Ahern hopes for decision on fees within two weeks

The Taoiseach has declined to rule out the introduction of student loans in the ongoing controversy over third-level fees. Mr Ahern said, however, that no legislation to allow for such loans would be forthcoming in the current Dáil session, which ends in July.

He hoped, however, to have the issue of third-level fees dealt with and cleared by Cabinet before the start of the Leaving Certificate exams in two weeks' time.

He was speaking during a stormy session yesterday, as the Opposition repeatedly challenged him to set out exactly what the Government's proposals were on fees.

The Labour leader, Mr Pat Rabbitte, echoing the view of the Union of Students in Ireland, said the controversy was an entire smokescreen for the introduction of a loan scheme, which would have the support of the PDs, would be punitive for ordinary people and would force skilled people into emigration.

The PDs have since expressed their opposition to a loan scheme.

The Fine Gael leader, Mr Enda Kenny, said the Taoiseach should show leadership, remove the uncertainty hanging over the 50,000 Leaving Certificate students and their parents, and abandon any proposal to reintroduce third-level fees.

Mr Ahern, who made a staunch defence of the Government's record on education, repeated that no decision had been made to reintroduce fees.

There was still a difficulty in one area - access for those in lower socio-economic groups to third-level education. "It would be totally irresponsible not to look at this issue," he insisted, adding that he would not take lectures from people "who say we do not care about the disadvantaged".

Mr Ahern said the Opposition only cared about the people who were wealthy and already in third-level education. But if you were disadvantaged, on the margins and on welfare the Labour Party and Fine Gael did not care "two hells" about you.

Mr Kenny, who raised the issue, said that in two weeks students would sit their Leaving Certificate English exam and would be marked for clarity and conciseness in their replies.

He asked the Taoiseach to state clearly there would be no fees. "With absolute clarity", Mr Ahern replied, he hoped to have the matter dealt with and cleared at Cabinet before the Leaving Cert started.

Mr Rabbitte said the discussion was a smokescreen for the introduction of a loan scheme. That was going to put people on moderate incomes "in hock". There would be a brain drain as a result, as in Australia, and young, skilled and educated people, which the economy needed, were going to emigrate.

That was what was wrong with a loan scheme being contemplated by the Government, that was going to have the support of the PDs, "and that's what's going to save the Minister, Noel Dempsey's neck. It is a disgrace because it will impose significant hardship on ordinary people," Mr Rabbitte said.

Mr Ahern said the Australian example might not be right, but Australia had the strongest economy in the world, its education was considered good, like Ireland's, and Mr Rabbitte's argument did not hold up.

There were now 120,000 people in third-level education compared to 40,000 previously, and there was one issue left. About 50,000 people earned over €100,000 and "a sizeable number earn over €200,000 and they pay nothing at all for the education system. I do not think that is right."

Mr Rabbitte said that Ireland had the second-lowest spend in Europe as a percentage of GDP on education. It would take a generation to know the impact of the removal of fees.

Mr Dempsey replied that the Labour leader wanted the disadvantaged to wait another generation.