Brian Cowen (Laois-Offaly, Fianna Fail)

Yes, but if one of the children is between the ages of three years and three months and four and a half, the family will receive the benefit of the pre-primary school year, which is worth much more than the yearly early child care supplement per child - in fact, it is double the amount. This amounts to a more targeted approach which will ensure the benefits of pre-school education go directly from the system to eligible children. In the past, when child care costs were high and unemployment was low, people had to pay very high rates for crèche facilities and so on. The early child care supplement was the simplest method then, but this is a far more targeted approach.

I commend the Minister of State, Deputy Andrews, for coming forward with a proposal such as this which will cost less for the taxpayer but afford a benefit for pre-school children that is greater than that obtained from the direct payment. That is the sort of lateral thinking we need to see if we are to effect the savings necessary to achieve a budgetary policy that is sustainable while ensuring we do not cut services. In this regard we are developing a service which was not there previously. This area was dealt with by direct payment to families for the purported purpose of providing child care, but since it was paid to families directly it could be used for other purposes depending on the family's circumstances.

Deputy Ó Caoláin stated that he opposed the levy, but also made the point that we do not spend enough on services. The problem is that the Deputy does not have a sustainable budget strategy. He wants us to collect less tax, spend more and create jobs. That is his position.

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