Dan Neville (Limerick West, Fine Gael)

I thank the Leas-Cheann Comhairle for allowing me to bring this issue before the House and I thank, in anticipation, the Minister of State at the Department of Justice, Equality and Law Reform with responsibility for children, Deputy Brian Lenihan, for taking the matter.

I raise an issue pertaining to community child care groups which have been allocated large-scale capital funding under the equal opportunities child care programme. The groups to which I refer are located in west Limerick and are based in Kilcolman, Newcastle West, Broadford and Rathkeale. These groups must be in a position to sign contracts with Pobal within a 12 month period and the timeframe ranges from June to November 2006. However, each group must meet specific pre-contract requirements to be in a position to draw down funding, including a revised capital work plan that demonstrates how the project can be achieved with the approved funding. The principal obstacle for these groups is that they received approvals for significantly smaller budgets than those for which they applied.

Between December 2004 and December 2005, the four community groups, all based in west Limerick, have been allocated funding. As I have stated, each project received approval for significantly less than was required. Thus, St. Colman's Childcare Service, Kilcolman, received approval for €1.1 million, whereas the required total comes to almost €1.4 million. The Desmond Complex Ability Resource Centre, Newcastle West, received approval for €1 million, while its original budget was for €1.8 million. Broadford Voluntary Housing Committee, Broadford, received approval for €1 million, while its original budget was €2.13 million, and Rathkeale Childcare Limited, Rathkeale, was allocated €1.4 million, whereas its original budget was almost €2.9 million.

Pobal, which was previously known as ADM, has advised each group that it should be able to implement its project at a cost of €20,000 per child care place without reducing the number of child care places originally targeted. Pobal argues that other community groups have been able to develop child care services for a cost of €20,000 per child care place. However, examples given by Pobal are not comparable to the projects in question as they all received some additional support, such as, having a site purchased and developed by the county council, already owning a site or receiving other funding. However, this is not the case for the groups in question.

In recent months, the groups have worked on their architectural plans and their costings in order to meet the funding requirements. Only one group, namely, the Desmond Complex Ability Resource Centre crèche, is in a position to proceed with its project at present. This is mainly due to the fact that the child care project is part of a larger project and costs have been reduced. For instance, its site purchase and development costs are significantly lower than for a stand-alone child care project.

The groups have met County Limerick Childcare Committee and its partner agencies and have agreed to explore how costs may be cut. However, they have also made the case to Pobal and to the Office of the Minister for Children for additional funding to make up the shortfall. I also make that case today.

All four applications, including architectural plans, were submitted between December 2002 and December 2003. No consideration has been given to the subsequent rise in site and building costs. The groups waited for almost three years for their applications to be processed by Pobal and the Department of Justice, Equality and Law Reform.

County Limerick Childcare Committee can find no example of a group that has developed a child care project for €20,000 per child care place. When groups applied for funding, the €20,000 benchmark was not being used by Pobal or the DJELR. All four groups have already invested significantly in the development of architect plans required as part of their application. The new child care investment programme announced in December 2005 does not require architect plans for an application. An in depth needs analysis was carried out by all four groups prior to submitting applications to Pobal. One of the groups, Broadford Voluntary Housing Committee, has significant experience developing infrastructural projects, including a social housing and day-care centre, and has always delivered within budget. The EU component of the equal opportunities child care programme funding must be spent and reported by June 2007. A number of community capital projects approved but not implemented are under review by Pobal and may have their funding decommitted. This funding could be used to make these projects viable. If groups cannot proceed with projects, €4.5 million in infrastructural investment will be lost to west Limerick. The time and effort the groups have invested on a voluntary basis will be lost to a need which has been carefully researched and identified. The implementation of the four projects would have enormous benefit for the areas outlined and the west Limerick region in general.

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