Dáil debates

Tuesday, 5 April 2022

Childcare Fees: Motion [Private Members]

 

8:00 pm

Photo of Jennifer WhitmoreJennifer Whitmore (Wicklow, Social Democrats) | Oireachtas source

I welcome the opportunity to discuss the key issue of the childcare sector and I thank Sinn Féin for tabling this motion for debate.

For years, parents, children and early years and childcare staff have been let down by successive Governments, which closed their eyes and ears to the significant investments the sector required. It will be difficult for our system to catch up. Covid was an eye opener in terms of exactly how important this sector was to the economy. It had often just been seen as an issue for young families, one that had nothing to do with anyone else in society. Without a strong and affordable childcare sector, however, it was made clear that the economy would crumble. It was primarily women who were unable to take part in the workforce.

We need to value childcare and create a society where choice is available. Each family is different, each family's requirements are different and each child is different, in that what suits one child might not suit another. Therefore, there needs to be significant choice for parents in the provision of early years and childcare services. It needs to be a decision for a mother or a mother and a father as to what services they want. When they make that choice, the State needs to support them in it through the provision of quality, affordable and accessible services. We have not seen that happen to date, though. There is a large gap.

I acknowledge the efforts that the Government is taking to address the problems of high costs and low pay in the sector. These efforts include the transition fund from the employment wage subsidy scheme, EWSS, the JLC's announcement on the employment regulation order for the sector and the full roll-out of the core funding model, which I hope will occur this September. I acknowledge that the Government has invested €221 million under the budget. Compared with what previous Governments have done, it is a significant amount, but the bar was low.

There are two key points to the Sinn Féin motion. The first relates to whether that amount is enough money. While we can agree on the destination, what is in question is how quickly we can reach that destination. If we are asking ourselves whether the €221 million is enough, the Social Democrats would have to say "No". Parents in Ireland pay some of the highest fees in Europe, childcare staff are some of the lowest paid workers in the State and quality within the sector does not adequately reflect the high fees paid by families. Ireland spends the second lowest amount on early childhood education and care in the OECD. The Minister views his capping of fees at 2021 levels as a positive because fees are being capped for the first time, but he is actually capping them at the highest level in the OECD.

I understand the Minister's two-phased approach of dealing with staffing and dealing with pay. Although that needs to be done, childcare is a partnership between the provider, the parents and the State. In that jigsaw, the parents have not had a fair shake. When we discuss increases in the cost of living, we talk about fuel and food, but childcare costs place major stress on families. We have heard about how some families stall having children or do not have children. The cost of childcare impacts on every element of people's lives. Speaking as the parent of four children and whose youngest is six years of age, I know the relief when you get to the point where you are not paying out that money anymore. It is a constant stress on any family, particularly those on low wages.

Sufficient investment has not been made. In crisis situations like Covid, we have seen what the State can do and how much money can be provided when there is the political will. We have seen that in the energy and fuel crises, where €400 million has been provided for the electricity rebate and €320 million has been provided to cover cuts in fuel excises. While these measures were necessary, why was the same level of investment and strength of political will not shown in the childcare crisis, an issue that has been placing great burdens on families, particularly women? Women have been prevented from reaching their full potential in their careers and parents have had to decide to have one child instead of two. Where was the political will when it came to this matter and where was the money behind that will? It is difficult to understand. The Minister is providing money as part of the budget, but the EU has been telling us this for years and the OECD has raised the issue of affordable childcare with us because of the low levels of labour participation.

External pressures have indicated to us that we need to get this sorted, but we still have not done so.

The other issue raised by this Sinn Féin motion relates to the JLC process. We have the matter of fees and whether there should be more investment to assist parents with the costs of childcare. The other element is the process itself, in addition to the timeframe and the timeline. I am hearing from providers that they are concerned. There is a lot of uncertainty at present. I understand that the JLC process is statutory in nature. It has to be confidential and it has its structures and phases to go through, but that is not helping the providers on the ground, especially the small providers who are very worried about what this will mean for them. The difficulty, and I have raised this with the Minister, is if there is not an agreement that will become clear around July or August. People have to plan. What does it mean and what will happen if there is no agreement? How do people plan for September when providers are meant to be reopening? There is all this uncertainty. Businesses need certainty to survive and it is an uncertain process. The Minister does not have any control over that process but the level of uncertainty providers are going through is making it very difficult for them. What is plan B? What happens if there is no agreement? If the Minister could communicate regarding what plan B is for providers, that would ease some of the concerns I am hearing. It is not good enough to say it has gone into this confidential process and we will tell providers whether that process has worked a month before we expect them to reopen. That is not good enough for people.

The other issue I ask the Minister to be cognisant of is the need to avoid having a two-tier early years and childcare sector. We have the big providers that because of the function of their size, and the fact they have more capacity, can get more funding, but we must not disadvantage smaller providers. This comes back to the choices made by families. While one family may want to place their child with a big provider, many families do not. Many want that smaller setting because it is more family oriented and provides a different caring environment for children. I ask that the Minister is cognisant of making sure that does not happen and supports those smaller settings as we transition. It is a necessary transition and was always going to be challenging, but there are measures he can take to make sure there is not too much concern, stress or pressure put on those smaller providers in particular.

This is a crucial process. I ask the Minister to review it to see whether there is something he can do in the event the JLC process does not come to an agreement because that is a major risk. I ask the Minister to look into that.

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