Ciarán Cannon (Galway East, Fine Gael)

I am taking this Adjournment matter on behalf of my colleague, the Minister for Education and Skills, Deputy Quinn. I thank Senator O'Neill for raising an important matter. He referred to a change to the student grant schemes announced in budget 2011 by the previous Fianna Fáil-Green Party Government, which increased the qualifying distance criterion for the non-adjacent rate of grant from 24 km to 45 km.

I understand that a number of issues were taken into account in arriving at this decision. The over-arching need was to find savings to manage additional cost pressures arising from a significant increase in the number of students qualifying for grants, a proportionate increase in the number of students qualifying for higher rates of grants and payment of the student service charge on behalf of grant holders. As a consequence, an increase in the qualifying distance criterion for the non-adjacent rate of grant formed part of a package of measures to achieve these savings.

I understand that the justification for this decision was that the existing qualifying criterion was in place since 1968 and no review or change had taken place since that time. This was despite the improvements to transport facilities and road networks and better and more cost effective travelling options that have altered commuting practice more generally in society over that time.

The fourth round of the Irish Eurostudent survey relates to the 2009-10 period and provides information on where students live. The statistics indicate that some 45% of all full-time students choose to live in their own or their parents' homes during term time, yet some 77% of grant holders are currently on the higher non-adjacent rate. The recently published DIT "Student Cost of Living Guide" for the 2011-12 period, which provides students with information on costs for rent, utilities, food, travel, books, socialising, and so on, shows that the likely cost for a student living in rented accommodation is almost twice the cost involved for students living at home. This is why the non-adjacent rate of grant is designed to assist with the costs of living away from home.

Regarding the distance set, 45 km was deemed to take account of a fair and reasonable radius in which students could be expected to commute on a daily basis. This distance criterion is in line with the Croke Park Agreement for the redeployment of public servants. I also understand that, if the approach were not taken to target grant reductions in areas where student's costs were genuinely lower, a far deeper cut than the 4% introduced for all grant levels in January of this year would have been necessary. The potential impact of this on all students, particularly those on the lowest incomes, was taken into account.

In general, it was considered that none of the changes in budget 2011 would result in a student losing a grant. Those living further than 45 km away will obviously continue to get the non-adjacent rate of grant and those with particularly low incomes will still qualify for a top-up. Others will receive a grant level reflective of their circumstances. The Senator will also be aware that €5 million for the Student Assistance Fund, SAF, has been made available to help students in a particularly difficult situation. The Minister regrets that he is not in a position to reverse this or any of the changes to the student grant schemes made by the last Government.