Graduate PRSI Contribution Scheme

Fine Gael has ruled out the introduction of 3rd Level College fees and said that a new Graduate PRSI contribution scheme would raise in the region of €500m per year for the 3rd level sector. The new scheme proposed by Fine Gael would allow for the abolition of college registration fees and see new entrants to college, after graduation, make a contribution through the PRSI system to the value of 30% of the cost of their college education. These funds would be ring fenced for the 3rd level sector.

Speaking at the launch of the Green Paper The Third Way prepared by the Fine Gael Education Spokesman, Brian Hayes TD, the Fine Gael Leader Enda Kenny TD said:

"The future prosperity of this country depends on getting higher education right. As these proposals show, Fine Gael is determined to reform the higher education sector and reposition our Universities and Institutes to become world leaders in education. Delivering quality higher level education cannot be left to chance.

"If we want to regain Ireland's position as a location for hi-tech, cutting edge new industry we have to make sure that our education system is up to the task of supplying the necessary graduates to make that ambition realistic. Currently there is a funding problem in our 3rd level sector that is undermining the achievement of that ambition. Fine Gael recognises the need to bridge that funding gap and has set out a fair and progressive means of doing that."

Speaking at the launch of his Green Paper, The Third Way, Brian Hayes TD, put forward an alternative and sustainable way of funding higher education in Ireland for the future:

"The Minister for Education's strategy in deciding a new funding model, while not setting out at the same time a Reform Agenda for the Sector, is doomed to failure. Asking students or their parents to bail out higher education, when reform has been left to another day is an approach that I cannot support.

"In addition, we do not support the reintroduction of fees and we propose to abolish registration fees which both act as barriers to entry to 3rd level. What we have proposed, as part of a wider ranging set of proposals, is a Graduate Contribution through the PRSI system that would see new entrants to college today pay 30% of their college costs over a period of years once they start working, based on current estimates, but that this cost could come down. This approach would raise in the order of €500m per year and would be ring fenced for the 3rd level sector.

"We have already seen fees by the back door with the recent Budget decision to radically increase third level registration fees from €900 to €1,500. However, I recognise that the current funding mechanism for higher education in this country is unsustainable in the long run. If we want to develop a knowledge based economy, we have to recognize that the current funding arrangement must change. Putting the funding of higher level education on a secure financial foundation must be faced down.

"Since the decision of the Rainbow Government to abolish college fees in 1996 the number of students participating in higher education has risen from about 120,000 to about 170,000 now. That's an amazing achievement in just 12 short years. In the 1980s about 20% of the leaving cert students went on to higher education, today it's over 60%.

"Fine Gael opposes the reintroduction of fees and will not support the introduction of a loan system where students are straddled with substantial debt when they leave college.

"We have opted for a deferred graduate contribution scheme, where graduates pay through the PRSI system in the order of 30% of the cost of their undergraduate course once they are working. This system is straightforward, free at the point of delivery and would only apply to new entrants.

"The graduate contributions would then be ring fenced into a new Third Level Change Budget, estimated to be in the region o

EXECUTIVE SUMMARY

FINE GAEL PROPOSAL 1

The Government must fulfil its promise to release the committed funding to ensure
that the Limerick Regeneration Project can commence immediately. This is critical in
terms of housing, social, health and education as well as job creation potential.

FINE GAEL PROPOSAL 2

The Multi Agency Taskforce for Limerick and the Mid-West must:
• be expanded to include a representative of IDA Ireland,
• be given clear and targeted objectives, and
• produce an interim report within three months and a final report within 12 months

FINE GAEL PROPOSAL 3

A dedicated and ring fenced marketing budget should be put in place to market
Shannon Airport. This budget will have two specific and measurable goals:
• to promote Shannon as an entry point to regional airports in the United States of
America and
• to promote new routes into Shannon for an 18 months period.

FINE GAEL PROPOSAL 4

Shannon Development should undertake a feasibility study into developing the
Region as a specialist centre for ancillary financial services for the international
transport sector. The focus of the sector should include the shipping and aviation
sectors. This feasibility review should be completed by the end of June 2009.

FINE GAEL PROPOSAL 5

The Adare Bypass project should commence in the short term, with the aim of
improving the environment and tourism attractiveness of Adare.

FINE GAEL PROPOSAL 6

A Centre for Energy Innovation, to be based in University of Limerick and Limerick
Institute of Technology should be established. This will support the national goal of
being a net exporter of green energy within a decade. It will also support change and
innovation in the existing fossil fuel generation sector.

FINE GAEL PROPOSAL 7

Shannon Development, in conjunction with other State agencies, should produce a
five year plan for tourism development in the Mid-West region. This plan should be
completed by the end of September 2009. In the meantime, the Government should
extend the deadline for applications to the Mid Shannon Investment Scheme.

FINE GAEL PROPOSAL 8

The Multi-Agency Task Force and the relevant state agencies must work together to
minimise the impact of major manufacturing plant closures on the sub-supply sector.
We propose the establishment of a dedicated project team challenged with the task of
seeking replacement contracts at home and abroad.

FINE GAEL PROPOSAL 9

For companies that expand their workforce with new employees, employers should
receive an employers’ PRSI holiday for 12 months for each new employee. This is
already Fine Gael national policy.

FINE GAEL PROPOSAL 10

All State Enterprise Agencies operating at Regional, City or County level should
devise a proactive review programme for individual companies to support job
retention.

FINE GAEL PROPOSAL 11

Fás should provide structured career counselling for all affected by the changed
economic scenario. This must include:
• Skills assessment and aptitude profiling.
• Linking individual skills gaps with identification of skills and education
opportunities – both part-time and full-time.
• Given the scale and intensity of the job losses to run out of course or additional
programmes as necessary and to offer new courses as required.
• Any time issues which act as a barrier to retraining or to education participation
should be lowered so that newly redundant employees can immediately
participate.

FINE GAEL PROPOSAL 12

The Government should mandate Fás to maximise the application and benefits of the
EAGF for eligible activity in the Mid-West region.

FINE GAEL PROPOSAL 13

The County Enterprise Boards should act quickly to create tailored programmes on
business creation in this economic environment, covering market assessment,
financing and personal profiling

BACKGROUND

The Leader of Fine Gael, Enda Kenny T.D. met with the Oireach