Breeda Moynihan-Cronin (Kerry South, Labour)

I welcome the opportunity to raise this important issue this evening. Unfortunately, it is not the first time I have pursued the matter in this House, which refers to the proposed removal of staffing grants from certain child care facilities in County Kerry from next September, under the equal opportunities childcare programme, EOCP.

In recent months many community based, not-for-profit, child care centres and services in County Kerry and elsewhere received letters from the Department of Justice, Equality and Law Reform stating that a review was being initiated which would, in effect, result in the loss of staffing grants from next September.

These grants are used for staff wages and costs and are a vital source of income for child care centres and crèches. They are usually paid for a period of three years to allow a facility to become financially sustainable. The departmental review proposes that after September next only groups in very disadvantaged areas will receive staffing grants.

The letter asks child care facilities to review their services and their fee structures so that, where possible, they may become sustainable from 1 September 2005 through a fair and equitable fee structure. In other words, if one does not fall into the "very disadvantaged" category, one has until 1 September to become financially sustainable by pushing up fees. The Department will take away the staffing grants, and child care facilities must increase their fees to make up the shortfall.

This is a simple cutback and an attempt to starve child care services in County Kerry and elsewhere of funding. It is an attempt to force child care services to increase their fees and to make child care less affordable to families and lone parents.

I raised the matter regarding the situation at the Tír na nÓg child care service in Ballydesmond, on the Cork-Kerry border, which is experiencing funding difficulties. I recently received representations from South Kerry Development Partnership on this same issue. The child care co-ordinator there informs me that this threat to staffing grants has caused untold worry and confusion in pre-school, crèche and child care facilities in County Kerry.

At a recent meeting of community child care groups in Kerry, concerns were expressed about the plan to remove staffing grants. It has been reported to me that standards cannot be maintained in these facilities if EOCP funding is in jeopardy. Child care committees are reaching burn-out and are already finding it difficult to get new staff. According to local child care centres, the removal of staffing grants would result in reduced places for children, further increases in fees, reduced opening hours, staff redundancies and the closure of some services.

Will the Government sit back and ignore such warnings from those who work at the coalface of the child care sector? What does the Government mean by "disadvantage"? It is a very woolly statement. There is disadvantage in every area. It could apply to rural or financial disadvantage. The Minister should outline what he means. Such talk of disadvantage is merely a cover-up for this cutback. My party leader, Deputy Pat Rabbitte, raised the matter this morning, and it was rich to hear the Taoiseach say the Government is giving the money through child benefit. Child care facility funding was not meant to come under child benefit.

The child care co-ordinator in Kerry has rightly pointed out that these changes, if introduced, will have two major consequences. The most vulnerable families in the community will lose out, especially in rural and isolated areas, which are disadvantaged areas. Unemployment will increase because parents will not be able to avail of affordable child care when in training or education. They will have to stay at home and care for their children when their local crèche increases its fees as a result of the Minister's proposals.

There is disillusionment among child care workers at this decision. They are being placed in a financial straitjacket by this so-called review of staffing grants. Many crèches and child care centres will be unsustainable and will have to close their doors.

I appreciate the Minister came in for the Adjournment debate. He should not pursue this review and should assure child care facilities around the country that staffing grants will not be removed and that he will allow such facilities to maintain and enhance their existing level of services.

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