Written answers

Wednesday, 17 September 2014

Department of Education and Skills

Apprenticeship Programmes

Photo of Michael LowryMichael Lowry (Tipperary North, Independent)
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1250. To ask the Minister for Education and Skills if she will immediately reverse the decision to impose a student service charge on all apprentices while attending institutes of technology for their periods of off-the-job training on phases 4 and 6; her views on whether these charges are fair in view of the fact that the apprentices are full time employees, not students, and do not receive any services or benefit from this charge; if her attention has been drawn to the fact that apprentices are amongst the lowest paid workers in the State and this charge is crippling for them; and if she will make a statement on the matter. [33106/14]

Photo of Jerry ButtimerJerry Buttimer (Cork South Central, Fine Gael)
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1252. To ask the Minister for Education and Skills if she will reconsider the appropriateness of applying student services charges to apprentices when the services are neither available to nor suitable for those undertaking apprenticeships; and if she will make a statement on the matter. [33154/14]

Photo of Finian McGrathFinian McGrath (Dublin North Central, Independent)
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1257. To ask the Minister for Education and Skills if she will end the student service charge for apprentices which in fact is a tax on training; and if she will make a statement on the matter. [33246/14]

Photo of Finian McGrathFinian McGrath (Dublin North Central, Independent)
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1270. To ask the Minister for Education and Skills the position regarding the student service charge (details supplied); and if she will make a statement on the matter. [33412/14]

Photo of Jan O'SullivanJan O'Sullivan (Limerick City, Labour)
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I propose to take Questions Nos. 1250, 1252, 1257 and 1270 together.

The Annual Student Contribution is levied on students attending Institutes of Technology (IoTs). The amount due by apprentices is calculated on a pro rata basis of the time which they spend in Institutes of Technology during the academic year.

Since 2004, FÁS/SOLAS has paid a part of the Annual Student Contribution due in respect of apprentices, with apprentices themselves paying the part of the contribution relating to examination fees. As part of Budget 2014, SOLAS have ceased making payments to Institutes of Technology and apprentices pay the full pro rata Annual Student Contribution.

From January 2014 up to the end of the academic year in June, apprentices paid €833 (1/3 of €2,500) per typical attendance block although a small number of apprentices paid more for longer blocks. These arrangements mean that apprentices are treated the same as students in IoTs in terms of the annual student contribution. Apprentices had already been paying €233 (28% of €833) in respect of the exam fee element of the ASC.

However, unlike full time students, apprentices are paid a training allowance by SOLAS for phases of their training spent in IoTs. This allowance ranges from €293 to €647 per week depending on the trade and phase of the apprenticeship programme. This is the equivalent to their net take-home pay on the job, and is not subject to tax or PRSI. Such allowances are not available to students in the IoTs.

The Budget 2014 decision was taken in the context of the difficult economic circumstances the country is in and the overall savings that my Department had to find in 2014. There is no scope to revisit the measure.

I am deeply committed to supporting apprenticeship training in Ireland, both through the renewal of existing apprenticeships and the extension of the apprenticeship model to new areas. I will be focused on delivering in accordance with the Implementation Plan recently published to take forward the recommendations of the recent independent review of apprenticeship training in Ireland.

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