FF, PDs differ on return of fees for third level

The Taoiseach and Tánaiste have dismissed reports of plans to tax child benefit and end the Special Savings Investment Scheme…

The Taoiseach and Tánaiste have dismissed reports of plans to tax child benefit and end the Special Savings Investment Scheme as the Government struggles to regain public confidence.

However Mr Ahern and Ms Harney yesterday appeared to differ on whether third level education fees be reintroduced. Ms Harney pledged her party's opposition to any such move, but Mr Ahern indicated he was open to charging fees for children whose parents had high incomes.

Both Government leaders yesterday called on voters to separate their views on the Government from their decision on the Nice Treaty referendum. Fianna Fáil and the PDs are promising major campaigns for a Yes vote, an outcome they hope would restore some of the Coalition's damaged authority.

Meanwhile the Minister for Foreign Affairs, Mr Cowen, said there was "no basis whatsoever" for reports that some party backbenchers were campaigning to make him party leader. Mr Ahern had his "full and undivided and total support", he said.

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Fighting sustained allegations that they hid plans to cut services and schemes during the election campaign, Mr Ahern and Ms Harney moved yesterday to end speculation on two issues. The Government sponsored savings scheme "will remain as it is", said the Taoiseach, adding that there had been no discussion on taxing child benefit.

Ms Harney was even blunter: "I want to assure people that children's allowances will not be taxed," she told the Cork radio station Red FM. "The special savings scheme people have put their money into will not be touched."

However they differed on the issue of third level fees. After defending the savings scheme Ms Harney said: "Neither do we want to see university fees reintroduced."

Mr Ahern, speaking at the launch of Fianna Fáil's campaign in favour of the Nice Treaty, said no decision had been taken on third level fees. However he posed the question: "Is it right that people who are on the top echelons of salaries in this country should get precisely the same arrangements as people who are in the lower levels?"

The Minister for Education, Mr Dempsey, yesterday refused to back down on his controversial decision to investigate the reintroduction of third level fees, which he said could be in place as early as September 2003.

Mr Dempsey attacked the Union of Students of Ireland, accusing them of "not living in the real world" on the fees issue. He said he would not be making a recommendation on the reintroduction of fees until the outcome of a review he has ordered.