I propose to take Questions Nos. 502 and 503 together.
The Deputy will be aware that the programme of legislative and administrative reform of student grants is being provided for within the framework of the Student Support Bill. This will facilitate progress on the development of a single unified grant scheme and the reform of grants administration. A number of amendments to the Bill in relation to legal and policy issues which have arisen since Second Stage are being advanced by my Department in close consultation with the Office of the Attorney General. I hope to be in a position to have these amendments finalised in order to move to Committee Stage as early as possible in the current session.
In light of the commitment to put the grants on a statutory footing, I am anxious to provide a statutory basis for all student grants, pending transition to new administrative arrangements. This transitional period will necessitate retention of the existing administrative structures in the immediate term. In bringing amendments to Committee Stage, I will therefore be endeavouring to provide for existing administrative arrangements for this transitional phase, while progressing to a single scheme of grants as provided for in the Bill at the earliest possible date.
In the context of the Government's wider programme of public service reform, I am also re-assessing organisational options for the grants administration function in the longer run, with a view to revisiting the current proposals provided for in the Bill. Possible options for a more significant centralisation of functions are now being explored with a view to streamlining operations and maximising administrative efficiency. This examination is being undertaken as part of a business process re-engineering exercise being conducted under the Transforming Public Services agenda. The staff of the Higher Education — Equity of Access section of my Department who are involved in the grants reform process are also engaged with the business process re-engineering exercise. In addition, the Department of Finance is providing assistance to my Department in conducting this exercise.
Transition to the new arrangements will depend on a number of factors, including:
Passage of the Bill
Commencement of the legislation
Completion of the regulations providing for the new single scheme
Development of new business processes through technical working groups
Development of a new IT system for the operation of grants
Other organisational and implementation requirements
Given the timelines and other implementation factors involved, it is necessary to continue with the existing arrangements for the 2010/11 academic year.
While it is not possible to say definitively at this point when the transfer of the new administration arrangements will take place, the situation is being kept under continuous review in the context of progression of the legislation and other implementation factors.
My Department is working closely with the VECs, local authorities and other relevant stakeholders to develop a number of initiatives to support more effective delivery of student grants in the interim, including matters relating to application, assessment and payments arrangements. For example, work is currently being advanced on the development of an on-line applications facility in conjunction with the VEC and local authority sectors and on examining the possibility of introducing this for 2010. Other measures will include:
Earlier approval of the grant schemes for 2010;
Introduction of a new, more simplified application form for 2010;
Examining possible extension of the pilot electronic funds transfer (EFT) payments system introduced in 2009/2010;
Development of common renewal/re-assessment processes.