Peter Fitzpatrick (Louth, Fine Gael)
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In recent months I have assisted a family in Dundalk with a Student Universal Support Ireland, SUSI, application. This family has two children in third level education and they face a dilemma, as both children's SUSI applications, SUSI appeals and appeals to the student grant appeals board have been refused. We have now been told the process has gone as far as we can with SUSI. The family must now come to terms with the fact that their children have to leave college because the family cannot afford the fees and expenses. Unfortunately, the father's business went bust and he has been declared insolvent, with the family entering into a personal insolvency arrangement, PIA. The mother's income, which is the sole income of the household, is now an allowance from her salary, with the remainder going to the PIA to cover debts. The family does not have access to the amount that SUSI has calculated as income and they are working from extremely tight allowances, where every cent is accounted for in the PIA. The husband cannot claim social welfare as he was self-employed.

The response from the student grant appeals board states:

There is no provision under the student grant scheme to provide for any exceptions to those involved in the process of insolvency. The assessment of means is applied equally to everyone. This ensures all applicants have the same starting points and eliminates any distortion which might arise from the different individual spending decisions.

This is very unfair on the family as they are not equal to other applicants and they do not have the same starting points as all other applicants. This family should be assessed on the allowance only, as it is the only money they have. If that were the case, the family would qualify for the full SUSI grant.

It is also unfair that the board states this "eliminates any distortion which might arise from different individual spending decisions". This family's individual spending decision is no longer theirs, as every decision is made for them, with the allowance from the bank right down to what they can spend on groceries. The comment is very unfair. I have no interest in playing the blame game and we all know the difficulties in dealing with banks. I am more interested in what my Government can do for this family and families in similar positions. The Taoiseach speaks about rewarding people who get up early in the morning and go to work, and this family is an example. The family members are hard working. The wife is a hard-working professional and the husband was an entrepreneur who, due to unfortunate circumstances, has been left in this position. They want a bright future for their children. These people could have gone down the route of declaring bankruptcy and living on the State, receiving free education, social welfare, medical cards etc., but this was not an option. The family wants to repay its debts.

In the Minister's previous role with responsibility for jobs and enterprise, he encouraged people like this family to do well in business. It is vital that the Government helps families when business does not go to plan. My Government needs to assist our entrepreneurs at all stages as they are valuable to our economy. This is one of the nicest families I have come across in my time in politics and the stress being faced by them is unimaginable. The parents have been losing sleep and carrying guilt because they cannot assist their children in obtaining an education, as every parent wants for their child. Their children will have to drop out of college after working so hard to gain places in their respective colleges. The family is also worried about banks that will not allow them to alter the allowance in any way. This is affecting their overall health and particularly their mental health. They are exhausted, stressed and understandably depressed. The mother was in my office and broke down, telling me, "Peter, there is no more I can possibly do. We have let our children down."

In this day and age, no family in Ireland should have to face this problem. I ask the Minister to insert a provision under the student grant scheme to provide for exceptions for those involved in the insolvency process.

Richard Bruton (Dublin Bay North, Fine Gael)
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I certainly sympathise with the case outlined by Deputy Fitzpatrick. The difficulty I have is that SUSI is a national statutory-based scheme and its allocation of student grants is based on an assessment of gross income. That assessment is applied uniformly in all cases. Where people have other outgoings, such as a mortgage or any other payment, they are not deducted. It is not a net means test and it has always been based on gross income. People might argue that it should consider net income in certain circumstances but it does not. It is applied nationally in that way and there is no special arrangement for people in insolvency, as the Deputy outlined in the comments he made. SUSI treats this in the same way as other means-tested arrangements and there are no special means tests available through the Department of Employment Affairs and Social Protection, for example, dealing with insolvency cases. Again, it is income that is assessed and allowance is only made for tax paid or similar items.

Although it is not in my area, it is my understanding there is an arrangement whereby a family means requirement is carried out before the personal insolvency agreement would be arranged. Within that process I understood there was an obligation to ensure provision was first made for children, including cases where young people were in college. I do not know if that assessment of means was made before finalising what was deemed to be a reasonable contribution to the debt. I do not know if it failed to take account of the fact that children were in college.

The only scheme I can point to within my Department is where students in third level institutions experiencing financial need can apply for support under the student assistance fund. This helps students in a sensitive and compassionate manner who may otherwise be unable to continue their studies due to financial circumstances. Information on that fund is available through the access office in the third level institution being attended. The fund is administered on a confidential and discreet basis. This year we increased the allocation to the fund to assist access for students facing hardship.

Unfortunately, the system under SUSI is statutory-based and it takes into account gross income. I do not have the authority to waive those provisions for any individual case. There is the possibility of appeal but that is still on the basis of existing legislation. It seems the only direction I can suggest to Deputy Fitzpatrick is the student assistance fund. Has there been a failing in the personal insolvency agreement in considering the outgoings of the family in respect of the children's education? I do not know if that can be examined under the Insolvency Service of Ireland arrangement.

Peter Fitzpatrick (Louth, Fine Gael)
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I understand that in SUSI guidelines and rules there is no provision under the student grant scheme to provide any exceptions to those involved in the insolvency process. That is why I have brought this matter to the Minister's attention as a Topical Issue matter. I hope I am not wasting my time. I am asking what the Government can do for this family, which needs help. I am convinced that with the stroke of a pen, this family and those in a similar position could have their problems resolved. As a previous Minister with responsibility for jobs and enterprise, he can understand their position. The students' father does his best and the mother is working her fingers to the bone to pay off debts. The two children are being deprived of an education. This Government has the opportunity to put this right. The family has been no burden to the State and this Government cannot deprive these children of an education.

The Minister is the last hope for these children. We speak about homelessness, health and education and, health aside, the most important thing for any family is their education. I am pleading with the Minister. Many people have the same problems as this family in Dundalk and many kids will not get the opportunity to get a third level education. This Government has been through a recession.

The people of Ireland have helped this Government get to where we are at the moment. We cannot deprive these two children of an education. I will give the Minister the address and mobile number of the mother, and I would appreciate it if he would contact her and tell her, her husband and two children that this Government will look after them. This family deserves it. I am convinced that with the stroke of a pen and with the authority the Minister has we can help these families. This mother came into my office and she was pleading for help. I know that she would sacrifice anything for the education of her children. I do not think this family should have to deal with this at the moment. I am pleading with the Minister to do something for people in insolvency. We are talking about mental health problems and depression. This family needs help. I have been a Deputy for seven years and I have never pleaded with a Minister to help anyone in the Dáil before. I am pleading with the Government to help this family.

Richard Bruton (Dublin Bay North, Fine Gael)
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As I have outlined, there is no provision for ministerial discretion in this scheme. This is a statute-based scheme. SUSI was appointed to carry out the assessments, and it does so under the provisions of the scheme. It is not open to me or indeed to anyone else to, at the stroke of a pen, change the operation of that scheme. I draw the Deputy's attention to the student assistance fund, which is administered in each college. It has funding available to support, in confidential way, the position of any individual family. That has to be decided by the administrators of that fund on an individual basis, but it is designed to meet situations of particular hardship. The Department makes provision for that fund each year, and I will make arrangements to send the details of that fund to the Deputy.