NCC urges college fees

The National Competitiveness Council (NCC) has called for the re-introduction of third-level fees and a broadening of tax bands.

Students should pay for some of their university education due to the high benefits they get from access to it, the council said.

In its latest report, The Competitiveness Challenges 2005, the NCC said Ireland has the potential to develop its education system “to be the best in the world.”

To assist that process students should be required to pay for some of their third-level educational costs, it said.

NCC chairman, Dr Don Thornhill, said the State has got to look at the introduction of third-level fees.

That need not mean reintroduction of fees as normally understood, he said.

“There’s another way of doing it which is that higher education could be free or very low cost for the first few years.”

The cost could increase significantly after that.

“If you were to go that route it would be much more effective in encouraging people from low-income backgrounds and deprived areas into third-level education,” he said.

“It was education reforms over the last 30 years which contributed enormously to bringing us where we are today.”

The NCC is concerned we retain our 12.5% corporation tax at a time when the corporation tax regime here is raising concerns in the US and the EU is pushing for tax harmonization.

NCC advises government on economic policy.

It says other areas requiring attention are the National Spatial Strategy and a proper co-ordinated plan for the greater Dublin area.

Dr Thornhill said the engine of the economy is currently being driven by the huge property boom and by huge personal borrowings.

These cannot sustain the economy indefinitely.

“The further development of our dynamic and competitive export sector will be the platform on which the success of our economy is built,” he said.

He warned there was a serious risk of complacency in all of this which is why the NCC has highlighted the actions required to ensure the success story is sustained well into the future.

Welcoming the report, Enterprise Minister Micheál Martin said it was an “important contribution to our policy making and thinking on strategic national development issues.”