Brian Ó Domhnaill (Fianna Fail) | Oireachtas source

The issue I wish to raise is that of third level grants and the decision of the Minister for Education and Skills in the context of budget 2012 to reassess the evaluation process for such grants in order that, in addition to income, the value of certain capital assets will be taken into account. This is a cause of huge concern to self-employed persons, self-employed families and, in particular, farming families. I understand the capital asset test implementation group has completed its report and submitted it to the Minister. We are not sure what recommendations it contains, but it is important that the report be published as quickly as possible in order that everyone will have an understanding of what is happening.

There is a myth abroad that all students whose families have farms receive third level maintenance grants, but nothing could be further from the truth. A Higher Education Authority, HEA, survey completed of 72% of first year students during the 2009-10 academic year showed that only 8.9% of new students were from farming backgrounds. Of these 8.9% of students, only 39.7% were in receipt of third level grants. This means that between 4% and 5% of all first year college students from farming backgrounds receive grants. If the Minister for Education and Skills, Deputy Ruairí Quinn, presses ahead with his proposals, he will deter young people living on farms or in rural areas or those whose parents are self-employed - for example, shopkeepers and others with small businesses - from proceeding to third level. These individuals will not be able to afford to go to third level if they cannot avail of the grants available.

Let us consider the position of a farmer who is generating income from the land he or she owns. Under the Minister's proposals, that income will have to be declared when the farmer's son or daughter is completing the application form for the third level maintenance grant. That income will, therefore, be assessed and will go towards determining whether a grant will be approved. What the Minister is endeavouring to do is extremely unfair. While the income to which I refer will be assessed, the Minister has also indicated that the value of capital assets will be taken into account. These assets are necessary in order to generate income. As a result, those to whom I refer will be assessed in respect of both their incomes and capital assets. If the Minister proceeds with his proposals, farmers and the self-employed will be assessed twice on the same earnings. That is extremely unfair. A person who runs a shop or some other business requires his or her premises in order to generate his or her income and create employment. The income from the shop or business is assessed as his or her means. It would be very unfair to discriminate against self-employed persons and farmers who are already struggling and who, on foot of the class of PRSI contributions they make, do not receive social welfare payments.

I ask that the report of the capital asset test implementation group be published. I accept that the Minister of State, Deputy Kathleen Lynch, does not hold a portfolio within the Department of Education and Skills. However, I must emphasise to her that it is critically important that the Minister, Deputy Ruairí Quinn, refrain from implementing his proposals to bring capital assets into the equation in the assessment of means. It will be grossly unfair if what is envisaged comes to pass.