THE NATIONAL College of Industrial Relations is being sued by the Union of Students in Ireland (USI) in a dispute over student funding. Last week solicitors for USI passed details of the case on to senior counsel and have informed the college of their intention to institute proceedings against them.

USI is also calling for an investigation by the Department of Education into the running of the college.

As reported in E&L last week the dispute arises over claims by the NCIR's students' union, a member of USI, that the college is withholding money due to the students' union in the form of capitation fees. Two general meetings of the students' union held in recent weeks have voted to have the money handed over to the union, but the college has refused, citing a disagreement over the division of the funds.

So far, the union says it has received only £8,967 in funding from the college. The dispute has led to the collapse of the students' union welfare service, which extends loans to students in financial difficulties.

"We are in the process of suing the administration of the NCIR for losses in services by the students' union," said USI president Colm Keaveney.

He accused the NCIR of "union bashing" and said it was ironic that a college which had leaders of the largest unions in the country on its governing body should behave in such a manner. Bill Attley, general secretary of the SIPTU, Peter Cassells, general secretary of ICTU and Phil Flynn, president of IMPACT, all sit on the NCIR's governing body.

Keaveney also criticised what he described as the "ostrich approach" of the Department of Education to the dispute. A spokesperson for the Department said the dispute was a matter between students and the college and it had no plans to intervene.

"It is a poor show on the part of the Department when it is not willing to step in and assist in the solution of a disagreement in an academic institution," said Keaveney. "It is in the interests of administration to hold an investigation, to reinstate faith in the college."

Bernard O'Brien, registrar of the NCIR declined to comment.

The dispute comes in the same week that USI has rejected as "inadequate" an offer of two seats on an eight seat Higher Education Authority sub committee to examine the issue of student funding. The committee is being formed to make recommendations to the Minister for Education on how the issue of the £150 services charge should be handled.

Keaveney said he was unhappy with the offer. "We were always seeking 50 per cent representation on the sub committee," he said.