Graduate tax 'costs students far more than course itself'

A GRADUATE tax could lead to students paying "far more" than the cost of their university courses, according to the head of a prominent think-tank.

The claim was made as the debate about free tuition fees in Scotland continued amid a squeeze on public spending.

Vince Cable, the UK Business Secretary, has floated the idea of a graduate tax in England and Wales.

The Director of Reform Scotland yesterday argued the move would be unfair because people could end up paying the tax for the rest of their life.

Geoff Mawdsley said he backed a deferred fee scheme where the cost of a course would be calculated, with students paying a proportion of the fee when they reach a certain income level.

He added: "A graduate tax is feasible, but I don't think it's a good idea.

"It is too open-ended and people could end up paying far more than the cost of the actual course they went on.

"Deferred fees would be a better option in our view, as the contribution paid by the student would be directly linked to the cost of tuition.

"We should start by saying how much courses actually cost.

"We should then look at how much of that cost should be paid by the student when they start earning a sum like 23,000 or above."

Tory education spokeswoman Liz Smith said: "I'm not particularly persuaded of the need for a graduate tax and would be much more supportive of a deferred fee.

"As the graduate tax would be a reserved matter, there could be complications about this being operated in Scotland.

"The deferred fee option would mean that students would have a better idea of the costs of their course, whereas a graduate tax wouldn't have that advantage."

The Scottish Government said education secretary Michael Russell was open to all "sensible ideas".

A spokesman said: "Clearly we have challenges ahead and university funding will come under increased pressure in the coming years.

"To find a "uniquely Scottish" solution, the cabinet secretary has initiated a debate involving government, universities and students about how higher education will be paid for in future.

"No decisions will be made until all those who have an interest have offered their views.

"The cabinet secretary has made clear he wants to encourage all sensible ideas, no matter how radical, are given a chance to be aired. Only one measure has been ruled out - the introduction of tuition fees."

Opposition parties at Holyrood said that they wanted to know the results of an independent review, led by the former BP chief executive Lord Browne, into alternatives to tuition fees, before committing to new funding schemes.Labour's education spokesman, Des McNulty, said: "Everyone recognises that the current financial position of the universities on the one hand and the government on the other means that we have to look at everything."

Lib Dem education spokeswoman Margaret Smith said: "We cannot and should not make substantial assumptions about what changes will be made before the report is even published."

Meanwhile, Liam Burns president of the National Union of Students Scotland, said that although he did not advocate a graduate tax, that he would look at "progressive" moves to help support students.