Mr. Kevin McCarthy:

I thank the committee for this invitation to attend to assist in its examination of the 2021 Appropriation Account of the Department of Children, Equality, Disability, Integration

and Youth and of Chapter 13 of the Report on the Public Services 2021: Guardian ad Litemfollow-up report. I am accompanied by my colleagues Ms Carol Baxter, assistant secretary; Dr. Anne-Marie Brooks, assistant secretary; Ms Sheenagh Rooney, assistant secretary; and Ms Lara Hynes, acting assistant secretary. We are also supported by Mr. Gordon Gaffney, finance officer; Mr. Andrew Patterson, principal officer; Ms Marie-Louise Molloy, professional accountant; Ms Erin Ryle, administrative officer; and David Byrne, principal officer.

In my opening statement I will give a very brief overview of the main features of the Vote. I hope the more detailed briefing supplied in advance of the meeting is of assistance to the committee in providing a fuller picture of the work of the Department and its expenditure. As we all know, the year 2021 brought ongoing challenges from the Covid-19 pandemic which continued to impact on how we delivered services and required ongoing adaptation and innovation in order to support our objectives to enhance the lives of children and young people, adults, families and communities; to recognise diversity; and to promote equality of opportunity in Ireland.

During the year there were some minor changes to the responsibilities under the remit of the Department. There was a transfer out of functions related to education welfare services from the Department to the Department of Education and responsibility for the Balance for Better Business initiative transferred to the Department of Enterprise, Trade and Employment. Both transfers took effect from January 2021. The total provision for the Vote in 2021 was €1.923 billion which included capital carryover of €4.1 million.

In terms of the Vote, three spending areas represent almost 90% of the overall Vote spending in 2022, namely Tusla, the Child and Family Agency, early learning and childcare, and international protection seekers' accommodation. The current expenditure allocation was €1.887 billion, with a further €36.1 million allocated for capital expenditure, including capital carryover. The net allocation for the Vote was €1.884 billion when appropriations-in-aid of €39.1 million are taken into account. The final outturn for the Vote in 2021 was €1.785 billion, with a surplus of €98.5 million of which €3.2 million is to be deferred as capital carryover to 2022 leaving a total to be surrendered at year end of €95.3 million.

During 2021, Covid-19 continued to impact on spending across all areas of the Vote. In Quarter 1 of 2021, the Early Childhood Care and Education Programme, ECCE, was suspended and access to other early learning and childcare services were restricted to children of essential workers and children experiencing disadvantage. Moreover, for the remainder of 2021, there was a reduced demand for early learning and childcare owing to changes in parental working arrangements and other Covid-19-related issues. This led to savings across all early learning and childcare funding programmes, namely ECCE, access and inclusion model, AIM, and the national childcare scheme, and resulted in an underspend of €46.7m, or 7% of the allocation of €640.2 million for early learning and childcare.

The impact of Covid-19 also contributed to an underspend of €27.2 million, or 12% of the 2021 provision of €218 million for international protection seekers' accommodation and related services costs. It should be noted that restrictions on international travel resulted in lower than anticipated arrivals and demand for international accommodation. Towards the end of 2021 as we emerged from Covid-19 restrictions, expenditure across the Vote, particularly in areas such as early learning and childcare and international protection accommodation, started to rebound and this has continued apace into 2022. All other areas on the Vote also started to return to normal patterns of spending.

When I addressed the committee in June, I referenced the significant impact the outbreak of the war in Ukraine was having on the work of the Department. The demands of this situation have not abated in the meantime. The Department’s role in the humanitarian response to the needs of Ukrainians arriving here under the temporary protection directive continues to pose major challenges and has involved a significant diversion and allocation of staffing resources. The parallel and significant increase in numbers of applicants for international protection in 2022 has also placed extreme pressure on resources. The overall requirements of this response, including the use of various forms of emergency accommodation, has had, and will continue to have, a significant impact on costs in 2022 and beyond as the Department continues to deal with the twin challenges of providing accommodation for Ukrainians and other international protection applicants.

I refer also to Chapter 13 of the Comptroller and Auditor General’s Report on the Accounts of the Public Services 2021. This chapter is a follow-up report on guardian ad litem or GAL reform. As the committee is aware, GALs are appointed in child care proceedings to ascertain the views of the child and communicate these to the court. The GAL also makes recommendations to the court as to what is in the best interests of the child. The Department has acknowledged that the present arrangements for GAL services are in need of significant reform. Work has been ongoing for several years to provide the legislative underpinning necessary for this reform. The committee will be aware that the Child Care (Amendment) Act 2022, which provides for the reform of the GAL system, and will enable the

Minister to establish a new national GAL service, was signed into law on 19 July. The Department intends to publish a request for tender in the coming weeks for the development of an operating model and practice manuals for the new GAL service and legal services unit. This will build on significant work already undertaken, including costings prepared for different models of the service, the development of an IT system to be used by GALs for case management, and extensive discussions with relevant stakeholders. The Department also has sanction for a director post for the new office, and intends to recruit a

director for the service next year. It is expected that the body of work to establish the executive office and the new national service will continue throughout 2023 and into 2024. The purpose of this reform is to regulate and expand the provision of GAL services in a consistent manner across the country. The reformed service will enhance the rights of children and the capacity of the courts to make the right decisions in helping children and their families.

The reformed service will enhance the rights of children and the capacity of the courts to make the right decisions in helping children and their families. I am satisfied that it can also address the concerns raised in the report of the Comptroller and Auditor General regarding the costs of the service and the lack of transparency and oversight that exists under the current unregulated system.

Finally, in reviewing the 2021 accounts, I would like to take this opportunity to thank all my colleagues in the Department, and our partner agencies and providers, for the enormous contributions they have made in sustaining delivery on so many our objectives during 2021 and since in the face of successive unprecedented challenges from the Covid-19 pandemic and the war in Ukraine. I thank the committee members and Chairman for their attention and look forward to taking their questions.