The Government has announced an increase in college charges of almost 70 per cent as part of a further series of hard-hitting measures to curb Exchequer spending.
While the Minister for Education, Mr Dempsey, staunchly defended the move last night, the Opposition parties and the USI attacked the increase, claiming it signalled a return of "fees by the back door" and an effective end to free third-level education.
It is understood that the Government will be "drip-feeding" more public spending cuts in the next week before the Cabinet breaks for its summer holidays.
Under the plan announced yesterday the charge levied by third-level colleges to help defray the costs of registration, examinations and student services will increase from €396 to €670.
The Labour Party spokesman on education and science, Mr Joe Costello, denounced the increase as "savage", saying it would impose hardship on many families.
Fine Gael's spokeswoman on education, Ms Olwyn Enright, said the increase was evidence of Government "stealth cuts" imposed since the general election.
The Minister for Finance, Mr McCreevy, still faces a cuts shortfall of up to €70 million and will be maintaining pressure on his Cabinet colleagues to come up with more savings to help meet his cuts target.
Department of Finance officials will be liaising with senior civil servants across all departments in coming days.
Mr McCreevy is anxious to have his list of cuts complete by next Friday, the last Cabinet meeting before Ministers take their summer holidays.
Officials point out that the cuts need a five-month lead-in to have impact on this year's spending figures.
The Minister is keen that Government colleagues pinpoint cuts themselves, rather than have cuts foisted on them.
Already Foreign Affairs has come up with savings of €32 million by reducing its Overseas Development Aid budget, while the Minister for Defence has cancelled a contract for five new Sikorsky helicopters.
The Minister for Health announced a freeze on 800 approved jobs in the health sector on Wednesday, representing a saving of €10 million.
Defending the college registration increase, Mr Dempsey said 37 per cent of university students and 47 per cent of students in the institutes of technology would not be liable for the charge as they were eligible for means-tested support through the local authorities and the VECs.
Mr Dempsey was also anxious to place the increased charge in the context of a range of increases and improvements in student support services also announced yesterday. These include:
An increase of 5 per cent in the maintenance grant to give a maximum grant of €2,510 in the 2002-2003 academic year.
An increase of 7 per cent in the income thresholds for grant eligibility.
An increase of 15 per cent in the allowance by which the income thresholds may be increased for each dependant where two or more children are in further or higher education.
Mr Dempsey has also broadened the special rates of maintenance grant for students from disadvantaged backgrounds, introduced in July 2001.
The annual income threshold for the special rates of maintenance grant, more commonly known as the "top-up grant", has been increased by 32 per cent.
Third level tuition fees for the coming academic years will increase by 6 per cent, a cost which will be borne by the Exchequer under the free fees scheme.
It is estimated that the annual cost per student of providing third-level education in the next academic year will exceed €6,000 for arts, law and business courses, €8,000 for science courses and €9,000 for engineering and medicine.