Dáil Éireann díospóireacht -
Thursday, 13 Jun 1991

Vol. 409 No. 8

Written Answers. - Third Level Education Grants.

Jim O'Keeffe

Ceist:

24 Mr. J. O'Keeffe asked the Minister for Education if her attention has been drawn to the fact that in applications for third level educational grants by children of farmers the interest on money borrowed for land reclamation, purchase of land or farm buildings is not now being allowed by Cork County Council in the compution of reckonable earnings even though it is allowed by the Revenue Commissioners; the reason this new approach has been adopted; whether she has directed that it be applied nationally; if she will reconsider the matter and allow business expenses such as interest on borrowed money to be allowed in the same way as it is allowed as a Revenue expense; and if she will make a statement on the matter.

Minister for Education (Mrs. O'Rourke)

For the purpose of the scheme reckonable income means gross income from all sources, less any sum paid by way of contribution to a superannuation fund, and excluding also children's allowances under the Social Welfare Acts, holiday earnings of the candidates and payments under the family income supplement scheme.

For self-employed persons the income to be reckoned includes the profits from business/farming activities, including lettings of land, equipment etc., after deducting expenses incurred in earning these profits. When reckoning expenses which may be taken into account as expenses incurred in earning profits no amount may be included in respect of depreciation, including capital allowances such as on plant or equipment, expenditure on the purchase or construction of farms/farmhouses, farm buildings or expenditure on the construction of business premises.

The basis for assessment of reckonable income of self-employed persons, under the higher education grant scheme for the 1990-91 academic year is in keeping with the arrangements I have outlined above. These arrangements, including those mentioned above, have been in operation since 1983, are applied nationally and are broadly in line with the means testing provisions operated by the Department of Health in relation to applications for medical cards.

There is no obligation on local authorities to accept tax assessments by the Revenue Commissioners as the sole criterion for determining reckonable income-eligibility for higher education grants.