Poll: Students prefer loan scheme to FG’s graduate tax

THE majority of young people do not support Fine Gael’s proposals for a “graduate tax” and instead favour a loan scheme to fund third level education.

An Irish Examiner-Red C poll found more students would prefer to pay up-front fees than be burdened with extra taxes when they enter the workforce.

Fine Gael’s graduate tax proposal would mean degree-holders paying increased PRSI contributions over a period of up to 10 years after graduation to meet around one-third of their higher education cost to the State.

Both Fianna Fáil and Labour strongly criticised the plan over the weekend.

Labour labelled it an “Emigrant Tax”, claiming it will lump €12,000 debt onto young people at the start of their career and force them to leave Ireland.

Fianna Fáil said it will lead to “brain drain” and claimed Fine Gael “has no interest in harnessing the talents of our young people”.

The Irish Examiner-Red C poll of 18 to 35-year-olds found 27% of students in this age-group preferred up-front fees, compared to 26% who favoured a graduate tax after their graduation.

The majority — 46% — said they would favour some form of student loan scheme that would allow them to pay back fees after they finish their third level education.

Of all 500 surveyed in this age group — including students, the employed and unemployed — 51% favour a student loan scheme, 28% favour a graduate tax and 21% said an up-front fee was the best way to fund third level.

Fianna Fáil said last night that the graduate tax is “a return to third level fees in another name”.

Front-bench spokesperson Darragh O’Brien said: This will mean substantial debt for graduates. The graduate contribution for a three-year arts degree will cost on average €11,400, a four-year science degree €16,338 and an engineering degree €17,096.

“The knock-on effect of this will see school-leavers choose cheaper courses as opposed to the type of courses we need to progress Ireland’s smart economy agenda, such as engineering.”

While Labour’s manifesto says it opposes the reintroduction of third level fees, education spokesperson Ruairi Quinn has hinted at room for manoeuvre in this area and declined to rule out some kind of “study-now, pay-later” option.

The party’s youth branch launched a campaign against graduate tax over the weekend. “In effect it will encourage a brain drain out of Ireland as those who benefit from our internationally-renowned education system will be encouraged to seek work abroad rather than incur this charge,” said Labour’s Youth Chair, Colm Lawless.

More than a half of young people have already considered leaving Ireland to get work, according to the Irish Examiner-Red C poll.

More than a half of 18-35-year-olds who are students or not in work think they do not have a chance of getting a job in Ireland in the future. Well over half — 55% — of all young people surveyed said they have considered emigrating over the past year “due to lack of personal opportunities”.

Men are more likely to leave Irish shores with 60% of 18-34-year-old males saying they considered emigrating compared to 50% of women. And 65% of Dublin youths have considered leaving the country compared to 48% in the rest of Leinster, 52% in Munster and 50% in Connacht and Ulster.

Three-in-five young people have seen a friend or family member emigrate in the past year, rising to four out of five for young people in Connacht and Ulster.