local Authorities (Higher Education Grants) Acts, 1968 to 1992, provides for means tested higher education grants in order to assist students to attend full-time third level education.
My approach has been to follow the practice of recent years and increase the reckonable income limits in line with movements in the average industrial wage in the previous year. I approved an increase of 5% in the reckonable income limits for the 2000-01 academic year. This exceeded the increase in the average industrial wage for the period March 1998 to March 1999, which was 4.5%. I also increased by 5% the allowance by which the income limits may be increased in respect of other family members pursuing a course of study.
Similarly in relation to the value of the grant, the practice in recent years has been to increase the level of maintenance grants annually at least in line with inflation. Last June, in line with this policy, I announced increases of 5% in the rates of maintenance grant. The reference value for inflation is the annual percentage increase in the CPI to mid-February 2000. The increase of 5% in grant rates for 2000/01 was higher than the reference value, which was 4.3%.
I announced late last year that I was setting up a special project team to carry out a comprehensive review of every aspect of the maintenance grants, and other student supports, to ensure their relevance to the needs of present day third level students. This review will include the level of grants, the methods by which they are paid, eligibility and income limits, accommodation needs, student support services, the most suitable paying agency, the provision of an appeals system, student loans and taxation measures. Issues relating to the implementation of the team's recommendations will be addressed when its report has been completed.
With regard to rent 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 as such represent a targeted response to the underlying issue of an accommodation shortage. Architectural planning for the project referred to by the Deputy is progressing. The grant of planning permission for the extension is currently awaited. When this has been received, the matter will be progressed further.