Frances Fitzgerald (Dublin Mid West, Fine Gael)

-----about which the Minister of State, Deputy Jan O'Sullivan, will speak.

Pressures on credit exist but they will be dealt with by creating a microfinance fund and ensuring the partial credit guarantee scheme will work. These are the actions we must take if we are to create an economic environment that will support the creation of jobs. As I stated, creating jobs is what will help the families, men and women of the country. It is a priority of the Government and we have taken action in every area to ensure job creation will be a reality.

Another priority with regard to the budget was to be fair and ensure we protected those who needed protection. I would argue that many initiatives and decisions taken in this budget do protect families and children. For example, schools in disadvantaged areas will continue to be prioritised for targeted supports. The overall number of resource teachers and SNAs will be maintained, which is incredibly important for families and children who need those kind of supports. There have been changes and the scheme is being reviewed. Different types of decisions have to be made about the use of SNAs. We have to examine some of the research on outcomes for SNAs that suggests varying approaches that are needed in schools in order to help children. That is being done.

Deputy Crowe referred to the mental health difficulties of young people. I support what he said about the huge challenge we are facing in supporting our young people who are experiencing mental health difficulties. We know this is a very real problem and that alcohol is a major factor. It is important to note, however, that in the budget €35 million has been ring-fenced for the development of mental health teams around the country. It is critical that has been ring-fenced and it has been done by this Government. It will be a support to those young people who need it and to families throughout the country.

Likewise, in the area of disability there has been a reaction to one element of the budget. Let us also point to the fact that €50 million has been ring-fenced under the leadership of the Minister of State, Deputy Kathleen Lynch, for disability funding for those who need it. In addition, important capital projects are getting support, including the National Children's Hospital and other initiatives such as youth cafés.

We have given certainty to families. Some Deputies spoke about the worries people have had. I agree that families are very concerned about the future. How could they be otherwise, given the fiscal legacy the Government has inherited? However, the budget has given security to families about their incomes for the next period. We have said we will not be increasing income tax or cutting core welfare rates. That provides security to families and certainty concerning their incomes in the coming year.

Of course there are difficult budgetary measures. How could one possibly deal with the scale of this financial crisis and deficit without difficult decisions that have an impact? However, we have tried to take tough decisions in as fair a way as possible. For example, the pupil-teacher ratio has been maintained, which is important. People were concerned about that but the Government has managed to maintain it. It is important to have a balanced and honest discussion here about the difficulty of the choices that would confront any government at the moment. Many of the initiatives have been supported and maintained by the budgetary decisions taken yesterday.

I am privileged to have responsibility in Government for children and youth affairs. More than one-third of Ireland's population is less than 26 years of age. Restoring our economic fortunes and addressing our national debt are essential if the future prospects of our youngest citizens are to be secured. A provision of €408 million has been made for the Department of Children and Youth Affairs next year. There is also provision for some capital spending. This is a significant level of provision for families and children I will speak later about the provision that is being made under the health budget, which has not yet been transferred to my Department.

Like other Departments, I have been involved in the comprehensive review of the expenditure process. We have examined every area of expenditure as part of this process. One has to do that, as we have a dedicated Department. Given the scale of the challenge, my Department has had to look carefully at its expenditure. I have critically examined the priorities and have tried to streamline services and resources as effectively as possible in order to meet the fiscal challenge that every Department has been asked to meet.

The challenge for all of us who work in the public service today, or who provide services funded from the public purse, is to maximise policy outcomes and service delivery. Under the comprehensive review of expenditure, savings of some €16.5 million have been agreed by my Department for next year. That process, which has been initiated, will continue so that the reform of programmes and schemes identified under the comprehensive review of expenditure generates the efficiencies and improvements in outcomes that are possible within the resources available. The Government is committed to improving outcomes for young people, in particular through transforming child and family services and the reform of funding streams and delivery mechanisms across all programmes to make the best possible use of resources.

Before going into the detail of where we will make those savings and changes, I would like to draw attention to the significant commitment by the Government to maintaining the universality of the free pre-school year in early childhood care and education, known as the ECCE programme. Given the budgetary constraints we are facing, I am pleased to say that in line with the programme for Government the universal free pre-school year is being maintained. We currently have 65,000 young people attending that programme, and next year the figure will be 68,000. Some 95% of all our three and four-year-olds are now attending that scheme. I believe it is important to maintain the universal nature of that programme. It is important for early childhood development, including preparation for school and the embedding of skills that are critical to achieving improved outcomes in literacy and numeracy.

It was interesting to read the OECD's recent economic review of Ireland, which spoke of the importance and great potential of our human capital - that is, our people and in particular our young people. They comprise our future workforce, innovators and leaders. The OECD report talked about early intervention and investment in our young people as an economic driver. We do not often speak about that, but it is the truth. The free pre-school year is an investment in our human capital and in the country's future prosperity. We will recover from our economic difficulties. In time, too, the generation of children benefiting from this programme will repay our investment by proving the long-term value of investment in early education. For those reasons I am delighted this universal free programme has been maintained. Demographic factors mean there is an increase of some 3,000 in the number of children participating in the programme next year and they will require additional funding. As a result, the programme will cost €175.8 million in 2012, which is an increase of €9.8 million. I have received additional funding for that.

In addition to the early childhood care and education scheme, the other two main programmes of support for childcare operated by my Department are the childcare education and training support, or CETS programme, and the community childcare subvention programme. All three programmes are being retained but some revisions are being made to certain payment rates and subvention levels under each programme. Under the ECCE scheme, for example, I will change the staff-to-child ratios from 1:10 to a ratio of 1:11, which is well within international norms. I will amend the Child Care (Pre-School Services) (No.2) Regulations 2006 to accommodate that change. This increase will give the majority of pre-school services some flexibility to manage a modest reduction in the capitation rates, which I am introducing from next September. A reduction of €2 per week, or approximately 3%, will be made to the capitation rates paid to providers. The reduction in capitation rates will achieve savings of €2.2 million in 2012 and €5 million from 2013 onwards. Notwithstanding these reductions, the funds available under this programme in 2012 will increase by €9.8 million or 6%. Some changes have to be made therefore, but the universality of programmes will remain for all children.

The childcare education and training support programme provides qualifying FÁS and VEC students with free childcare places for the duration of their courses. The Department pays childcare services €170 per week for each full-time place contracted under the programme in some 1,600 community and commercial facilities. This is the only category of parent which currently pays no contribution towards the cost of meeting child care requirements. From September 2012, the Department will reduce the weekly price paid to services to €145 per full-time place. The services will be allowed to charge a weekly fee of not more than €25 per full-time child care place, with pro rata reductions applying for shorter hours. In practice, it is expected that the charge passed on to parents will be less than the €25 reduction owing to cost efficiencies and competition on fees. In many places, it will be closer to €10 or €5.

Under the community child care subvention programme, parents with a social welfare entitlement or who are in receipt of family income supplement qualify for subvention rates of up to €100 per week for full day care. The parents concerned must be using a community service to avail of the programme. Payment is made to the service and allows community providers to charge reduced fees to eligible parents. From September 2012, the higher subvention rate of €100 will be reduced by €5 to €95. To qualify for the higher rate, it will be necessary to have an entitlement to a medical card, as well as a social welfare entitlement. No reduction is being made to the education welfare service operated by the National Educational Welfare Board.

There are a number of other changes, but I do not have the time to go into them in detail. They have been circulated in my speech.

The capital budget for 2012 will include €1.5 million for youth projects, a significant increase from 2011, which will support the further nationwide development of youth cafés. These are a priority for the Government, in particular in providing alcohol-free venues for young people. There is a dedicated subhead in the budget under the Health Estimates, totalling €568 million, for child and family services under the HSE. When the new child and family support agency is established, this will be part of the agency's budget, pending some changes which might be necessary when considering the service plan for the HSE.

Our children are our future, but if we do not bring a halt to the economic and fiscal chaos which has enveloped the State, what future are we leaving them? This thinking informs the decisions we have made to bring our budgets under control and manage our economic problems.

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