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Dáil Éireann debate -
Tuesday, 4 Feb 2003

Vol. 560 No. 3

Written Answers. - Higher Education Grants.

Seán Crowe

Question:

259 Mr. Crowe asked the Minister for Education and Science if he will reform the third level grants scheme in order that it would take account of the income of a family on a proportional system rather than the current cut off mechanism. [2332/03]

Jack Wall

Question:

282 Mr. Wall asked the Minister for Education and Science his plans to increase maintenance grants for third level students in view of the major increase in rent and letting of accommodation in areas where such third level institutions are sited; and if he will make a statement on the matter. [2724/03]

Pádraic McCormack

Question:

287 Mr. McCormack asked the Minister for Education and Science his plans to increase the third level maintenance grant substantially, to introduce free fees and to increase income thresholds thereby allowing more students to qualify for the maintenance grant; the proposals his Department has for the provision of student accommodation in all third level colleges; if he proposes to reintroduce free medical care for all third level students; and if he will make a statement on the matter. [2785/03]

I propose to take Questions Nos. 259, 282 and 287 together.

At present my Department is conducting a review of student support provisions aimed at ensuring that the benefits of the substantial investment being made are maximised. This review will cover a range of topics relating to the schemes of student support including the level of maintenance grants, eligibility, income limits with respect to the grants, the free fees initiative and will consider various options taking into account international experiences in this field, including the issue of loans.

Officials of my Department are conducting the review. Some issues require the engagement of external expertise. In this regard, the Economic and Social Research Institute will undertake work on a number of issues relevant to the review. Relevant recently published reports will also inform the work of the review group. It is anticipated that the review will be completed in time to give sufficient notice of decisions which will impact on students intending to enter third level education in the 2003-04 academic year.

Decisions regarding increases in income thresholds and maintenance grant levels, or in relation to the schemes of student support generally, will not be taken pending completion of this review. My Department does not provide direct financial assistance for the provision of student accommodation.

In recognition of the difficulties students can experience in obtaining accommodation and following consultation with third level colleges, a special tax incentive was introduced to encourage the provision of dedicated student residential accommodation in section 50 of the Finance Act 1999.

The tax incentive is available for expenditure up to 31 December 2004 where an application for planning permission is received by a planning authority by 30 September 2003. Therefore the opportunity exists to create significant additional accommodation for third level students.

The rent-a-room relief scheme was introduced in the Finance Act 2001. It allows homeowners rent out a room in their homes and have rental income of up to €7,620 a year tax free. The scheme encourages householders to rent rooms to students.

The provision of free medical care for third level students is an issue which is appropriate to my colleague, the Minister for Health and Children, Deputy Martin.
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