Oireachtas Joint and Select Committees

Tuesday, 23 June 2020

Special Committee on Covid-19 Response

Childcare: Impact of Covid-19 (Resumed).

Ms Bernie McNally:

What we have done is take a very evidence-based approach. We have used information that we have on the providers' costs and that is how we came up with a figure of €75 million this year, instead of €28 million. For example, the reopening grant will cover a lot of their additional costs from the list that I spoke about earlier.

If only 50% of the parents return some providers will have surplus staff to help them out. It is not that they will have additional costs and need more staff, with additional costs. They will have some surplus staff that are being funded, through the temporary wage subsidy scheme, by up to 85% of their income plus what they will get from us through schemes, plus what they will get from parents, plus the capital money, and plus the reopening money that should allow them to keep their heads above water and start to make a profit after they have income from about 40% of services. We will continue to monitor this aspect. We have worked very closely with the stakeholders to develop the funding package with them.

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