I thank the Deputy for raising this issue. I understand and empathise with the dilemma he has put before the House.
Entitlement to a grant operates on a graduated basis at present. To qualify for a grant, a candidate's eligible income must be below the appropriate income limit which varies for the level of grant and in relation to the number of dependent children in the family. Different limits apply where there are less than four dependent children, between four and seven dependent children, and eight or more dependants.
Prior to the introduction of the new arrangements in 1992, the income limits were set by the number of dependent children, in excess of two and up to ten dependent children. The income limits varied depending on whether a maintenance grant was payable and if so, whether it was payable at the adjacent or non-adjacent rate and depending on the rate of lecture fee grant payable. These arrangements were cumbersome and difficult for the local authorities to administer, while being extremely difficult for an individual candidate to understand.
The new arrangements simplified the income limits, easing the administrative burden on the local authorities and making the system more comprehensible for candidates generally.
It has been the practice in recent years to increase maintenance grants in line with inflation, as measured by the change in the Consumer Price Index for the period mid-February to mid-February next each year. The inflation figure as provided by the Central Statistics Office for the period mid-February 1997 to mid-February 1998 was 1.7 per cent. The value of the maintenance grant was therefore increased by 1.7 per cent for the current academic year.
The full maintenance grant for the current academic year has been increased to £1,652 at the non-adjacent rate and £660 at the adjacent rate.
It has also been the practice in recent years to increase the reckonable income limits in line with movements in the average industrial wage. The figures are provided by the Central Statistics Office and are computed in each case to March the previous year. The average industrial wage increase for the period March 1996 to March 1997 was 3.2 per cent. The reckonable income limits for the 1998-9 academic year were therefore increased by 3.2 per cent.
This increase was also applied to the allowance by which the income limits may be increased in respect of other family members pursuing a course of study. The definition of eligible courses has also been extended to include those family members attending a recognised PLC course, student nurse training or student Garda training, those participating in certain CERT courses and those attending full-time Teagasc courses in an agricultural college. In the relevant cases the reckonable income limits may now be increased by £2,060 where there are two such children, £4,120 where there are three and so on, by increments of £2,060.
The Deputy will also be aware that last week I announced an improvement in the grants scheme which will mean that mature students will receive a full grant for the first time. This will cost £1.8 million per year.
Further refinement to the present graduated system to provide tapering relief for candidates whose income exceeds the relevant limits would have implications for the administration of the schemes and would also involve the commitment of substantial additional resources. In light of the overall resource constraints, I am obliged to have regard to the relative priority of all proposals for improvements and the many competing demands across the education system.
We are continuing to review the situation. It is an issue of trying to target the available resources to the students most in need. The abolition of fees reduced our manoeuvrability in terms of what we can do with the grants system — there is no point in denying that. Over the past 15 months we concentrated, first, on the introduction of maintenance grants for PLC students, which cost £15 million to £16 million in a full year — this is the first year of operation. Mature students got another quantum improvement, which will cost £1.8 million.
I am looking at ways of doing something on the marginal side and to increase the hardship funds in the individual institutes of technology and universities. That would enable us to help those students who are in really desperate situations. There are very small hardship funds in the colleges at the moment. The budget package for disadvantage allows me to increase the disadvantage funds I have at my disposal over this year, next year and the following year, which will give us more leeway to try to target those students who are very much in need and to allow them to continue their education.
The Dáil adjourned at 9.25 p.m. until 10.30 a.m. on Thursday, 10 December 1998.
