Pat O'Neill (Fine Gael)
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I thank the Minister of State, Deputy Ciarán Cannon, for taking this matter. The issue I wish to raise is not a transport matter but one that has created problems for people living in my area in County Kilkenny.

In the last budget announced in December the qualifying distance between home and college for the payment of a non-adjacent grant was increased from 24 km to 45 km. This issue affects not only people living in County Kilkenny but also others living in counties such as Roscommon and Leitrim. We do not have third level facilities in the county. The closest facilities are Waterford Institute of Technology and Carlow Institute of Technology. Perhaps it is time the south east had a university, for which the Minister of State might lobby. It is the only region that does not have a university.

The problem is that Kilkenny city is within 45 km of both Carlow and Waterford; thus, people living in Kilkenny will not qualify for a grant to attend a third level institute. This has caused and will cause hardship for families in my area. Parents will either have to pay for transport daily, provide a car or transport their child to and from college.

Some 7,515 people are unemployed in County Kilkenny. According to CSO figures, some 1,283 of the people concerned are under the age of 25 years. A well educated young population would help in reducing the level of unemployment in the county. However, we do not have a third level institute and the rate of third level participation in the county is one of the lowest. In the most recent study of participation rates in third level education, 2004 being the last year for which figures are available, County Kilkenny was far down the league table of counties. The research study has found that the county ranked 19th in admission rates to third level, lower than County Carlow, and 18th in admission rates to universities. The absence of a third level facility in the county is regarded by many as a crucial reason for its lower than average participation rates in third level education. The changes to the grant rules made in the last budget are likely to have an adverse effect on the participation rates.

During the Celtic tiger years many young people might not have been interested in going on to third level. We had construction and service industries, but many of the jobs in these sectors have been lost. The only way we can help our young people is to educate them to allow them to become highly skilled. In Kilkenny, the problem is that the distance was changed from 24 km to 45 km. If one lives in Kilkenny, one must attend college in a major city - Cork, Dublin, Galway or Limerick - to get a full-time grant. One cannot stay close to home and go to, for example, Waterford Institute of Technology or Institute of Technology, Carlow. Will the Minister of State ask that the rule be examined?

In Kilkenny, 1,283 people under the age of 24 years are on the live register. Given the economic climate, we do not want this figure to increase because young people cannot access third level education. Parents are at the pin of their collars trying to educate their kids. If the grant is removed, the number unemployed will increase. Will the Minister of State consider reversing the change to 24 km?

Ciarán Cannon (Galway East, Fine Gael)
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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.