Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

It is a follow-up by the Department of Finance on a decision being made by the Department of Education and Skills. The decision by the Minister for Education and Skills was that the student contribution will be increased by ¤250 this year, next year and the year after. That was to ease the financial constraints on the third level sector in that students would make a bigger contribution to funding the universities and the third level colleges. I believe that is justified. The measure in this Bill is consequential on that to maintain the same tax position because there is not much point in raising an additional fee charge to help fund the universities if it can be claimed back in tax. The rate of tax that applies here is the standard rate of tax and therefore if one takes 20% of ¤250, the argument is about ¤50.