Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I thank the Deputy. The objective of the EWSS is to support employment and maintain the link between the employer and employee insofar as is possible. It has been an important part of our response to the Covid-19 crisis. While the criteria for eligibility for business in general is based on a reduction in turnover as a result of the pandemic and having regard to the importance of maintaining the provision of childcare facilities so as to enable parents to continue in or take up positions of employment, the legislation provided that childcare businesses in possession of tax clearance and registered in accordance with section 58(c) of the Child Care Act 1991 are eligible for EWSS. On budget day, I announced an extension of the scheme in graduated form until the end of next April. Since the introduction of EWSS, there has been detailed engagement between my Department and the Department of Children, Equality, Disability, Integration and Youth. Analysis undertaken by the latter Department and the Minister, Deputy O'Gorman, informed the approach taken with regard to the childcare sector.

I assure the Deputy that the childcare sector will continue to benefit from the EWSS exemption until the end of April. As announced by the Minister, Deputy O'Gorman, it is intended to put in place a transition fund between May and August 2022 which early learning and childcare providers can access. From September of next year a new funding stream will be in place to support providers in meeting their operating costs in return for a commitment that fees for parents will not increase.

To answer the Deputy's question, a coherent approach has been taken with regard to the exit strategy from EWSS and the introduction of a new funding stream for the childcare sector. As such, I do not believe there is a need for a further extension of EWSS for the sector because it should be accommodated between the extension of the scheme and the work the Minister, Deputy O'Gorman, will do.

See this speech in context