Seán Ryan (Dublin North, Labour)
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Question 54: To ask the Minister for Education and Science the current position regarding discussions with the Department of Social and Family Affairs and the Revenue Commissioners regarding the introduction of a new higher education grants scheme; the steps being taken to bring these discussions to a conclusion; when she expects the new system will be in place; and if she will make a statement on the matter. [19677/05]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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As I indicated in my reply of 26 April 2005 to Parliamentary Question No. 70, the administration of student support schemes is complex and resource intensive involving the processing and assessment of applications and resulting in the payment of grants to more than 56,000 students annually. Expenditure in 2004 was almost €203 million.

Student support is provided through three means-tested maintenance grant schemes for third-level students. The higher education grants scheme operates on a statutory basis, while the vocational education committees' scholarship scheme and the third-level maintenance grants scheme for trainees operate on an administrative basis. The statutory framework for maintenance grants under the higher education grants scheme is set out in the Local Authorities (Higher Education Grants) Acts 1968 to 1992.

In accordance with the commitment in An Agreed Programme for Government it is planned to have a single unified scheme of maintenance grants for students in higher education in place for the academic year, 2006-07. This will provide for a more coherent administration system that will facilitate consistency of application and improved client accessibility. This is necessary if we are to ensure public confidence in the awards system and the timely delivery of grants to those who need them most.

As the Deputy is aware, my Department has been engaged in ongoing consultations with the key stakeholders such as the Irish Vocational Education Association, the County and City Managers' Association, various social partners and other relevant Departments to map the most logical and effective arrangements for the future structure and administration of the student support schemes. Discussions with the Department of Social and Family Affairs and the Revenue Commissioners have related to their possible contribution to the future shape and administration of the student support schemes.

These discussions have substantially clarified the positions of the stakeholders in the future administration possibilities for the schemes and their possible role therein. I expect to be in a position before the autumn to determine the best strategy to give effect to the programme for Government commitment to the payment of the maintenance grants through a unified and flexible payment scheme.

Whatever new arrangements are eventually decided upon will be provided for in new statutory arrangements through a new student support Bill. This Bill, that will provide statutory underpinning for the schemes, will have as a key objective the promotion of equality of access. I also envisage that the Bill will provide for an independent appeals system. The timescale for publication of the Bill is contingent on the range of issues, the subject of the consultations already referred to.

Jan O'Sullivan (Limerick East, Labour)
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I welcome the fact that there is a Bill on the proposed legislative programme and that the Minister hopes to have some proposals in place by the autumn. I say this in the context of a press statement, dated 10 September 1997, when the then Minister for Education and Science, Deputy Martin, said he hoped to have a system in place from late 1998 to early 1999. This has obviously been going on for a long time. Undoubtedly, it throws up inequalities.

Has the Minister any timescale in mind from September onwards when she expects to be able to implement the proposals? I sought information through parliamentary questions, as did my colleague, Deputy Burton, on the socio-economic breakdown of grant recipients and the latest data we have is from 2002, which is relatively old. Is there any attempt within the Department to collate that information on a more up to date basis?

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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I do not have a more recent socio-economic breakdown. It would be much easier to get that type of information if one body was responsible for collating it. However, that there are so many different groups with so many different schemes and grants makes it very difficult to collate such information. That is why I am determined to move ahead with this. We have already discussed in the House the whole capital allocation basis. If I am to wait for that to be sorted out, we will never get the unified scheme, which I believe is more important. Given the discussions we have had with the Revenue Commissioners and the Department of Social and Family Affairs, we are now in a position whereby they will be able to help us as regards verification and anti-fraud considerations, data protection etc. As the Deputy says, the talks have been going on for some time. However, in terms of IT systems, some bodies seem to be more capable of dealing efficiently with such matters than others. We have to ensure there is improved compliance and that people have confidence in the system. I am reasonably satisfied we have made sufficient progress to be able to make proposals. I hope to have a unified scheme in place for the 2006-07 academic year.

Olwyn Enright (Laois-Offaly, Fine Gael)
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I know the legislation has not yet been published, but does the Minister expect to retain control of this system within the Department of Education and Science or is it proposed to move it to the Department of Social and Family Affairs?

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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Our discussions with the Department of Social and Family Affairs would indicate that it will not end up there. It is important, anyway, that it should be closely linked to the Department of Education and Science. At this stage, I do not envisage the Department taking responsibility for it. Other groups such as the IVEA and the local authorities, are currently responsible for some of the schemes. However, the input of the Department of Social and Family Affairs will be crucial.

Seán Crowe (Dublin South West, Sinn Fein)
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Has the Minister proposals in hand to increase the age limits for those who may apply under the vocational scheme? The current age is 23 and there are strong rumours to the effect that this will be increased to 25. Even with the age 23 limit, both parents' incomes must be taken into account. Some of those with whom I have spoken are mothers of two or three children who left their family homes a long time ago, yet they must track down their parents or get them to fill in a form as part of their applications. Is the Minister examining this issue in terms of the accessibility of the scheme? While the age threshold may have been sensible eight years ago, it appears antiquated given new types of family formation and so forth. We should encourage, rather than discourage, this group of people to enter education.

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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The legislation will provide for the unification of the scheme. Obviously, it would not be appropriate to be too prescriptive in legislation as it would need to be amended each time one wanted to change limits, ages and so forth. It is not envisaged, therefore, that such issues will be part of the legislation. We are conscious, however, that times are changing and different needs must be addressed. The Higher Education Authority and National Office of Equity of Access to Higher Education are also examining this issue.

Jan O'Sullivan (Limerick East, Labour)
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I have been told of students queuing in colleges to collect grants for long periods only to find their grant is not available. Will the Minister consider the possibility of providing for money to be transferred directly from local authorities or vocational education committees into students' bank accounts?

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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There is no doubt that some councils and VECs are much better than others in this regard. Students have been left waiting even beyond Christmas for the initial grant. When I told one student president that I was aware of a student who, in years gone by, survived in Letterkenny on porridge from October to Christmas, he told me students are surviving on pasta which one can now buy for €5 for five kilos.

The current position is outrageous because some counties are slow to transfer grants. A unified scheme will mean a specific body will have responsibility which can then be overseen in the proper manner. I am anxious in the interests of students to have an accountable and fair system, particularly given the number of students — 56,000 — affected. It is important, therefore, that the €203 million spent on grants each year is properly spent and students receive them when they need them.