O’Keeffe: FG graduate tax plan welcome

A FINE GAEL proposal for a graduate tax would not be supported by the Labour party or third-level students, but Education Minister Batt O’Keeffe has welcomed it as a constructive contribution to the debate on higher education funding.

The party’s education spokesman Brian Hayes proposed at the weekend that graduates would make a contribution for their degrees by deductions through PRSI for up to 10 years after leaving college. He said the funding should be ring-fenced for higher education but that a Fine Gael government would continue to pay third-level tuition fees, with the additional income supplementing this.

However, Labour party education spokesman Ruairi Quinn said he does not like the idea of one-off taxes and ring-fencing money for specific areas of public spending.

“Graduates pay higher taxes already because they tend to be higher paid, we need to fund the education system out of general taxation. The overall tax system needs to be reviewed because we need to spend more on basic services such as health and education,” Mr Quinn said.

“The Government’s policy is to increase third-level participation from 55% to 72% of school-leavers, but we can’t get to that if we’re telling people they will have to pay a graduate tax when they’re saving to buy their first home,” he said.

Mr Quinn said he agrees with Mr Hayes that more money is needed for education but that some of it should come from general taxation. He said he would be open to discussion on the issue in the context of any government being formed by Labour and Fine Gael, but his party is presently working out policy in this area.

Union of Students in Ireland president Shane Kelly said he would wait to discuss the proposal with Mr Hayes, but that the union opposes any funding model that might impede the concept of universal access to third-level education.

“The plans are a bit vague on specifics but anything that puts a barrier in the way of people going to college, and money usually does that,” he said.