FG’s 10-year student grad tax

STUDENTS will pay a graduation tax for 10 years after leaving college under new Fine Gael proposals to fund higher education.

The initiative would see 30% of the cost of third level courses raised via a PRSI contribution.

Registration charges, set to rise to e1,500 later this year, would also be abolished. The party’s education spokesperson Brian Hayes claims it would eventually raise e500 million annually.

Under the scheme, doctors would pay on average e533 a month in extra PRSI over 10 years, while arts students would pay e95 a month. Mr Hayes said it was the only way to improve funding while avoiding a return to fees.

Since fees were abolished, third level students numbers has grown from 120,000 in 1996 to some 170,000.

Mr Hayes said a major structural reform of third level was also needed. He called on the Government to abandon its target of getting 72% of students into third level by 2013.

“It is nether affordable nor required if a proper further education and training system was put in place at a national level,” he said.

Education Minister Batt O’Keefe accused Mr Hayes of not being honest with students. “This proposal is somewhat surprising from Fine Gael, whose education spokesman exhorted the Government parties to be ‘honest with students’ as he stood on the back of a lorry at a student demonstration for free third level education earlier this year.

“Brian Hayes obviously suspended his own values of honesty that day as he sought to gain favour with the student constituency while neglecting to tell them that he was planning a graduate tax,” a spokesperson for the minister said.

Mr O’Keeffe is due to bring a report to cabinet next month regarding third level funding that is expected to include the return of fees as well as other options.

The Union of Students in Ireland gave a “cautious” welcome to FG’s initiative.