Seán Haughey (Dublin North Central, Fianna Fail)

The institutions recognised under the Bill are generally publicly funded third level colleges offering full-time courses at undergraduate and postgraduate level. The Department of Education and Skills provides significant funding for these institutions which is used to provide a broad range of courses required by society, not just to meet the economic needs of the country. The institutions operate for the greater good of the country and act in the best interests of the development of human capital.

In general, private commercial colleges operate on a for-profit basis and the State has no say in directing their operations. By their nature, they provide courses for which there is a demand only. Their sole objective is to remain commercially viable and make as much profit as possible. If private colleges were to be approved under the student grant schemes, the Department would be liable to cover not only the cost of the maintenance grant and student service charge but also tuition fees which represent a support to the college rather than the student. This would result effectively in the State contributing towards the operating costs of a private for-profit college.

Taking all these aspects together, the Government is of the view that there are compelling reasons for not admitting for-profit colleges to the student grant schemes. It is not proposed, therefore, to depart from the policy of not extending the scope of the schemes to private colleges operated on a for-profit basis. That is the position reflected in section 7 of the Bill. Having said that, the section does not preclude the colleges from being approved, as provision is made for the Minister to prescribe an education institution as being approved, subject to certain conditions.

I intended to reiterate the point I made at the beginning, but Senator Norris came and went during my contribution.