Brian O'Shea (Waterford, Labour)
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Question 436: To ask the Tánaiste and Minister for Education and Science the action that she proposes to take in regard to the concerns of a union (details supplied); and if she will make a statement on the matter. [13840/10]

Mary Coughlan (Donegal South West, Fianna Fail)
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The issues raised by the Deputy relate to the passage of the Student Support Bill and changes in rates and eligibility under the student grant schemes announced in Budget 2010.

The Deputy will be aware that a number of amendments to the Student Support Bill in relation to legal and policy issues which have arisen since Second Stage are being advanced by my Department in close consultation with the Office of the Attorney General.

In light of the commitment to put the grants on a statutory footing, I am anxious to provide a statutory basis for all student grants, pending transition to new administrative arrangements. This transitional period will necessitate retention of the existing administrative structures in the immediate term. In bringing amendments to Committee Stage, I will therefore be endeavouring to provide for existing administrative arrangements for this transitional phase, while progressing to a single scheme of grants as provided for in the Bill at the earliest possible date.

In the context of the Government's wider programme of public service reform, I am also re-assessing organisational options for the grants administration function in the longer run, with a view to revisiting the current proposals provided for in the Bill. Possible options for a more significant centralisation of functions are now being explored with a view to streamlining operations and maximising administrative efficiency. This examination is being undertaken as part of a business process re-engineering exercise being conducted under the Transforming Public Services agenda.

These developments have required consideration of a complex set of legal options in relation to further amendment of the Bill and my Department has been working closely with the Office of the Attorney General to address the issues in that regard. I would like to assure the Deputy that these proposed amendments are now at an advanced stage of preparation and it will be my intention to proceed with the Bill on this basis in the shortest possible timeframe.

Subject to the technical, drafting and legal considerations arising, my Department hopes to be in a position to have these amendments advanced sufficiently in order to move to Committee Stage as early as possible in the current session.

The current difficult economic circumstances have necessitated tough choices to control public expenditure and to ensure sustainability in the long run. In these circumstances, from September 2010, as announced in the Budget, all new applicants who are in receipt of the Back to Education Allowance for all schemes, and the VTOS allowances for those pursuing PLC courses, will be ineligible for student maintenance grants. The cost of the student services charge and any fees payable to colleges will continue to be met, for eligible students, by the Exchequer on their behalf. Students should apply to their assessing authority to have their eligibility assessed.

Students currently in receipt of the BTEA or VTOS allowances and the maintenance grant will continue to be eligible for both payments for the duration of their current course provided they continue to meet the terms and conditions of the schemes. Students progressing to a new course, with effect from 2010/11, will no longer be eligible for student maintenance grants but can apply for assistance towards the cost of the student services charge and any fees payable.

It was decided to discontinue the practice of allowing students to hold both the BTEA or VTOS allowance and a student maintenance grant simultaneously as this represents a duplication of income support payments.

As announced in Budget 2010, a reduction of 5% was applied to the rates of student grants and scholarships. This reduction was implemented in respect of all grant-holders from January 2010. This reduction is broadly in line with reductions in other income maintenance payments including those for the unemployed. The reductions in the rates of student grant were necessary to ensure that the system is not extended beyond what current resources will allow in a climate of overall pressures on public finances.

Students who qualify for maintenance grants will continue to receive substantial grant funding, together with full support for payment of the student service charge. Those on particularly low incomes will also continue to receive a "top-up" in the special rate of maintenance grant.