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

I am aware that every year a significant number of new preschool providers apply to participate in this programme. This increased demand for, and additional investment in, free preschool provision should encourage a greater numbers of applicants. I am clear that more capacity will be required; we are all agreed on that. Officials in my Department have identified a number of challenges that preschool providers who wish to expand may face, including issues of sustainability. They are working closely with the city and county child care committees and the voluntary child care organisations to identify measures to address such challenges.

The restoration of capitation rates to pre-2012 levels from September 2016 which I recently announced is one such measure. The increase which will bring capitation rates to as much as €2,850 per year for each eligible child is a guaranteed source of income and a major support for preschool providers. This was particularly evident in the difficult economic climate that prevailed in recent years when many parents would not have been in a position to avail of preschool services for their children. Additional capitation payments for preschool providers recently announced as part of the suite of Government-funded supports for children with a disability in accessing the ECCE programme will not only ensure children with a disability can meaningfully participate in and reap the benefits of free preschool education but will also assist in addressing issues of sustainability for preschool providers. Budget 2016 also includes further measures to address this issue, including investment in training and education, as well as capital funding. I will announce further details of these measures shortly.

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