Fergus O'Dowd (Louth, Fine Gael) | Oireachtas source

I am very sorry that I am not the Minister for Education and Skills, but if I were, I would be very happy to be present. The Minister, Deputy Quinn, is unavoidably absent this afternoon. I would not infer that his absence is not without good cause. I am happy to respond to the issue raised on behalf of the Minister.

The Deputy is referring to an announcement in budget 2012 that the means test for student grants will be broadened to take account of the value of certain capital assets as well as income. It is important to understand that the intention behind this approach is to ensure that, at a time of reduced resources, the Government targets valuable schemes, such as the student grant scheme, at those who need them most. The Deputy will know that a considerable body of reports over a number of years have strongly recommended the introduction of a capital test for student grants, particularly on the grounds of equity and fairness.

The Deputy will also be aware that the Minister for Education and Skills set up an interdepartmental working group to examine this issue and that he is due to bring proposals to Cabinet shortly. As the matter is due before Cabinet in the coming weeks, I am not in a position to provide specific details at this time, but any decision taken will be a collective Government decision. I can say emphatically, however, that broadening the means testing arrangements for student grants is not aimed at any particular section of the community - such as farmers - but rather at ensuring that all students are treated equally in the assessment of their or their family's means so that those in need of a grant can get one. I can, therefore, give the Deputy the assurance that he is seeking, namely, that farming families will not be unfairly targeted in any new arrangements. On the contrary, farmers, like all other citizens - be they unemployed, employed, self-employed or retired - whose income and assets fall below a certain level, will continue to be eligible for third level grants for their children.

Last year, the Government spent approximately €336 million supporting 76,600 students through the student grant scheme. That represents 38% of the total number of full-time students in higher education institutions and on post-leaving certificate programmes. That is a considerable amount of taxpayers' money, and no one would argue against the need to ensure that it is being spent carefully and targeted at those who need it most.

It is also interesting to note that the student grant system, where no account is taken of the capital value of savings or assets, is in contrast to other major schemes of income maintenance operated by the Department of Social Protection or supports provided by the HSE for example. The effect of this is that if a person has income below the current thresholds, which is €39,875 in 2013 to 2014 for a full grant and maintenance, but has considerable savings in the bank or a wide property portfolio, his or her child can still qualify for a grant.

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