Brian Hayes (Dublin South West, Fine Gael)
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Question 38: To ask the Minister for Education and Science his views on the fact that funds generated from third level college registration fees are used to supplement core funding for higher level institutions; and if he will make a statement on the matter. [44461/09]

Batt O'Keeffe (Cork North West, Fianna Fail)
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The student services charge is levied by third level institutions to defray the costs of examinations, registration and student services. The range of services may include such facilities as on-campus medical and counselling facilities for students, access and disability services, careers office services, student facilities, student clubs and societies. It should be noted all students who are eligible for means-tested grants have the charge paid on their behalf by the local authorities or vocational education committees.

As already announced, the Government indicated it was prepared to accept increases in the level of this charge for the academic year 2009-2010 to bring it to a limit of €1,500 in individual higher education institutions. In the previous academic year, the charge stood at €900. The increase in the charge for the 2009-2010 academic year enabled individual institutions to bring the amount contributed by students more into line with the real cost of providing student services in those institutions. This was agreed on the understanding that the revenue generated by the increase adopted by each institution would reflect their requirements in defraying the full cost of items that fall to be funded by the charge.

Where income from the charge did not previously meet the full cost of these services, this required an effective cross-subsidisation by institutions from their general block grant funding. The overall block grant allocations made to institutions for 2010 took account of the anticipated additional revenue available to institutions from an increase in the charge.

Systems of local accountability to students are in place across higher education institutions for the use of resources generated by the charge. The Higher Education Authority has issued a framework of good practice for the provision of student services to the publicly funded higher education institutions. It consists of guidelines to establish an appropriate system of consultation with students in the allocation of funding from the charge and in the determination of student services to be funded from this source with particular emphasis on principles of transparency and accountability.

The authority has written to all institutions on several occasions to ensure correct procedures are in place and to remind them of their function with the student services charge, in accordance with the framework of good practice. I have asked the authority to ensure all institutions are using the full income from the charge for the purpose for which it is intended.

Brian Hayes (Dublin South West, Fine Gael)
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If a college charges €1,500 for student services but only provides €500 for those services, would the Minister describe it as a scam? Would he advise those colleges to repay those students concerned who have been overcharged?

Batt O'Keeffe (Cork North West, Fianna Fail)
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Last year by way of budgetary measures the Government examined this issue. It was the view expressed by all of the higher education institutions that the level of services for which they were paying for students was in excess of €1,500. The Higher Education Authority looked at the accounts of all third level institutions at the time and was satisfied that all institutions were providing services costing in excess of €1,500.

I would view in a poor light any institution providing fewer services than could be paid for with the money it attained from students.

Brian Hayes (Dublin South West, Fine Gael)
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From information we have from the accounts of two universities, University College Dublin and Trinity College, Dublin, we can take it that two thirds of what they charge students is diverted to supplementing their core grants. Does the Minister agree they should pay back the students concerned? Is it not the case the Minister is misleading students - or at worse defrauding them - because he allowed this charge increase by 60% last year? The Minister is presiding over a situation where effectively he has re-introduced fees by the back door.

Ulick Burke (Galway East, Fine Gael)
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Hear, hear.

Brian Hayes (Dublin South West, Fine Gael)
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Will he agree there is no accountability and transparency in this method? Will he also agree the documents put into the public domain by two universities and their students unions show that two thirds of what students are charged for actually supplements the core grant the Minister and the Government have already taken from the universities?

Brendan Howlin (Wexford, Labour)
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Go raibh maith agat. I call on the Minister.

Brian Hayes (Dublin South West, Fine Gael)
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Should those universities repay those students? That is a straight question and does not need a Second Stage speech. Can we have a straight answer to a straight question?

Brendan Howlin (Wexford, Labour)
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Will the Deputy please allow the Minister?

Batt O'Keeffe (Cork North West, Fianna Fail)
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Generally, one would first establish the facts. I have asked the Higher Education Authority, in view of the report that appeared in a newspaper article arising from information supplied by the Union of Students in Ireland, to carry out a survey on all of the accounts presented by third level institutions. I did so to ensure whatever money is collected from students is being spent on the services due to students on foot of the registration fee.

Brian Hayes (Dublin South West, Fine Gael)
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It is not.

Batt O'Keeffe (Cork North West, Fianna Fail)
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Last year, the Higher Education Authority examined all the sets of accounts. The authority indicated to the Department of Education and Science that it was satisfied that all of the institutions were providing a service to this level. In view of the report issued by the Union of Students in Ireland, I felt it appropriate that I ask for an urgent review to be carried out. The Higher Education Authority will report back to me in the early part of the new year to ascertain the position concerning the charge.

Brendan Howlin (Wexford, Labour)
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We will now move on to Question No. 39.

Batt O'Keeffe (Cork North West, Fianna Fail)
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It could be quite possible that the format of response from Trinity College Dublin, for instance, may not be put in strict accountancy order to show the €1,500 is dispensed on each student.

Brendan Howlin (Wexford, Labour)
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I ask the Minister and Deputies to have regard to the Chair. We will take Question No. 39.

Batt O'Keeffe (Cork North West, Fianna Fail)
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I apologise, a Leas-Cheann Comhairle.