GREENS URGE DEMPSEY TO RECONSIDER PROPOSAL FOR COLLEGE LOANS SYSTEM

The Green Party stated today that the student loans system will end up being a disincentive to students wishing to enter third level education. Green Party Education spokesperson, Paul Gogarty TD, said today, "The Australian deferred loan scheme, known as HECS (Higher Education Contribution Scheme) for fees is not the way to go. Such a move here would be catastrophicfor not just students, but the future state of our economy.""Given that the Government squandered our tax revenue the Green Party suggeststhat one of the ways new revenues could be raised is through the abolition oftax breaks for fee-paying schools. I also see no reason why taxpaying parentswould not be prepared to accept a modest increase in income tax by way of aspecial levy provided monies are ring-fenced specifically for education.""Bringing back college fees will only hurt the lower middle income PAYE earners,who have already been affected by the registration fees increase. During the eraof the Celtic Tiger tthe Government's tax breaks benefited the wealthiest in oursociety. It is only proper that the people who benefited then should pay themost now when investment in education is needed like never before." "Our current free fees system is a sign of our national involvement in highereducation, a collective investment in skill. A recent Australian study foundthat people with loan debts were less likely to buy houses, take out loans andhave children because they were not willing to take on more debt. Loan systemshave proven to be very expensive. Currently in Australia there is a nationalstudent debt of $8.7 billion (set to rise to $11.4 billion in 2004). The idea ofa debt for life, the uncertainty of a better life after a degree and the veryingrained nature of financial disadvantage have all meant that most poorer people either choose to forgo university or simply cannot afford the debt."

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