The Minister for Education, Mr Dempsey, finally conceded yesterday the return of college fees and a new student loan scheme were off the political agenda for the foreseeable future. Sean Flynn, Education Editor and Arthur Beesley, Political Reporter report
He admitted defeat in his efforts to levy college fees on wealthy families after negotiations between the coalition partners which resulted in a new €42 million package to widen access to third-level.
Mr Dempsey rejected Opposition claims that he had suffered a humiliating climbdown at the behest of the PDs.
"I never let my ego get in the way of a good result," he said yesterday morning at a specially-convened press briefing.
As the Opposition questioned Mr Ahern's role in the affair yesterday, two Fianna Fáil backbenchers were openly critical of the Government's stewardship.
Dublin TD Mr Conor Lenihan said: "Clearly this should never have been allowed to drag on like this. The Tánaiste signalled her opposition to this last September. It seems a little strange that this was allowed to continue until now."
He added: "The Government would want to make sure that there's no repeat of this. I think the controversy over fees has been somewhat damaging to the Government and its reputation."
Kilkenny TD Mr John McGuinness said the debate on fees was "bogus".
While welcoming the initiative on access, he said the manner of its agreement was wrong.
Some 56,000 students will benefit from the new package which raises grant thresholds, and provides greater incentives for lower socio-economic groups to go to third-level.
It became clear yesterday that Mr Dempsey had been poised to propose an income threshold of €100,000 for any new college fees regime. However, he also admitted this would have secured only €15 million for the Exchequer, based on calculations in his department and from the Economic and Social Research Institute.
As pressure grew to defuse the row in the run-up to the Leaving Cert exams next week, political sources said there had been concern to deal with the issue before the Government embarked next month on a programme to radically reform the health service.
The compromise package was agreed at a lunchtime meeting on Saturday in the constituency office of the Taoiseach, Mr Ahern, in Drumcondra, which was attended by Mr Dempsey, the Tánaiste, Ms Harney, and the Minister for Finance, Mr McCreevy.
The 45-minute meeting followed private discussions last week between Mr Ahern and Ms Harney, who opposed the reintroduction of fees.
Less than a week after Mr Dempsey strongly defended his plan in the Seanad, he declared yesterday that fees and a loans scheme were now off the agenda.
Mr Dempsey's confirmation that the Government had ruled out fees suggests the issue will not re-emerge before the next election.
He also implied a separate OECD review of third-level education in the Republic would not lead to fees because it would concentrate on wider questions of funding and structures.
Reservations about the fees initiative were not confined to the PDs; an overwhelming majority of Fianna Fáil TDs who spoke at a parliamentary party meeting 10 days ago were against the plan.
Grant levels are to be increased by 15 per cent, and income thresholds for receipt of a grant are also increased. Those with a family income of less than €32,000 will receive a full grant. Those earning between this and €38,000 will receive 25-75 per cent of the grant.
The "top-up" grant is increased to the maximum personal rate of unemployment assistance.
The threshold for payment of the €670 student service charge increases from €36,897 to €40,000.