Paul McGrath (Westmeath, Fine Gael)

They said their child care costs are approximately €1,500 per month. It is as if they have to pay another huge mortgage on top of their mortgage. The payment of such large sums of money for child care is an enormous burden on young people. I assume they somehow manage to pay for child care as long as the money is flowing. They know that the period of time when they have to pay for such care will come to an end. I shudder at the thought that people in such circumstances will be made redundant, become ill and unable to work or encounter financial pressure, for example if their calculations go wrong. We would then see the consequences of the pressure that is placed on young couples.

We discussed yesterday the taxation disadvantages faced by single-income families compared to double-income families. The issue of child care costs is related because such expenses are often incurred by double-income families. Such families may enjoy financial benefits in terms of tax relief by reverting to being single-income families, who are being discriminated against at present. I cited yesterday the example of two families living side by side, each with an overall income of €56,000, but one of which is a single-income household while the other is a double-income household. The family with one income pays €7,000 more per annum —€140 per week — in income tax to the Revenue Commissioners for the privilege of being a single-income family. We may have differences of opinion in this regard, but that is wrong.

Perhaps I am spoiled because I was reared in a single-income household and, just like the Minister, I now live in such a household. We may have to pay the price for the privilege of having somebody at home to look after our children. I am worried that we are narrowing the options available to young people. Mortgages are at an all-time high when considered as a percentage of income. When I got married, the mortgage on my house was £28 per month. It seemed like a substantial proportion of my income, but within three or four years my weekly wage had increased by more than my monthly mortgage. Young people who have committed themselves to enormous and frightening mortgages do not have as a real option the possibility of setting up single-income households.

I spoke about the taxation problems of such people yesterday. Will the Minister try to do something about the child care costs faced by those who cannot choose to be part of a single-income family because they cannot afford to do so? He will tell me that the Government is using the child benefit system to help people with their child care costs, but the monthly payment the State makes to families would not pay for a week's care of a single child. The payments offered by the Government are grossly short of what is needed. The Minister has argued that if he were to offer tax relief as I have suggested, he would distort the level of equality in the system. He is correct to state that my proposal would not benefit families with low incomes and welfare incomes, but other child care options are open to the Government to assist such households.

If the Minister is to examine this matter seriously, I suggest he should consider the merits of the Australian system. Under that system, everybody is entitled to vouchers for child care, regardless of whether one is employed or in receipt of social welfare.

There is an income threshold such that the well-off about whom the Minister spoke would not qualify. However, the voucher system is very fair. Anybody, be he or she unemployed or otherwise, can cash in his or her voucher for child care.

Although I am suggesting one model, it does not represent the end of the story. The Minster, in his new portfolio, may want to consider it. I know he is prepared to examine proposals and make up his own mind thereon. I do not know how many options he has had the opportunity to consider, but I encourage him to examine the Australian system which I believe worked particularly well. There are registered crèches throughout that country.

The Australian system also regularised the sector, which is very important. Ireland has problems at present in that many child care facilities are not in the system or regularised. They need to be regularised such that standards will be set and people will know that if they avail of a particular child care facility, it will be registered and meet those standards. The system I propose would achieve this.

The Minister will probably not accept my amendment, as on Committee Stage, but he should agree to study the various types of facilities available and the options that exist. Child benefit is not the only option that should be available.

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