Ciarán Cannon (Galway East, Fine Gael)

I thank Deputies Aengus Ó Snodaigh, Joan Collins and Michael Conaghan for raising this issue. I understand the importance of assisting parents to participate in further education and training courses by supporting child care provision. The child care support that has been provided in the crèches in question can be made available in other local childcare services so parents will not lose out.

I propose to explain the background to this issue. Until September 2010, my Department provided funding to vocational education committees and FÁS to provide child care support for participants in a range of further education and training courses, either by VECs in crèches they own or by providing a weekly subvention to parents who would source child care locally. This subvention was set at a maximum of €63.50 per week. Alongside this scheme, the Department of Children and Youth Affairs provided support of up to €100 per week under the community child care subvention, CCS, scheme to certain eligible participants.

With the different schemes in operation, inequalities and inefficiencies arose. For this reason, as part of budget 2010, a decision was taken to explore the potential for rationalising the child care support schemes in operation under the CCS framework to deliver improved supports in a more efficient, transparent and equitable way. Following discussions, the child care education and training support, CETS, scheme was established from September 2010. Under CETS, community and commercial crèches, including VEC owned crèches, can tender to provide free child care places for participants in a range of further education and training courses. VECs and FÁS advise the Department of Children and Youth Affairs on demand and the Department contracts with successful tenderers to provide the required places. Since its inception, weekly subventions under the CETS scheme have been €170 per child per week, an increase from the previous maximum level. However, from September 2012, this figure is being reduced to €145 per place and crèches may seek a contribution of up to €25 per week from participants. This still represents a significant improvement in the level of support available.

A number of VECs own crèches and some have indicated that these may not be financially viable under the new arrangements in the long term. This is mainly because their operating costs are higher than those of commercial or community crèches, which are maintaining financial sustainability under the new model. In 2010 and 2011, my Department provided additional grant aid to VECs, including City of Dublin VEC, to assist in the transition to the new scheme, but this is not sustainable in the long term, as VECs were informed from the outset. My Department is engaging with the VECs which are experiencing difficulties, the Irish Vocational Education Association and relevant employee representative organisations to resolve any issues locally.

Under the CETS programme, the places that were provided in VEC crèches can be made available to alternative local child care services, thus ensuring there is no reduction in the number of places available to parents participating in further education and training.

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