Jan O'Sullivan (Limerick City, Labour) | Oireachtas source

I might deal with that issue first, as it was initially raised by Senator Power and everyone else mentioned it when referring to grants. Down the years, the Chairman has conducted a great deal of analysis of Professor Patrick Clancy's reports on who attends college. Since the methodology used in the most recent one was slightly different, I do not know whether it is comparable. The approximately 50% of students who receive grants do not pay that fee, so they are not in the mix, but fees may be a barrier to the ones just above the income threshold. This is an issue of which I am conscious and I thank members for raising it.

As the committee probably knows, the former Minister set up a group to examine the funding of higher education. It is not due to report until next year. I will be up front with the committee, in that I expect I will not be able to do anything about the extra €250 this year. The money is not there. As we mentioned at the start of questioning, the increase is built into the budgetary arithmetic. As such, it was a part of the budget even before I started discussing demographics, etc. When the report is finished next year, we must examine the issue rigorously.

To answer Deputy McConalogue's question, there is financial pressure on colleges. I have met the HEA and the Irish Universities Association, IUA. There is also pressure on institutes of technology, given increased demographics, etc. When we receive the report, we will need to address the contentious and difficult issue of the funding of higher education.

Senators Power and O'Donnell raised questions about banks, the health professions admission test, HPAT, graduate entry and students' difficulties in affording borrowings. I thank Senator Power for the letter I received from her. While it is technically a matter for the Department of Finance as a taxation issue, I will discuss it with the Minister for Finance and other colleagues. As it happens, he and I represent a constituency that has a graduate entry medical school, so we are familiar with the particular cost issues. The HPAT needs to be monitored in the colleges concerned to determine its effect.

Senator O'Donnell mentioned lending by banks. Clearly she feels strongly about this matter. The idea that banks would increase their rates is something about which we would all be concerned. Ideally, if one is borrowing, one should have a sense of what it will cost in future. The Minister of State, Deputy English, and I have stated that we will raise this matter with the banks. Many banks have relationships with higher education institutes. Indeed, some have on-campus offices, etc. With that leverage, we should be able to put more pressure on them to ensure that they do not treat students in a way that is-----

Senator O'Donnell mentioned lending by banks. Obviously, she feels strongly about this matter. The idea that banks would increase their interest rates is