TAX relief is to be introduced on fees paid for certain courses in private third level colleges from next autumn. The relief will apply only to courses approved by the National Council for Educational Awards (NCEA) and in the Royal College of Surgeons, The Irish Times has learned.
The relief, which will be payable at the standard rate of 27 per cent, could be worth more than £500 a year to the family of a student paying a typical annual tuition fee of about £2,000. Up to 1,500 students are expected to qualify under the measure, which will cost the Exchequer about £1 million a year.
Courses in private colleges which are validated by other bodies, including universities in Britain and the North, will not be eligible. This will be a blow to some of the larger colleges, which have expanded rapidly in recent years by offering UK designated degrees.
The Minister for Education is expected to reveal full details of the scheme, including the maximum tuition fee which will qualify, shortly. Ms Breathnach will also announce the extension of the higher education grants scheme to Irish students taking certain courses in the UK.
At present, the NCEA designates about 20 private colleges, but most students are concentrated in the big four Dublin based institutions Griffith, LSB, ABC and Portobello (Institute of Education) colleges. An estimated 3,000 students are enrolled in the private sector, including a high proportion from Northern Ireland.
LSB has the highest number of NCEA approved courses seven followed by ABC, which has five. Portobello (two approved courses) and Griffith (one) have tended to specialise in UK designated courses.
Earlier this year, Ms Breathnach established a working group on third level private commercial colleges and asked it to recommend a code of standards for approving colleges and courses for tax relief. She has now received its report.
In a submission to the group, the colleges called for tax relief on the full economic cost of a course. However, this proposal, which would considerably increase the amount of relief offered, has not been accepted.
The tax relief for private college courses will be effected through an amendment to the Finance Bill 1996, currently at the report stage in the Dail.
Earlier this month, the Minister announced that tax relief would be provided at the standard rate on fees for part time study. Courses must last at least two years and students must not have studied previously for a degree, certificate or diploma.
Ms Breathnach abolished fees for full time undergraduate courses last year.
