Brian Cowen (Laois-Offaly, Fianna Fail)

I am pleased we have reached the end of the debate and that finally there is something on which I can agree with Deputy Burton. Her sentiments are close to mine on the question of ensuring that we do not end up with an institutionalised setting for child rearing. Obviously crèches and child minding services have a role to play, but it is not an exclusive place. There is a need to examine pragmatically and practically what can be done in regard to providing family support. Making the situation more complicated than it is already would be a point of departure for me in terms of how one might go about solving the problem. It is just part of the problem. People must be able to make choices. There is not one uniform way of dealing with the issue. The tax system is not the only way to deal with the matter. As Deputy McGrath said, there is a basic problem in that those who most need child care facilities, including low income families, would not be able to avail of such a tax credit. The basic issue is how to deal with this problem.

Child benefit was not designed to deal with this issue. At least it has a universal element in that it provides support for families with children. Thankfully, the changes in tax policy reduced the tax wedge in that people are moving out of poverty. People now have more opportunities and more jobs are being created in the service industries. Non-Irish people are now taking up many of the jobs in traditional service industries, which is an indication of how people are changing their views on the type of trade or profession they would like to take up.

Significant sums of money are being spent on capital allowances for employers, child benefit, which amounts to almost €2 billion, and the programme to which the Deputy referred. However, more needs to be done on the supply side. More than €330 million has been spent on the capital budget for 2005-09 under the equal opportunities programme. This provides for an additional 17,000 places. There must be flexibility. We should not try to complicate the issue further when trying to devise a method whereby people can deal with the issue of child rearing services. We are all aware of the high cost of this service. Child benefit was not introduced to replace or supplement this cost, but it is extra money available to families. Interest rates are low, even though property prices have increased. This has resulted in higher mortgage repayments. Higher wages and more labour friendly tax policies have enabled people to deal with these issues. People are spending a great deal of money for some of these services, but they are in a position to do so. It would be unthinkable 20 years ago when salaries were so low.

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