Kathleen Lynch (Cork North Central, Labour) | Oireachtas source

It is unfair for the Senator to continually refer to the Minister pressing ahead with certain proposals, particularly as he is aware that a decision has not been made on the capital asset test implementation group's report. I thank the Senator for raising this issue, to which I am replying on behalf of my colleague, the Minister for Education and Skills, Deputy Ruairí Quinn.

Last December, it was announced that the means test for student grants will be amended to take account of the value of certain capital assets in addition to income for new applicants from the 2013-14 academic year. The Senator will appreciate that, in the context of the current financial climate, the importance of accurately directing increasingly scarce resources towards those who need them most has become a high priority.

Many reports over a number of years have strongly recommended the introduction of a capital test for student grants, particularly on the grounds of equity and fairness. The introduction of such a test would create a more equitable basis for means testing, where a more complete analysis of a family's capacity to support their children in pursuing further or higher education is undertaken.

While the introduction of a capital assets test for student grants may have traditionally been perceived as likely to have an impact on certain communities, particularly the farming community, this is not the object of the proposal. The proposal is not designed to target any one group. In common with other State means-tested schemes, the two principal factors that facilitate spending - income and accumulated wealth or capital - would be taken into account for all applicants, be they unemployed, employed, self-employed or retired.

Following agreement in principle by the Government to broaden the current means testing arrangements for student grants by way of inclusion of the value of capital assets, the Minister set up a dedicated implementation group to bring forward detailed proposals for implementation in 2013. The group was charged with bringing forward detailed implementation proposals on new means-testing arrangements for student grants, to include the value of assets, for new applicants from the 2013-14 academic year. The group was also charged with drafting a detailed outline of the scheme and providing the required information to enable the development of necessary related legislative provisions. The Minister has received the draft report of the implementation group and is currently reviewing it with officials before bringing it to the Government, which will make any final decisions.