Jim O'Keeffe
Ceist:11 Mr. J. O'Keeffe asked the Minister for Education and Science the reason he has proposed the possible reintroduction of fees for third level students. [10209/03]
Other Questions. - Student Support Schemes.
Olwyn Enright
Ceist:18 Ms Enright asked the Minister for Education and Science when he expects the report into third level funding to be published. [10211/03]
Eamon Ryan
Ceist:21 Mr. Eamon Ryan asked the Minister for Education and Science if the report on third level education will be published before the Easter recess giving clarity to Deputies and students regarding his likely plans for the reintroduction of third level fees or increased registration fees. [10244/03]
Joe Costello
Ceist:26 Mr. Costello asked the Minister for Education and Science if he is considering replacing the current third level students grant system with a students loan system; and if he will make a statement on the matter. [10189/03]
Breeda Moynihan-Cronin
Ceist:50 Ms B. Moynihan-Cronin asked the Minister for Education and Science when he expects the review of student support provisions he has commissioned to be completed, especially having regard to the need for those planning to attend third level institutions in the academic year 2003-04 to be aware of the support provisions which will be available; and if he will make a statement on the matter. [10199/03]
Dan Neville
Ceist:59 Mr. Neville asked the Minister for Education and Science the consultation he intends to carry out following the publication of the report into third level funding; and the groups which he intends to consult. [10212/03]
I propose to take Questions Nos. 11, 18, 21, 26, 50 and 59 together.
A review of student support provisions is being undertaken within my Department with the aim of ensuring that the benefits of the substantial investment being made are maximised. Officials of my Department are conducting the review. However, some issues require the engagement of external expertise. In this regard, the Economic and Social Research Institute has undertaken work to enable my Department to estimate the cost of various options.
In conducting the review my Department officials are having regard to international experience and relevant reports and policy documents, including the report of the action group on access to third level education which was launched in July 2001. I expect that the outcome of the review by my officials will provide me with a range of possible options which will seek to ensure that the available funding is targeted in a manner which achieves maximum impact from the point of view of equity of access to third level education.
It is anticipated that the review will be submitted for my attention in the near future. As I indicated to the House previously, I recognise the need to avoid, as far as possible, uncertainty for students and their parents. It is my intention to decide within the coming weeks the arrangements and support provisions which will be in place for students for the 2003-04 academic year. When I have had an opportunity to consider the contents of the review I will bring the matter to Cabinet. Following its consideration by Government, I will make a determination as regards publication and consultation arrangements, as appropriate.
My first question relates to the loan system. I am aware that the report has not been published and that the Minister is not aware of its content. However, has the Minister given thought to how a loan system would be administered? I am not talking about any particular models. Has he considered whether it would be more beneficial to assess it on the basis of the parents' income at the time the student starts to attend college, the income earning potential of the student depending on the course he or she chooses or the actual earnings of the student after he or she completes college? Obviously, one can start a course which offers the prospect of a good income but the opposite can occur.
What groups does the Minister intend to consult following publication of the report? He has mentioned who was involved in preparing the report but will he have widespread consultations? I am inquiring particularly about USI but also about Macra na Feirme, which has serious concerns about comments that were made not by the Minister but by others.
The amount of consultation will depend on how much of a change will be recommended in the report. I have looked at various loan systems and the newspapers have given coverage to a number of different models. In general, there is no means test for a loans system. Anybody who is going to college can apply for the loan. They do not have to but they can apply.
There are common methods of payment in most of the schemes of which I am aware. A certain income level is decided on, which is usually around the average industrial wage. When the student has graduated and earns above that limit, he or she starts repaying. In the Australian system, for example, repayments are 1%, 2% or 3% of income, depending on how much above the limit the income is. In some cases the loan scheme is administered by a separate loan agency and in some others it is administered on the basis of a PPP, where banks tender for the opportunity to provide loans. The interest rates charged in most cases are usually set at the rate of inflation. It is not more than that or the normal bank rate of interest repayment. That is a broad outline of how most of the loan systems I know of operate.
Is it the Minister's intention or plan to have either a loan or a fees system in place for the coming academic year? Has he reviewed the Australian system? That system has failed where equity is concerned. Is it not true that it has failed to have an impact? It has had the opposite effect in that people are afraid of getting into debt and have decided not to attend third level as a result of that fear.
If we were to opt for the loan system, it would take longer than next September to introduce it. The UK is changing its system to something akin to a loan system and has provided for a lead in time up to 2006 before it does so. The Australian system has not failed. The figures show that the level of participation across all socio-economic groups increased substantially. The other myth that is perpetuated is that there is huge non-repayment of loans. The figure is actually 12.5%. That is made up of people who do not reach the income level that triggers repayment, people who die and people who emigrate. The fourth category generally comprises women in the home who, with the intention of self-improvement, do a degree but have no intention of working outside the home. There has been an increase in participation across the board in higher education in Australia since the scheme was introduced.
Would the Minister be concerned that a system similar to the Australian one would lead to the emigration of people with skills that are needed in this country? Many young people go abroad for a year or two after they qualify but they usually return. Will the Minister research the possibility that a system modelled on the Australian one would encourage young people to leave this country with their skills?
That would be a factor in considering whether to introduce the scheme. Obviously, the Department of Finance would not be happy if loans were given out and 30% or 40% of the students decided to emigrate and not repay them. That would have to be taken into account and I am sure the review group will do that.
People emigrating to avoid repayment has not been a huge factor in other countries so far. There are ways and means of avoiding it too. Somebody might guarantee the loan and many of the people who emigrate tend to return. One of the benefits of a fees system is that it would be possible, in cases where particular skills are needed, to skew the system to ensure that students who went into those courses did not have to pay fees. There are pros and cons with all methods. I am sure the matter raised by the Deputy will be taken into account in the review.
The Minister said there will not be a loan system in the forthcoming academic year. Does that also mean no fees will be introduced in the forthcoming academic year? Perhaps he will clarify that there will be no fees and no loan system.
If we were to opt for a loan system, I do not anticipate that it would be ready before the end of the year. I did not make any comment about fees.
What is the situation regarding fees?
It is time the Minister told the parents.
When I have the review, I will let the Deputy know.
The Minister does not know.