Students will start to receive a grant equivalent to their smart card allowance in their bank account abolishing the card system.

Addressing a news conference this morning, Education Minister Evarist Bartolo Said that would save some the government some €175,000 in administrative expenses.

He quoted an Auditor General report of 2010 which had been critical of the system describing it as ineffective, with the administrative costs outweighing the benefits.

Some 18,000 students are eligible for the smart card, costing taxpayers some €7.5 million.

Mr Bartolo downplayed concerns that the abolition of the card would give rise to abuse, making it easier for students to use the money for non academic purposes.

He said such incidents used to happen even under the smart card system. However, he pledged to enforce existing regulations which obliged students to refund the grant if they dropped out or abused the system blatantly.

Students will be able to apply for this grant online as from September.

Asked about the industrial dispute involving academic staff in the wake of yesterday’s announcement that an agreement was near and as a result a directive to withhold all results of non-final year students was lifted, the minister declined to reveal the exact cost of the offer but said the overall increase in salaries and allowances would amount to more than €8 million over the agreement's five-year period.