A Labour Party motion calling for a package of emergency measures to fund third-level education in relation to students' accommodation costs was defeated in the Dail last night by 73 votes to 68.

The motion called for a package of emergency measures to tackle the crisis that students from low and middle income families faced in funding their third-level education due to rapidly escalating accommodation costs.

These measures included an increase in income eligibility limits for student maintenance grants; a graduated system of entitlement; a programme for the provision of good quality student accommodation; and the abolition of the student registration fee.

Replying to the motion, the Minister for Education, Mr Martin, said that the total list of measures called for by the Labour Party would amount to over £100 million a year.

"The broad scale, untargeted approach to solving the problems is simply not credible. The net effect of the proposals would be to spend many million, once again using limited resources, not helping those in need," he said.

He was not willing to allocate over £100 million to this area, but he was already working with colleges to expand access and address the accommodation issue. He believed that this was the most credible and progressive way to address the concerns of those most in need.

The Government was already implementing its largest single pledge relating to grants; the introduction of grants for post-Leaving Cert students.

Mr Brian O'Shea, Labour spokesman on education, moving the motion said that one of the key structural problems affecting the third-level education system over the years had been student accommodation. Their needs had been catered for, in the main, by the private rented sector.

He said it was clear that the current maintenance grant level of £1,624 for a student living away from home, and £660 for a student living at home, was wholly inadequate.