FG unveils plan for €500m 'graduate tax' [independent.ie]

Source: independent.ie



By JOHN WALSHE

Thursday March 19 2009

Dental students would face massive debts of around €64,000 when they graduate from university, under a controversial plan for a 'graduate tax' proposed by Fine Gael yesterday.

The opposition party's plan for reforming the third-level education sector would mean graduate dentists repaying €1,333 a month for four years or €1,067 for five years. By contrast, arts graduates would end up paying much less -- €238 a month over four years or €190 over five years.

Launching its 'Third Way' reform document, Fine Gael ruled out a return to fees but instead proposed a new graduate PRSI contribution scheme.

Students would pay 30pc of the cost of their education when they graduated. When fully operational the scheme would raise €500m which would be ringfenced for higher education.

The party insisted that the average debt would be €12,000, but its education spokesperson Brian Hayes agreed that graduates from laboratory courses such as dentistry, veterinary and medicine would face much higher payments.

Discount

He argued these were well-paid professions but said the party might consider a 'cap' on the amount to be repaid. Fine Gael would also consider a discount scheme for courses that are designed to meet labour shortages or meet national goals.

He said that if graduates emigrated they would still face the debt when they returned. Alternatively, it might be possible to come to an agreement with a third country about the repayment of the debt. In its Green Paper Fine Gael also proposes:

* A new National Technical University to brand the entire Institute of Technology sector internationally.
* A new Department of Technology, Skills, Innovation and Higher Education.
* Abolition of college registration fees once the new Graduate Contribution system is in place.
* A review of the maintenance and student supports for students from poorer backgrounds.
* Dropping the aim of having 72pc of the age cohort in higher education by 2013 -- at present it's around 60pc.

Fine Gael said the target was neither affordable nor required if a proper further education and training system were put in place at a national level.

The Union of Students in Ireland gave a cautious welcome to the document. But its president Shane Kelly said USI was fundamentally opposed to the return of third-level fees, and could not support any strategy that sought their return.

The Irish Federation of University Teachers said the proposals would require further discussion and fine tuning. But it welcomed the fact that FG saw the huge barriers which could be caused by re-imposing fees of thousands of euro on students, said IFUT General Secretary Mike Jennings.

- JOHN WALSHE

 

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