James Reilly (Dublin North, Fine Gael) | Oireachtas source

I am aware of and concerned by the sustainability issues for the early years services and have met many of the groups concerned. Annual funding in the region of €260 million is provided for the child care sector to support a number of child care programmes implemented by the Department. These programmes include the community child care subvention, CCS, programme, the early childhood care and education, ECCE, programme and a number of labour activation initiatives under the training and employment child care programmes. These programmes and, in particular, the early childhood care and education programme provide a guaranteed source of income for the participating services and given that many parents otherwise would not be able to avail of preschool care and education for their children, the funding has ensured many child care services, both commercial and community, have the resources to continue to operate.

I am aware of the rates issue and despite the budgetary position that prevailed in recent years, the Government has maintained the funding necessary to support the child care programmes and introduced new initiatives to meet changing circumstances, particularly with regard to the improved employment opportunities in the economy. As funding becomes available, I hope the capitation rates for all programmes can be increased to provide further support. This concerns the rate of pay. However, following concerns expressed by child care providers throughout the country, the issue of commercial rates on preschool services was raised with the previous Minister for the Environment, Community and Local Government and the concerns of child care providers about commercial rates were brought to the attention of officials in the Department of Public Expenditure and Reform. Officials from my Department recently met representatives of the Department of Public Expenditure and Reform in the context of the Valuation (Amendment) (No. 2) Bill 2012 that is going through the Houses of the Oireachtas and discussed the issue of commercial rates on preschool services. Moreover, I have spoken to the Minister and I am pleased to announce the Government recently has approved an amendment to the Bill to exempt not-for-profit child care providers from rates.

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