Seán Sherlock (Cork East, Labour)
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Question 298: To ask the Minister for Finance if it is proposed to introduce a tax free allowance in respect of the cost of rental accommodation for parents of college going children; if proposals have been made in respect of same by the Commission on Taxation; and if he will make a statement on the matter. [1845/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The Government acknowledges the continuing financial pressures on parents and students and is therefore making significant commitments in the area of third level education. In general, there are no tuition fees payable at undergraduate level. This is an effective subsidy to students and their parents or guardians who would otherwise have to pay some or all of the economic cost of providing such undergraduate education.

In addition, where tuition fees are payable in respect of certain full-time and part-time undergraduate and postgraduate courses in approved colleges, tax relief is available in respect of qualifying fees paid by an individual. The current maximum relief per course per academic year in respect of third level fees is €5,000 at the standard rate of tax. Such tuition fees paid by parents on behalf of their children qualify for this tax relief.

I would also point out that the Government has allocated over €277 million towards student support for 2009. The largest component of this spending is maintenance grants. These provisions ensure that State support in this area is directed towards those who most need it. The introduction of additional tax relief in respect of the cost of rental accommodation for parents of college-going students would involve significant costs for the Exchequer and cannot be considered at this time. The Commission on Taxation is scheduled to provide its report to me in September 2009. It will not make any proposals or recommendations in advance of that.