MINISTER FOR Education Batt O’Keeffe has moved to calm fears about his forthcoming package on college fees, insisting “no group will be unfairly burdened”.
His comments appear to signal that low- and middle-income earners may not be liable for major new charges.
The Minister has still to decide on the final shape of his proposals which will go to Cabinet next week. But the centrepiece of his proposals is likely to be a deferred payment scheme whereby students repay the cost of their fees after graduation.
At this stage it appears only households with a very high income will be liable for third-level fees – but sources stress that discussions on the final shape of the package is continuing.
Mr O’Keeffe is expected to bring his final proposal to Cabinet next Tuesday or later next week.
The Minister’s move to calm fears last night – made through his spokesman – comes amid increasing nervousness in Government about his package.
Sources say there is a “marked reluctance” to impose new fee charges on the average taxpayer in the run-up to the June local and European elections.
With workers facing increased taxes in Tuesday week’s budget, Mr O’Keeffe has acknowledged “there is only so much pain that people can be asked to bear”.
Last night a spokesman for the Minister said the new package would be based on core principles. These are affordability; the need to widen access for the disadvantaged; better participation in higher education and the need for overall equity.
While the Minister has moved to reassure most taxpayers, he still faces the task of generating income for the debt-ridden third-level sector. A new fees regime targeting the well off will generate only a small fraction of the €350 million the State pays colleges every year in lieu of fees.
The Minister has also been considering a system whereby students would gain a 20 per cent discount for paying fees “upfront” – instead of waiting until after graduation. Potentially, this could generate up to €70 million per year, according to education sources.
Under the new graduate tax system, students could be asked to repay their fees after graduation, once their earnings exceed an income threshold.
The new graduate tax system is likely to be introduced in September of next year.
There is some speculation that the Cabinet, having endorsed the Minister’s main recommendations, may ask the National Strategy Group on Higher Education to tease out the details.
The recently appointed strategy group, chaired by economist Dr Colin Hunt, is due to complete its report by the end of this year. Students already in third level will not be liable for any new charges.
