Brian Lenihan Jnr (Dublin West, Fianna Fail)

I thank Deputy Keaveney for raising these issues on the Adjournment. I welcome the opportunity to respond as part of this debate. Of course, all children are treated equally when payments of this type are made. The Government decided in the 2006 budget to introduce a major new payment to parents of young children — the early child care supplement — under the remit of the Office of the Minister for Children. The scheme is being administered by the Department of Social and Family Affairs on an agency basis. The supplement consists of an additional payment of €1,000 in a full calendar year that is made to parents in respect of all eligible children under six years of age. Direct and non-taxable payments of €250 per quarter year are made in respect of each eligible child. They are intended to assist parents with the high cost of caring for children, especially in their early years. The parents or guardians of children up to six years of age are eligible for this universal scheme.

Eligibility for the child care supplement scheme is identical to that for the child benefit scheme, which was previously known as the children's allowance scheme. Parents who receive child benefit payments in respect of children under the age of six also receive the early child care supplement. If no child benefit payment is being claimed for a child in this State, no supplement will be paid in respect of that child.

I am pleased to deal with Deputy Keaveney's concerns about the entitlements of parents who work outside the State. When the early child care supplement scheme was introduced in budget 2006, my colleague, the Minister for Finance, Deputy Cowen, said that it was to be "a direct payment of €1,000 per year available equally to all parents regardless of their labour force status, for each child up to his or her sixth birthday". While this comment affirms that the employment status of parents is not a condition under this scheme, it does not suggest that all children under the age of six are entitled to the payment regardless of their residence or nationality.

I will describe how applications made by parents who live in the State but work in another EU state are treated. Deputy Keaveney will be familiar with the cases of people living in County Donegal who are employed in Northern Ireland. The practical application of the scheme is the responsibility of the Department of Social and Family Affairs, rather than my office. The Department, which makes the payment on my behalf on an agency basis, has direct responsibility for other family benefits which are co-ordinated by EU legislation. I will give a simple overview of how this is handled. European Union regulations, notably Regulation 1408/71, co-ordinate the payment of social and family benefits in the cases of migrant and frontier workers to ensure that nobody loses as a result of moving around the EU. Under those arrangements, a frontier worker will receive the maximum family benefits which are appropriate regardless of whether he or she is subject to the legislation of the country of employment or the country of residence. The worker is paid family benefits by his or her country of employment in the first instance. If the payment is lower than the payment he or she is due under the legislation of his or her country of residence, the latter country pays a further payment to bring the total payment up to the entitlement guaranteed under domestic legislation.

I will outline how the system works in practice. A parent in County Donegal who works in Derry is paid the relevant UK family benefits. He or she can contact the Department of Social and Family Affairs in this jurisdiction to make a claim to this State's family benefits such as child benefit and family income supplement. If the total family benefits received by a family from the UK authorities do not meet its combined family benefit entitlement under Irish law, a further payment is issued to it from the Department of Social and Family Affairs to ensure it receives its full entitlement under Irish legislation. That entitlement was increased substantially by the introduction of the early child care supplement for the parents of children under the age of six. The net result is that parents in this position will always be paid an amount that is equal to the higher level of family benefits. They are in an advantageous position when compared to those who live beside them and work in the Republic.

I am happy that the introduction of the early child care supplement has increased the family benefits which are guaranteed under our legislation to all Irish resident parents of children under six years. It is operated in a way that allows cross-Border workers to receive their full family benefit entitlements, both under Irish legislation and in accordance with the relevant EU rules.

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