GRTU calls for product list to tighten student smart card system

The Chamber of SMEs (GRTU) is supporting a call by university students' union KSU for the reform of the smart card system, after an investigation by the Auditor General found as much as 15% of purchases - totalling €950,000 - intended for 'educational material' was for sports clothing and shoes.

The GRTU said retailers 'pay' for the smart card system through a 2% overhead charge on each smart card transaction, and that they now want a flat fee to replace the commission.

But the Auditor General has raised questions on the way university students are allowed to spend their annual €400 in cash under the smart card scheme, with 300 outlets that accept the smart card selling everything from fitness equipment to CDs under the scheme. "It is unclear whether a number of retail outlets participating in the Smart Card Scheme, some of which were paid substantial amounts during 2010, stock any items considered to be of an educational nature," the National Audit Office said in its annual report.

The GRTU said it is in favour of having an official database of products that are eligible to be paid with smart card. "A list would provide both the students and the retailers with further clarity and avoid misuse. The retailer requires clear information also in order to be able to guide his employees, since owners must trust the judgment of salespersons."

The GRTU is also in favour of changes to the composition of the students maintenance grants board, calling for more representatives of the retail trade, students and government officials. Presently the board is composed solely of Government officials.

"This board not only administers the SMGB system but is also judge and jury in cases where inappropriate use of smart cards is suspected. The GRTU feels that government officials might not possess the sufficient technical knowledge some goods might require, which we see as essential in order to be able to make a fair judgement."

Part of the annual €23 million grants system to university students includes an annual fixed amount that can be spent in various retail outlets. However, the NAO says that retail outlets also include car hire and pharmacies, saying the nature of some of the businesses "sheds doubt on [their] eligibility to participate in the scheme."

During 2010, the NAO found that smart card payments for sportswear totalled €942,393 - equivalent to 15% of all payments to retailers in 2010.

It was also noted that the funds being spent on sportswear - particularly sports clothes and sports shoes - was increasing, when in 2009 these payments amounted to 11% of the total smart card spend.