Gilmore: FG must change policy on child benefit and graduate tax

Eamon Gilmore said today that Fine Gael must drop its plans to both cut child benefit and introduce a graduate tax if they wish to form a coalition with Labour.

The Labour leader set out the preconditions while on the hustings in Dun Laoghaire.

"Fine Gael need to drop their plans to cut child benefit, that’s one, so let’s start with that one," said Mr Gilmore, responding to a question from the media as to whether he has any preconditions for entering Government with Fine Gael.

He was also rounded on by Trinity College lecturer Diana White who demanded to know how Labour would fund its third-level education plan.

"I agree with more people going into third-level education, but I think we have to be realistic … this has to be financed in some fashion," she said.

Labour today is highlighting its opposition to Fine Gael’s proposal for a graduate tax that students would pay having completed their qualification, claiming that it would lump graduates with €12,000 of debt and cause a brain drain out of Ireland.

However, Fine Gael leader Enda Kenny insisted that Labour's proposals would have to be paid for.

"It is preposterous to think that you can fund third-level education in the way that the Labour Party are proposing," he said.

The Labour Party's youth wing said the levy will force struggling graduates abroad.

Colm Lawless, Labour Youth chair, said: "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."

Fine Gael detailed its proposal a year ago, ruling out a return to fees but instead proposed a new graduate PRSI contribution scheme.

"So many questions and uncertainties exist about this graduate tax that one can only assume that it is another cost and charge that they would like to conceal from Irish families, only to be unveiled after the election," Mr Lawless said.

"Labour is opposed to third-level fees by either the front or back doors."