Frances Fitzgerald (Dublin Mid West, Fine Gael) | Oireachtas source

We have committed to restoring Ireland's economic sovereignty through ensuring a successful and sustainable exit from the troika programme. This will require eliminating our excessive annual deficit. Together with other Departments, in late 2011 my Department undertook a comprehensive review of expenditure in order to achieve public expenditure savings over the three years 2012 to 2014. The Department was required to contribute €41.384 million in savings over the three years, with €16.028 million of these savings required in 2013, representing a reduction of just under 4%.

Under the new performance accounting arrangements introduced in 2012, the subhead structure of Vote 40 is based on three major programme areas: programme A - children and family support programme; programme B - sectoral programme for children and young people; and programme C - policy and legislative programme. Of the €16 million savings required in 2013, some €4.27 million are to be made under programme A; €9.83 million under programme B and €1.92 million under programme C. The current funding allocation for my Department after reduction taking account of the comprehensive review of expenditure is of the order of €400 million.

The free preschool year under the early childhood care and education, ECCE, programme is expected to cost €175.8 million in 2012. This is a universal programme, with a 97% uptake, which is proving to be vitally important in improving outcomes for children. The cost of a scheme is a function of the number of children in the eligible age range and capitation rates. Based on the statistics available for birth rates in the country, there has been no decline in the number of children in the eligible age range; in fact, recent increases in birth rates indicate that the number of places will, if anything, increase, giving rise to a subsequent need for funding. As members of the committee will be aware, there is a programme for Government commitment to maintain the universal free preschool year. This is a commitment I have been determined to meet and I secured additional funding in 2012 to meet the increased demand. I am equally determined to meet the commitment and protect the future of the scheme. From time to time I hear rumours that the Department is not committed to it. I reiterate that we certainly are. Consequently, there is limited cope to achieve further saving because this is the largest expenditure item in my Department. In total, the early child care programmes implemented by the Department accounts for over €250 million or 60% of its expenditure. It is striking that 60% of the Department's total expenditure is in the area of early childhood care and education. Against this background, difficult decisions are required.

The other programmes involving significant expenditure by my Department include the school completion programme and youth schemes and programmes under the Family Support Agency. While savings will be sought in these areas, I am committed to ensuring they will, to the greatest extent possible, be effected through more streamlined delivery and targeted outcomes. To this end, arrangements are being made in my Department to carry out a detailed review of both the school completion programme and the youth programme in the coming months.

I restate my commitment not to cut the overall funding envelope for local voluntary youth grants. It was not reduced last year and will not be next year. This reaffirms my commitment to protecting and promoting voluntary youth work which is vitally important in supporting young people and communities.

Significant organisational reforms are planned to ensure the most effective use of available resources. The combination of HSE child welfare and protection services, the family resource centres and the counselling services under the Family Support Agency and the education and welfare services of the National Educational Welfare Board will provide a very effective starting point in ensuring supports for children and families, particularly those who are most vulnerable. These services are now more effective and streamlined.

I wish to refer to a number of issues which have arisen during 2012 which must be factored in when framing the 2013 allocations in my Department's Vote. I welcome comments from Deputies in this regard. They include the increasing cost of providing the community child care subvention scheme which assists low income parents with child care costs owing to the increasing number of qualifying parents. The impact of this trend in terms of continued upward demand on the scheme in 2013 will need to be closely monitored. I informed Deputies last year that we had filled all the places available. There was significant demand on the scheme last year.

Deputies will have heard about the longitudinal study of children. The latest research, published today, covers 13 year olds. I identified savings in this area that could be made because contractual commitments were coming to an end, but given the importance of the study, it is my intention to proceed in 2013 with the third sweep of the infant cohort at age five years in order to complete phase 1. I am pleased to be able to do this because there was a question mark over whether it would continue. The data that are emerging from the study are very important.

What is critical - the Joint Committee on Health and Children has a role in this regard - is that the many recommendations in the longitudinal study of children are acted on and influence policy and that lessons are learned from them.

The longitudinal study report notes the high number of 13 year olds who are obese. Having made a similar finding previously in respect of three year olds, the study's most recent findings indicate that obesity is an ongoing and disturbing trend. We need to act to ensure we interrupt this trend. In this regard, I am aware that the joint committee has been studying the issue. Given the importance of the longitudinal study, the provision of funding for this purpose is an effective use of State resources. We have information on infants and three year olds and the new cohort which I am pleased to support will provide information on five year olds. This will give a continuous assessment across the three age groups.

For legal reasons, I must continue to make provision for the early childhood payment in the Vote for 2013. Deputies will recall that this payment was abolished some years ago. However, ongoing legal commitments arise and cases are still being processed before the courts, surprising as that may be for Deputies to hear. For this reason, I am required to make an allocation for the payment in the subhead. It is a nominal amount which will have to be met from overall resources. An up-to-date assessment of these costs will have to be made before allocations are finalised.

I am pleased that an increased capital allocation will be made to Vote 40 in 2013. More than €20 million in capital funding is expected to be allocated in 2013 as part of the decision to proceed with the Oberstown campus project to redevelop and expand the children's detention centre in Oberstown. I am pleased to note that the project has been through the planning process without objection. I have had several meetings with staff from the Office of Public Works to progress the project. As I have informed members previously, I am pleased that 16 year olds are no longer accommodated in the facility. The new accommodation is required to ensure all 17 year olds will be accommodated on the campus from 2014 onwards.

Recently I announced additional capital funding for youth cafés in 2012 and a new capital programme in 2013 for youth cafés, other youth projects and the development of play and recreational facilities by local authorities. In the case of youth cafés, funding of €500,000 is being made available for the first time, while in the case of play and recreational facilities, I expect funding of €1.75 million to be available in 2013. Several youth cafés have been opened in the past year and they are a great asset to local communities, offering great opportunities for young people to mix in safe and welcoming surroundings in which they can develop skills and enjoy themselves. The increased funding will be of major benefit in improving recreational facilities for children and young people.

Given the overall national position, every Department must find ways to meet funding objectives. While I am satisfied children's and young people's services have been accorded a high priority relative to overall reductions in public expenditure, it is incumbent on all of us to contribute to delivering public services more cost-effectively. For this reason, it is important to reform services and analyse how funding was allocated in the past to ensure it is used more effectively. This process has involved bringing together key services under the Child and Family Support Agency and extending the review and reform of youth schemes and the school completion programme. The purpose of the reforms continues to be to ensure we achieve the best possible outcomes with the resources available to us.

I hope I have been of assistance to the select sub-committee and look forward to members' input to the discussion.