IBEC welcomes decision to consider third-level fees

IBEC today welcomed the Minister for Education Batt O'Keeffe's confirmation that the Government is considering the reintroduction of tuition fees to help address the serious under-funding in the third-level sector.

IBEC said the current funding system was unsustainable and called for a detailed examination to see which alternative system, involving the re-introduction of private contributions, would be most suitable.

IBEC Head of Education and Social Policy Tony Donohoe said: "The free fees policy is unsustainable for economic and social reasons. Investment in higher education is essential to support the development of an economy based on learning and innovation. Even before the current downturn, there was widespread acceptance that it would be impossible to develop a globally competitive third-level system by relying on state funding alone.

"If tuition fees for undergraduate study are reintroduced, the additional income must not be offset against reductions in state funding and should represent a real increase in resources for third-level education," he said.

"The current policy is inequitable because it provides substantial subsidies to students whose families could well afford to pay tuition fees. It also discriminates against part-time students who are required to pay tuition fees. When the OECD examined this issue, it stated that no evidence was produced that the decision in 1995 to abolish fees had more than a limited, if any, impact on the disparity of participation rates amongst the different social/occupational classes.

"Therefore, any re-introduction of fees must be accompanied by a sound student finance system," he added.