Mary Coughlan (Donegal South West, Fianna Fail)

As I am sure the Deputy will appreciate, I am not in a position to comment on budgetary proposals. Speculation on any decision in respect of student registration fees is just that - speculation.

The student services charge is levied by the higher education institutions to defray the costs of examinations, registration and student services. Students eligible under the means-tested student grant schemes are not obliged to pay this charge. It is paid on their behalf under my Department's student grant schemes in addition to any maintenance grant and tuition fee support to which they are entitled. Some 43% of undergraduate students fall into this category and do not pay the charge. The Government is conscious, however, that for those in income groups just above the grant eligibility threshold, any increase in the charge would be an important affordability consideration. Research indicates that a range of complex factors which extend beyond financial barriers - such as societal and cultural issues, parental and teacher expectations and previous academic attainment - also have an impact on the participation rate of various income groups.

The growth in participation in higher education has been significant during the past three decades, with the number of new entrants almost trebling in that period. The expansion of higher education opportunities continues to be an important policy priority for the Government. In the past three years, higher education institutions have sought to respond to the increases in demand from school leavers and adults returning to education, including unemployed people, by increasing the number of full-time places on offer and also by expanding part time and other flexible types of provision. The Government is committed to ensuring that opportunities to engage in higher education continue to be made available to potential learners and that access to higher education will continue to be determined by a student's ability and not his or her financial circumstances.

A key challenge for the development of the sector will be in enabling it to meet future demand on a sustainable funding basis, without compromising on quality. A widening of the funding base for the sector - to reduce the relatively high level of dependence on the Exchequer - is one of the issues to be considered in that context. The terms of reference for the high level group which was established to develop proposals for a new national strategy for higher education provided for an extensive examination of all issues relating to the future development of the higher education sector. The group has now completed its work and I am consulting my Government colleagues in respect of the report. The timeframe for publication of the report will be decided in that context.

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