Michael Brennan (Progressive Democrats)

We are still examining the implications of the court case and are receiving advice on it from the Office of the Attorney General. I recall that 173 people signed up for that case. A determination has been made in the case of one of these people. In that instance, the Department lost the case and is, therefore, required to make repayment to the individual in question. I understand the court found that the Department is required to make repayment for the summer of 2003 because that particular student had a particular expectation.

I stated yesterday in the House that, pending advice from the Attorney General, I would not be inclined to appeal such a judgment. Obviously, I must wait for the advice of the Attorney General in the event that there are broader implications. Approximately 5,500 people were receiving the back to education allowance in 2003 and Senator Terry's colleagues in the Dáil suggested that these people were entitled to something. However, I must be very sure-footed about the legal issues at play here because schemes end and conditions change. I would be very fearful of opening up a situation whereby when a scheme is ended, everybody who did not get to the gate in time, for whatever reason, had expectations they could show were legitimate. Such a scenario would be an additional burden on the State. I wish to be circumspect about the legal issues.

Senator Terry's colleagues asked me to revisit the issue itself. The issue is whether the back to education allowance, which is approximately the same rate as unemployment assistance, should be paid for the summer months. The practice of paying the allowance during the summer ceased in 2003. I do not have any immediate intention of restoring it but, like all such matters, I like to keep an open mind and discern what is practical and necessary. It is the old question of whether once I have this money, I pay it to students in the summer or use it to improve the carer's allowance or pensions or alleviate child poverty. I suppose some students could claim that they study during the summer and, therefore, need the allowance. There are six people in my family and I never witnessed any of them study in the summer. Possibly other households have different experiences and certain people can make a case that they study during the summer. However, there is no reason they cannot obtain employment. If they cannot obtain employment, they are entitled to claim unemployment assistance. I suppose the point was that when they received the back to education allowance, which was supposed to maintain them while they were studying, they could work and receive the allowance at the same time during the summer. I do not know how they could work if they were also studying.

We must be careful because we cannot throw money around too lightly. I will keep an open mind on the matter, although I do not have an immediate intention of restoring it for the summer months because people receiving the allowance can claim unemployment assistance in the summer if they cannot obtain work. The majority of people who claim the back to education allowance are fairly successful in obtaining employment.

We should remember that virtually all of the 150,000 people who came to Ireland last year from the ten new EU member states obtained employment. The only exceptions were approximately 100 people who received unemployment assistance or satisfied the habitual residency rule. This is the kind of economy we live in. Therefore, the idea of paying the back to education allowance in August must be examined very carefully. I will keep an open mind on the matter but I do not intend at this point in time to restore the payment of the allowance during the summer.