Monday, September 15, 2008

Economist calculates estimates of revenue from third level fees

In today's Irish Independent (here), it is reported that education minister Batt O'Keeffe has again signalled his eagerness to examine the reintroduction of third-level fees, after a report he commissioned claimed they would boost State coffers by €530m.

Calculations by a UCD economist revealed the State would collect €530m, if families earning over €120,000 a year had to pay third-level fees; €290m, if an income threshold of €140,000 was applied; and €220m, if a threshold over €160,000 was used... Last night, department sources said the analysis by UCD economist Dr Noel Woods was made merely to "inform the debate".

The minister has also commissioned a report on the Australian student-loan model, where students repay the cost of their education when they get jobs. A tax expert has also been commissioned to compile a report on how the self-employed, including farmers, could be charged college fees.

8 comments:

Martin Ryan said...

From what I can see Dr Woods is based at the UCC Centre for Policy Studies:
http://www.ucc.ie/en/DepartmentsCentresandUnits/CentreforPolicyStudies/Staff/

Martin Ryan said...

The rest of that link is:

/CentreforPolicyStudies/Staff/

Liam Delaney said...

530 million? - This must be for both the universities and the institutes of technology. there are 70,000 university students. Even if every single one of them paid 7 grand per year this would only be 490 million.

The calculation method as reported by the newspaper is below so it does seem that both universities and IT's are being considered. Its amazing that this is not being picked up in the debate. That would be a substantial change in the higher education environment in Ireland and more radical than just reintroducing university fees.

"Mr O'Keeffe said last week that proposals to re-introduce fees could be put before Cabinet within 18 months. He said that fees were "appropriate" given a Bank of Ireland report which said there were 33,000 millionaires in Ireland. Dr Woods based his figures on CSO data, calculating the numbers of households in the various income brackets, and the numbers within those income brackets studying for a third-level education."

Martin Ryan said...

If people didn't catch Kevin and Colm's recent article in the Sunday Business Post, its available here. "Valuable lessons to be learned from British third-level funding":

http://archives.tcm.ie/businesspost/2008/08/24/story35317.asp#

Martin Ryan said...

/24/story35317.asp#

Martin Ryan said...

It turns out that there was a miscalculation and that the real figures are €55m to €135m a year, depending on family income threshold.

http://www.independent.ie/national-news/botched-fee-figures-leave-batt-redfaced-1478192.html

Martin Ryan said...

figures-leave-batt-redfaced-1478192.html

Kevin Denny said...

That is so funny.A couple of us came up with those (lower) figures without even having to resort to the back of an envelope.