In a dramatic climb-down on the proposed re-introduction of third-level fees, the Minsiter for Education has accepted that he has failed to get his plans in place.
"It is off the agenda, but that has not changed mymind [on the issue]," Mr Dempsey told a press conference in Government Buildings in Dublin this morning.
Mr Dempsey called the press conference to announce a €42 million package of grants for third-level access, a package which contained nothing about the re-introduction of fees.
Mr Dempsey said his original plans were always to provide greater access rather than simply introducing fees.
"I regard the outcome as very satisfactory from my point of view," he said.
The package announced today includes:
an increase in grant levels of 15 per cent
extra thresholds in qualifying for grants
an increase in the amount of the "top-up" grant to the maximum personal rate of unemployment assistance
"I am delighted to announce this substantial package which will benefit 56,000 students," said Mr Dempsey, who added the measures would be introduced in the coming academic year.
"Financial barriers have long being recognised as a major disincentive for disadvantaged students who wish to access third level education," he added.
"I have said consistently that tackling disadvantage at all levels of education is my top priority. This package of measures will be the catalyst that enables students from disadvantaged backgrounds to reach their full potential in the education system, and in their subsequent careers."
Mr Dempsey said he made the decision to bring forward the package of support measures to remove any uncertainty for Leaving Certificate students, who begin their examinations on June 4th.
The annoucement of the measures effectively scaps earlier plans to introduce third-level fees for those whose parents were on high incomes. Mr Dempsey had proposed this measure as a means of generating extra money for increasing access to college amongst the less well off.
Opposition parties, however, accused the Minister and the Government of merely attempting to raise extra money for the Exchequer.
The issue caused a major row between the Coalition parties, with Progressive Democrats leader and Tánaiste Ms Harney restating the party's opposition to the re-introduction of fees.
Today's announcement follows behind-the-scenes talks among Ministers and officials.
It appears to be a major climb-down on Mr Dempsey's part - on Friday he insisted he would press ahead with his proposals.
Fine Gael's education spokesperson Ms Olwyn Enright welcomed the latest development in the issue.
"I welcome the Minister¹s climb-down on third-level fees and am pleased to see that he has ended his solo-run.
"Noel Dempsey proposals to invest €42 million in access programmes is a welcome first step from this Minister in tackling educational disadvantage.
"I am delighted to see that the Government finally saw sense and recognised the importance of Fine Gael's core value of free access to education."
But she warned the Government to live up to its promises: "I intend to hold this Government to their much-talked about commitment to educational disadvantage, to ensure that participation from this sector at third level can be effectively increased."
Labour Party leader Mr Pat Rabbitte also welcomed thedecision saying it was "good news for tens of thousands of students who are due to sit the Leaving Certificate in tens days time and who have been subjected tototally unnecessary pressure as a result of the Minister's kite-flying exercise."
He also welcomed the allocation of €42 million in access grants. "However, given that the Minister for Finance, Mr, McCreevy, has repeatedly said that no additional money will be made available for education, I hope that Minister Dempsey's package to address disadvantage at third level will not funded by raiding other areas of the education budget."