GRTU against removal of students’ smart card

The GRTU has come out against the abolishing of the smart card system saying that the students should not be granted a “free-for-all” system.

The Ministry for the Education has opted to abolish the use of a smart card and instead transfer the funds directly to the students’ bank account. According to the Ministry, this will save the government an annual €175,000 in administrative costs. The Auditor General had criticised the system in the sense that students were allowed to spend their maintenance grant in any way they could.

The GRTU said the ministry’s concern with the scheme was legitimate and it had taken note of the report of the National Audit Office.

“GRTU in fact had outlined a number of shortcomings and insisted that reviews were necessary but deciding to do away with the system as a whole defeats the purpose of the grant itself,” it said.

GRTU represents retailers, partners in the smart card scheme, and the concerns have been made public throughout the period the scheme was operational up till last year’s Budget proposals. The GRTU had argued against the unfair percentage fee charged on all transactions by the company administrating it as opposed to a flat rate transaction fee. Notwithstanding this, GRTU was in no way consulted on the foreseen abolition of the Scheme.

The running of the system has to date cost the country over €2 million – a sum that covers only the handling fee the government pays APCO Ltd, the company which organises the smart card system. It excludes salaries and costs related to human resources deployed by the government at the University of Malta and other departments to run the system.

The contractor receives almost 2% of the purchase value of items bought with the smart card. Between 2009 and 2012, the government allocated over €87.5 million in stipends.

“We feel that the new system can only increase instances of abuse. It lacks any kind of dissuasion or incentive for students to invest all the grant in items targeted at enhancing the students’ education,” the GRTU said.

GRTU had insisted on the creation of a simple updatable database of items which a student would be allowed to purchase in relation to the programme of studies s/he would be following, similar to the list of books required.

“Unfortunately students might now be more inclined to spend the least possible amount of funds on their educational needs,” it added.

Amongst other things, the National Audit Office outlined that students spent part of their funds mostly on sportswear and fitness equipment, mobile top-ups, and other non-educational items but it also explained how the system could be improved including a recommendation to re-issue the tender.

“We will therefore be moving from a situation where we know how much money is being spent and on what to a situation where everything is a mystery. The new system will not keep track on what students spend the money on as so far no real safeguards addressing this have been mentioned. We feel tax payer’s money deserve to be better accounted for.”

The GRTU said the new system will continue to aggravate the situation with the evasion of Eco-Contribution when purchases are made online.

“GRTU is in no way against buying online as long as there is a level playing field where everyone competes fairly. Most students at some point or another buy laptops and other electronic devices such as notebooks, that are subject to Eco-Tax, a Maltese tax which is so far only enforced when purchases are made locally.”

GRTU will be requesting a meeting with the Education Minister to discuss the matter in a bid to introduce an improved system that is effective, efficient and accountable.