Seán Haughey (Dublin North Central, Fianna Fail)

I thank Senators for their valuable contribution to this debate. My overwhelming sense is one of support for this legislation based on a common goal to reform the student grants system. While we are thankful for the service that has been provided to students and parents by the existing grant awarding authorities in the past, we are now concerned with and must look forward to the future.

As demand for student grants continues to grow in the current economic climate, the quality of the service that is needed for the organisation and operation of student grants must improve dramatically to make it accessible, transparent and, most importantly, timely in its response to providing funding to those who otherwise might not be able to avail of further or higher education. In the next 20 years, the demographics show that we can expect a 50% increase in our first-year student intake at third level and the impact of this on our student grant system demands that we have a structure in place which is capable of absorbing the inevitable pressures this surge in student numbers will bring.

Simply put, our student grant administration system must change and be fit for purpose if we are not to ignore the plight of students who currently must negotiate a range of different student grant schemes and in many cases wait an unacceptable length of time to have their applications assessed and paid. In this regard, both the Tánaiste and the Department of Education and Skills fully accept that the delays in processing the student grants mentioned in the debate is not acceptable and this legislation is being enacted to tackle this issue head-on.

Concerns were raised here last week at the length of time that it has taken to bring this legislation to fruition. It is realised that progress on the Bill can appear to have been slow but this was unavoidable for a number of reasons, including the need for additional research on the legal implications for the provisions allowing the Minister to make decisions regarding the approval of institutions and courses for the purposes of the student grant schemes and a Government decision to establish a single grant awarding authority in line with the transforming public services agenda. Senator Ryan recognised the reasons for this delay. Each of these developments required significant legal input and subsequent amendments to the Bill. Because of the importance of this legislation, the emphasis at all times has been on getting it right.

The legislation provides us with the opportunity to overhaul fundamentally the student grants system by enhancing its capacity and responsiveness to the demands being made on it, not only from a changed economic environment but also in the face of dramatically increasing student numbers and the need for it to play its role satisfactorily, both in promoting participation in higher and further education and in providing quality third level education.

It is the intention, with the Senators' help, that this legislation will be enacted in the current Oireachtas session.

By selecting a single grant awarding authority and providing it with the power, where appropriate, to outsource some of its functions, we will ensure a fully equipped and robust body based on a strong legislative footing. By consolidating the four existing grant schemes into one, we will eliminate confusion for students when it comes to applying for a grant. By clearly and unambiguously setting out the details and regulations on a wide range of issues, including the application for and awarding of grants, the responsibilities of students and their parents and spouses, the conditions for grant eligibility and the residency and nationality requirements, we will ensure consistency of approach in dealing with grant applications. By the use of service level agreements with the single awarding authority, we will ensure a continuum of high quality customer service to students and their parents and the application of the terms of the schemes equitably and efficiently throughout the system. By establishing an independent appeals board, we will ensure that objectivity applies in the determination of a grant application appeal. By strengthening the processes on fraudulent claims, which will be policed by the single grant awarding authority, we protect the taxpayer and safeguard funds so they can be targeted at those most in need. By requiring the preparation and implementation of access plans and equality policies in approved institutions, we underpin Government policies to increase access to further and higher education. By including an enabling provision to include part-time courses in the student grant schemes when resources permit, we recognise the changes in the methods of delivery of higher education over the years. I look forward to the real improvement in service that these developments will facilitate, most of all the improvement in the quality of the student experience when dealing with the grant administration process.

I welcome the support for the independent appeals process in particular. This has been a feature as the Bill passed through the various stages of the legislative process.

The timeframe set out in the Bill for appeals is the maximum. It is envisaged the majority of appeals will be considered in a much shorter timeframe and the service level agreements with the single awarding authority to which I have referred and the procedures to be set down for the independent appeals board will reflect this. On Report and Final Stages in the Dáil the Tánaiste and Minister for Education and Skills agreed to reduce the timeframe in which the independent appeals board will deal with appeals from 90 days to 60. This is the maximum timeframe which takes cognisance of the fact that there will be cases in which complex matters may need to be considered and consultation may be required with other parties, including State agencies, to reach a conclusion. Senators will find that much of the latitude provided is to allow a student more time to appeal, if necessary, rather than facilitating the response of the awarding authority or the independent appeals board. The independent appeals board will be introduced during the transitional period in line with the provisions contained in the Bill.

Three other issues arose here last week, the first of which relates to when resources might be available to include part-time courses in the student grant schemes. Unfortunately, it is impossible to predict when this might happen at this time. We know the number of full-time students eligible for grants is increasing significantly and this is likely to be the case for the foreseeable future. We realise the modes of delivery of higher education courses are constantly changing and the student grant schemes must reflect this. Whereas we are not in a position to include part-time courses, I hope Senators will agree it was important to include an enabling clause in the legislation to facilitate movement on this front when we are in a position to do so.

The second issue which arose last week had to do with whether the new online application facility would ensure more accurate grant applications would be submitted. As Senators probably know, incomplete or inaccurate applications are a major contributor to delays in processing grant applications. I am pleased to inform Senators that the new online facility is intelligent and responsive to the inputted information. It is not possible to leave blank mandatory fields and students are prompted to provide information specific to their personal circumstances. In addition, it automatically generates an e-mail to a student outlining the supporting documentation required for the application. This is student-specific and based on the information provided by the applicant.

The third issue which arose was the possibility of including funding to meet additional course costs such as equipment in the student grant schemes. Given the level of demand on the student grant budget, this will not be possible. Student grants are not intended to meet all of the costs of going to college but are intended to contribute to meeting the costs incurred. In the current economic climate, if we were to add funding in one area, it would have to be saved in another, meaning another cohort of students might suffer. On the other hand, costs incurred such as those for compulsory field trips are covered under the grant schemes. In the interests of fairness, the allocations made are deemed to be the fairest.

The possible involvement of students on the independent appeals board has been raised at various times throughout the legislative process. There is nothing in the legislation to preclude this, but the appeals board is not a representative body and it would not be appropriate for any of its members to participate on an advocacy basis. Its membership, appointed by the Minister, will be on the basis of expertise in education and other relevant fields such as accountancy. Senators will appreciate that the board must be entirely objective if it is to have credibility. I do not wish to imply that students would not be objective, but Members will appreciate that I must ensure from the outset that no question marks will hang over the board's independence.

I am pleased we have commenced the reform of the administration of the grants system by issuing invitations for expressions of interest in the establishment of the single grant awarding authority and by appointing an evaluation panel. I am also pleased that work is commencing on the consolidation of the four existing grant schemes by way of regulation. I hope Senators accept this as a sincere expression of commitment on behalf of the Tánaiste and Minister for Education and Skills and Department to deliver on this legislation for students and parents in the fastest possible timeframe. As the Tánaiste stated last week, the intention is to have the unified grants scheme in operation for the forthcoming academic year 2011-12. This will place the terms and conditions of the grant schemes on a legislative footing, including all of the eligibility conditions relating to nationality, residency, means and previous academic attainment. It will also include the eligibility requirements for various categories of student such as independent students, to whom Senator Healy Eames alluded last week. However, any changes to the definition of "independent student" will require cost implications to be taken into account and whether the cost can be borne in the current climate. The Senator also referred to continuing eligibility for student grants where a student discontinued one course and started another. Again, there would be cost implications in this regard which would have to be considered before any changes could be made to the current structure.

The intention is that the single grant awarding authority will come into operation on a transitional basis for the 2012-13 academic year. The question was posed last week as to why the authority could not commence operations sooner, but Senators will understand the legislation was originally drafted to allow for the grant administration function to be carried out by 33 vocational education committees. In line with the transformation of public services agenda, a Government decision was taken to develop a single grant awarding authority and until the legislation was sufficiently advanced, it was not possible to move on setting up the authority. There is now a process to be followed which involves inviting expressions of interest, evaluating these expressions, fleshing out proposals, where necessary, and verifying that any preferred proposals are fully viable.

Essentially, by the time the new single authority is selected, there will only be one year to put in place the necessary structures and resources to do this properly. Given the importance of the grant administration function, it is vital that the single body immediately offer an uninterrupted and effective service to students. Therefore, the new single authority will commence by accepting new applications in 2012, with current students staying with existing grant awarding bodies. This will allow a three to four year run-in period for the single authority. We are aware there were severe problems in other jurisdictions when there was an attempt to do too much too soon. Taking this on board, it is considered prudent to introduce and bed down the unified grants scheme in order that the single grant awarding authority can hit the road running with the scheme.

Senator Healy Eames asked what criteria would be used in deciding on the single awarding authority. Proposals from public bodies interested in operating the single grant awarding authority are expected to address customer service improvements, efficiency, use of technology, organisational capacity, potential for outsourcing and overall cost. Additionally, some of the principal challenges that must be addressed in proposals include the centralisation of a service currently provided by 66 grant awarding authorities, dealing with high volumes of inexperienced customers, interpreting and explaining grant schemes governed by complex regulations, development of new ICT and business processes, having new staff working with largely new management and cyclical work with relatively brief but high volume processing periods.

It has been made known to prospective applicants that the anticipated outcomes are timely processing and assessment of grant applications, decisions within a guaranteed timeframe where complete applications are submitted by the closing date, consistency in the application of scheme requirements, more streamlined and transparent processes, increased automation of service delivery from online application through to payments by electronic fund transfer, consistent and timely payments to both students and institutions, the availability of adequate information and support for students, improved management and financial information for the Government, significant gains in efficiency and cost-effectiveness in the grant administration function. Overall, there should be a greatly enhanced service for students.

Other issues were raised today by Senators Norris, Buttimer and others, including the concerns of VECs. The Department of Education and Skills is in ongoing discussions with the Irish Vocational Educational Association on its list of concerns. The matter will be discussed at a meeting with association representatives next week when its concerns will be addressed further.

Senators asked about the position of private and for-profit colleges, Griffith College was mentioned in particular. The institutions recognised under the Bill are generally publicly funded third level colleges offering full-time courses at undergraduate and postgraduate level.

The Department provides significant funding to the institutions in question. These funds are used to provide a broad range of courses which are required by society and not only to meet the economic needs of the country. The institutions in question operate for the greater good of the country and act in the best interests of the development of human capital in the State.

Private commercial colleges generally operate on a for-profit basis and the State does not have any say in directing their operations. By their nature, they only provide courses where there is a demand and their only objectives are to remain commercially viable and make as much profit as possible. If private colleges were to be approved under the student grants scheme, the Department would be liable to cover not only the costs of a maintenance grant and student services charge but also the cost of tuition fees, which constitute a support to the college rather than student. This would result in the State effectively contributing towards the operating costs of a private, for-profit college.

Taking together the factors I have outlined, the Government has formed the view that there are compelling reasons for not admitting for-profit colleges to the student grant scheme. For this reason, it is not proposed to depart from the policy of extending the scope of the student grant scheme to private colleges operated on a for-profit basis. This position is reflected in section 7, although the section does not preclude such colleges from being approved and makes provision for the Minister to prescribe an educational institution as being an approved institution subject to certain conditions.

Senator Norris also raised the issue of university status recognition for Waterford Institute of Technology. The issue of the status of other institutes of technology can be addressed in the context of the Senator's query. In line with the recommendation of the higher education strategy, there is no requirement for further traditional universities under the Universities Act 1997 and the Government has decided that no applications under section 9 of the Act will be approved.

An alternative pathway of evolution for institutes of technology is outlined in the report, allowing for potential amalgamation on a regional basis and redesignation as technological universities which would operate under a separate legislative framework. International expertise has been commissioned in developing detailed performance criteria for redesignation, which will be published at an early stage. Any future redesignation will follow a two stage process as set out in the report. This will include an assessment of wider system implications of any application and a second stage review by international experts focused on the amalgamated institutes' performance, quality and standards.

I am greatly encouraged by the enthusiasm of the stakeholders for the proposed programme of change and their co-operation in bringing it forward. The Department looks forward to continuing to work with them to maximise improvements in customer service and deliver an efficient and cost-effective system of grant administration. As we move towards the final stages of this legislation, I look forward to the Seanad's support for the Bill. I thank Senators and commend the Bill to the House.