Joe Carey (Clare, Fine Gael)

I strongly support this Fine Gael Private Members' motion. It has been obvious for some time that one of the most pressing needs of today's society is to support parents as they bring up young families and attempt to balance home and work commitments. The State must ensure that the hardships currently experienced by many families across the country are eased and a genuine choice is offered to parents.

Child care costs continue to soar — they have increased by 23% in the past two years. As the cost of living increases, many families with two working parents are locked into a vicious pattern of trying to make ends meet. It is time for the Government to listen to these families and to put them first.

Deep concern has been expressed about the new proposed child care subvention scheme by parents and child care providers throughout the country. Parents are rightly worried about the increase in child care costs and not-for profit crèche providers are facing the real prospect of closure . Newly built community crèches, which promised a better future, now face the real prospect of lying idle. With this, parents in receipt of social welfare payments will have little incentive to return to work or resume education or training if the scheme goes ahead as planned.

The calls for the scheme to be altered are loud, clear and comprehensive. In my constituency, I wish to highlight in-depth research carried out by the Clare community-based not-for-profit child care providers. Their findings, which represent the views of 18 community child care providers in County Clare, confirmed that if the scheme goes ahead as announced the quality and standard of existing services will suffer and child care places will be lost. The narrow definition of "disadvantaged" as set out by the proposed scheme will have the effect of creating a new poverty trap for those who wish to take advantage of new work opportunities, pay rises, seasonal work or education and training where welfare payments are not retained. The lack of consultation with those working within the sector on a day-to-day basis, even by the Government's standards, is a mark of appalling arrogance on the part of an increasingly out of touch Administration.

I will highlight two projects in County Clare which will be adversely affected. The first project is based in an urban setting and has 78 children. Parents of 59 of these children, or two thirds of them, are in receipt of social welfare payments. The total operating cost is €420,000, with expected fees of €280,000 and a staffing grant of €130,000, thereby leaving a €10,000 shortfall. Based on the current enrolment, the subvention allocated will be €75,000, which will lead to an annual loss of €65.000. To offset this loss, fees will have to rise by almost one third in most cases.

The second project is located in a rural area with no similar service for 20 miles. The centre caters for 83 children, who are charged €100 per week for day care and €40 for play-school. Based on the current proposals these fees will have to rise to €180 and €72 respectively, equivalent to an 80% increase. In practical terms these proposals will render this service unsustainable, resulting in a reduction in opening hours or a greatly reduced service. In such rural areas the consequences will be devastating.

I wholeheartedly support this Fine Gael Private Members' motion. I appeal to the Minister to listen to our argument. It is clearly not acceptable that parents on low incomes are expected to wait for four months for clarity on this issue. Parents and community child care providers, such as the one in County Clare, must not be left in the dark. The scheme must be amended. It is time for the Government to get back in touch with the needs of families.

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