Tuesday, 7th October 2008

News from the Guernsey Press

Returning students may get tax breaks

STUDENTS who return to the island could be given a tax break, if the States agrees. Deputy David De Lisle is placing an amendment to Education’s higher education proposals.

Although second choice for the department, it seems likely student loans will be adopted.

Deputy De Lisle wants to reward returning students by using income tax taken from them locally after completing a degree to go towards paying off their loans.

‘We’re certainly rewarding outsiders if you like who come to the island to work to the tune of up to £75,000 - that’s not available to local people looking to return,’ he said, referring to relocation packages offered to some.

‘To give students £9,000 would be a very small part of that.

‘We’re not doing anything for our own who return. That’s not fair, it’s discriminatory. Which other society allows that to happen?’

He stressed support for the current grant system continuing.

‘I feel we need to spend the money where it’s clear it is beneficial to the community. That’s where I disagree with Treasury,’ said Deputy De Lisle.

The majority of Treasury members and the majority of the Policy Council support student loans over increasing Education’s higher education budget.

Another deputy against student loans, Sam Maindonald, wants the proposals changed if they are introduced at next week’s meeting.

Education says they should be administered by Cherry Godfrey, but Deputy Maindonald wants more investigation into whether this could be done in-house by the States.

Her amendment would see Treasury and Education reporting back to the States by February on the feasibility of that happening.

Deputy Al Brouard wants the Policy Council to report back by no later than July with proposals to ensure that separated or divorced parents contribute towards the cost of their biological children’s higher education.

Deputy John Gollop also has an amendment to the report.

He wants grants maintained, with access to loans brought in alongside them.

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