Michael McDowell (Dublin South East, Progressive Democrats)

I thank the Deputy for raising the matter and giving me the opportunity to update the House on the important issue of child care and the project referred to in Limerick. I am glad the Deputy echoed the strong representations made by the Minister of State at the Department of Health and Children, Deputy Tim O'Malley, regarding this matter, as she generously acknowledged.

Child care is an important priority for the Government and we have increased funding for this important sector on a number of occasions since we first made commitments to the child care sector in 1998. The equal opportunities child care programme 2000-2006 is a key element of the national development plan and its original funding package of €318 million set in 2000 has increased to €499 million to be spent within the life of the national development plan or before the end of 2007.

The funding package has increased because the Government is aware of the importance of providing child care to support the economy and to support social inclusion through labour market participation. The Government has listened to requests from many groups such as St. Munchin's in Limerick which are seeking to build child care facilities to meet local needs. The Government has responded to those requests by making more capital funding available immediately rather than awaiting a follow-on programme to build on the momentum generated by the EOCP in community groups.

Capital and staffing grant applications for funding under the EOCP from the group in Limerick city are with my Department. Deputies O'Malley and O'Sullivan have approached my Department in regard to them. The group has been approved funding totalling €451,029 to date under the programme for its present centre, and the programme gives it annual support of more than €100,000 towards staffing costs. The group is hoping to build a new centre which will offer a wide range of services, as the Deputy pointed out.

The EOCP is a seven-year development programme which aims to increase the availability and quality of child care to support parents in employment, education and training. The demand for capital grant assistance from groups such as St. Munchin's was such that I considered it important to increase the capital provision for the current programme. Following discussions with my colleagues, particularly the Minister for Finance, additional capital funding of €90 million was made available over the period 2005 to 2009 in this year's budget, of which €50 million is being made available under the current programme and the remaining €40 million will flow under the next phase of the post-2006 EOCP. The total funding available for the programme is €499.3 million and includes an increased provision of €205 million for capital developments.

I announced an allocation of almost €35 million in capital funding to community-based not for profit groups in December 2004. The availability of the additional capital funding will enable me to make further capital grant assistance available over the coming months and years to groups which address significant child care service gaps and where the project proposal represents good value for money. In light of this, St. Munchin's family resource centre has been advised that while its project was not prioritised for immediate funding in December 2004, it is being reconsidered with all the other applications on hand and I hope to make further significant capital commitments during 2005 and thereafter to good projects which link with the aims of the programme in supporting child care needs of parents in employment, education and training, offering value for money and filling a service gap in their local area.

Efforts are being made to achieve a good geographical spread through the appraisal and approvals process. Limerick city and county has been approved almost €16 million under the child care programme with 60 capital grants approved to establish either new or quality enhanced community-based not for profit or private child care facilities. The county has also benefited from 36 staffing grants to community groups that have a focus on disadvantage. This funding to child care providers in Limerick will lead to the creation of more than 1,300 new child care places and to the support of 1,340 existing places. Limerick city and county child care committees also receive annual funding to support their developmental work.

I understand from the Area Development Management review that support allocated to the city and county of Limerick under the EOCP compares positively with other counties in the southern and eastern region. The EOCP is the Government's response to the need to develop a child care infrastructure to support parents in Ireland. There has been significant progress in the creation of a good child care infrastructure and I hope that the Deputy will acknowledge the progress made to date in the city and county of Limerick and will be reassured that every step is being taken to further develop services in the area as expeditiously as possible.

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