Grants means-test proposal criticised

The Minister for Education's proposals for major changes in the higher-level grant system have been sharply criticised by groups representing farmers, the self-employed and students.

Opposition parties gave a guarded welcome to the proposals, but warned that those sectors should not be discriminated against.

The Minister, Mr Dempsey, wants to change the system so that all capital assets, such as land and the value of business premises, would be taken into account when the children of farmers and the self-employed apply for grant support.

The President of the IFA, Mr John Dillon, described as "totally regressive" the proposal to take the value of farmland into account in establishing eligibility for grants.

"The reality is that if grant support is removed, many students from low-income farming backgrounds will not have the opportunity to go to college," he added.

"This is the exact opposite to Minister Dempsey's claimed intention to support access to low-income groups to third- level."

Mr Dillon said that average farm incomes fell by 8 per cent last year to €15,000, with little prospect of a reversal in most sectors this year.

The chief executive of ISME, the Irish Small and Medium Enterprises Association, Mr Mark Fielding, said that people should not be penalised because they had business assets which were wealth-generating. "Our members are law-abiding, tax-compliant citizens. They are returning their income the same as everybody else. If the Government decides it does not believe those figures, the Revenue Commissioners have the clout to go after them."

The president of the USI, Mr Will Priestley, warned that the proposals would deter many students from taking their college places because of fears that the new regulations might be introduced during the course of their studies. He added that the Department of Education had chosen to re-ignite the fees debate at a time when students had enough problems finding accommodation and part-time jobs to finance their studies.

The Fine Gael deputy spokesman on education, Mr David Stanton, said it was high time many of the recommendations in this week's Department of Education report on third-level supports were implemented, including streamlining the administration of maintenance grant schemes. "Obviously maintenance grant support should be limited to people who need it," he added. "But great care must be taken, as some people are very dependent on the market for their income and market conditions can fluctuate."

The Labour spokeswoman on education, Ms Jan O'Sullivan, said Labour had no difficulty in principle with the consideration of assets in the assessment of means. "Clearly, those with substantial financial assets can abuse the system to the detriment of others," she added. "But the best way to assess means for the rewarding of grants is to hand over the administration of the system to the Department of Social and Family Affairs, which is best equipped to do so."

The Green Party spokesman on education, Mr Paul Gogarty, said he would welcome any measure which would tighten up loopholes in the third-level grant system and widen access to education.