Dáil debates

Thursday, 14 May 2015

Topical Issue Debate

Child Care Costs

2:50 pm

Photo of Terence FlanaganTerence Flanagan (Dublin North East, Independent) | Oireachtas source

I thank the Minister for attending to take this Topical Issue debate and the Ceann Comhairle's office for giving me the opportunity to raise what is an important matter that has been debated for the past ten or 15 years, namely, the high cost of child care. The financial strain placed on families, particularly young families, by having to pay €2,000 per month for two children to be kept in child care facilities is, as the Minister knows, unfair on parents. It creates difficulties for families' budgets, given the other cuts people have had to take in recent years because of the country's economic problems. For example, they must pay property taxes, water charges and USC. The high cost of child care has made it financially unfeasible for both parents to work. It makes more sense for one of them to give up work to look after their children, even though they desire to return to the workforce. As the Minister is aware, a study entitled, The Baby Brain Drain, concluded that 3,000 new mothers left the workforce annually, giving rise to a figure of €68 million in recruitment and training costs. This is having a detrimental effect on the economy. We must keep women in the workforce, contributing to the tax coffers, but doing so is uneconomic for them.

My colleagues and I in Renua Ireland have devised a policy. With the economic position improving, we must consider providing a tax credit for parents and crèche operators to help the hard-pressed, squeezed middle. Many families are being sandwiched by costs and cuts.

The inflexibility of maternity leave arrangements needs to be examined. We propose that six months of maternity leave be taken by both parents, with three months being taken by each, with the leave being renamed as "parental leave".

The local property tax was to provide money to improve communities, but that has not happened. In 2013 the Commission on Taxation recommended the introduction of a site valuation charge. This would have ring-fenced money and ensured the availability of more affordable child care facilities in communities, thereby relieving families of an unfair burden. I plead with the Minister to consider this suggestion on behalf of families. Many talented women are denied an opportunity to contribute to and play their part in the workforce because of exorbitant crèche fees. Will the Minister outline his plan of action? He is in discussions with the Minister for Finance and has set up a cross-departmental group that will make recommendations by the summer on how to deal with this issue. A second year of the early childhood care and education, ECCE, scheme has been mooted.

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