Aug 24, 2013

USI Responds to Proposed Cuts

In the face of major cuts jeopardizing the equitability of third-level education in Ireland, and a recent study revealing that the cost of college is set to exceed €9000 this year, the Union of Students in Ireland has formulated a response plan to urge the government to protect education.

Overall, since 2008, higher education has been cut by 25%. USI’s Joe O’Conner asserts that “this educational austerity must stop now.” These plans, outlined in the Union’s Pre-Budget Submission booklet, are set to be finalized for Budget 2014.

Firstly, the Union argues for the protection of the grant in lieu of graduate tax, student loans or student voucher systems. The submission cites the fact that in 2012, 76,000 students were supported by the grant scheme, which constituted 38% of all full-time students. Department of Public Expenditure and Reform Officials publicized their belief that the grant was insufficient in 2011, and their fear that reduction in grant rates would impact “most severely” on the most vulnerable students. However the scheme risks further cuts in 2013. In light of this, the USI has also recommended a plan for future student contribution – set to reach €3000 in 2015 – which includes a mid-term study on the mental and financial stresses inflicted on students and their families by fee increases.

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The Union is also pushing for continued funding for mature students and the creation of a fairer postgraduate loan scheme. The Back to Education Allowance (BTEA) gives mature students financial support as they return to third level education. In 2012, BTEA was targeted for savings of €20 million, and it faces further cuts in 2013. The 2012 Budget also eliminated the maintenance grant for postgraduate students, while loan interest rates are considerable at 10.8% in Ireland compared with the UK’s 1.5%. This threatens to make post-graduate education accessible only to the well-off.

Finally, the USI maintains that the budget should aim to tackle youth unemployment, which now includes 35% of under-25s in Ireland. With Ireland’s presidency of the European Council, the government received €6 billion in funding for the Europe-wide Youth Guarantee. The USI wants to make sure this is spent properly and matched by government funding, in light of its potential to greatly ease the youth unemployment crisis in Ireland. The Union is also recommending that the government provide incentives to employers who hire under-25s.

In conjunction with this, the Union has distributed a “Guide to Lobbying” for the run-up to Budget 2014, in which it argues for the reduction of university staff salaries and an overhaul of the current “one size fits all” system in education. The USI further argues that the state can afford to make the initial investment in education, as graduates pay around 70% more taxation during their lifetime than non-graduates.

“The State will reap a larger financial benefit in the long-term,” the Guide reads, “not to mention the societal benefits such as increased Foreign Direct Investment, increased participation in democracy, decreased smoking levels, additional knock-on employment, etc.”

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