Mary Butler (Waterford, Fianna Fail) | Oireachtas source

I listened intently to what the Deputy said. The one thing we have to consider is that this is a voluntary scheme. Some 90% of providers overall have signed up to it but, as the Deputy said, it varies from 81% in some areas to 100% in others. There are positives here in that there is a total annual budget of €221 million to support the childcare sector. This includes €138 million to support staffing costs and improve pay and conditions; €25 million to support administration, incorporating the old programme support payment budget of €19.4 million; €20 million to reflect increases in non-staff overheads; and €38 million to support the employment of graduates. These are the key determinants of delivery costs. Capacity does not change from week to week, which provides income certainty for the providers.

What also has to be looked at in respect of the inflationary impacts is that the total funding package for core funding, an allocation of €20 million, is included to contribute to non-staff overhead costs. An additional €25 million is also available for administrative costs, which was not there previously. Some of the providers have welcomed this. I have spoken to many providers in my area. Some were apprehensive about signing up but I am very hopeful that more providers will join once the scheme is up and running. I will certainly take on board the points the Deputy made about engagement and the fact that 19% of providers in his area have not signed up.

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