Breeda Moynihan-Cronin (Kerry South, Labour)
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I welcome the opportunity to raise this important issue this evening. Unfortunately, it is not the first time I have pursued the matter in this House, which refers to the proposed removal of staffing grants from certain child care facilities in County Kerry from next September, under the equal opportunities childcare programme, EOCP.

In recent months many community based, not-for-profit, child care centres and services in County Kerry and elsewhere received letters from the Department of Justice, Equality and Law Reform stating that a review was being initiated which would, in effect, result in the loss of staffing grants from next September.

These grants are used for staff wages and costs and are a vital source of income for child care centres and crèches. They are usually paid for a period of three years to allow a facility to become financially sustainable. The departmental review proposes that after September next only groups in very disadvantaged areas will receive staffing grants.

The letter asks child care facilities to review their services and their fee structures so that, where possible, they may become sustainable from 1 September 2005 through a fair and equitable fee structure. In other words, if one does not fall into the "very disadvantaged" category, one has until 1 September to become financially sustainable by pushing up fees. The Department will take away the staffing grants, and child care facilities must increase their fees to make up the shortfall.

This is a simple cutback and an attempt to starve child care services in County Kerry and elsewhere of funding. It is an attempt to force child care services to increase their fees and to make child care less affordable to families and lone parents.

I raised the matter regarding the situation at the Tír na nÓg child care service in Ballydesmond, on the Cork-Kerry border, which is experiencing funding difficulties. I recently received representations from South Kerry Development Partnership on this same issue. The child care co-ordinator there informs me that this threat to staffing grants has caused untold worry and confusion in pre-school, crèche and child care facilities in County Kerry.

At a recent meeting of community child care groups in Kerry, concerns were expressed about the plan to remove staffing grants. It has been reported to me that standards cannot be maintained in these facilities if EOCP funding is in jeopardy. Child care committees are reaching burn-out and are already finding it difficult to get new staff. According to local child care centres, the removal of staffing grants would result in reduced places for children, further increases in fees, reduced opening hours, staff redundancies and the closure of some services.

Will the Government sit back and ignore such warnings from those who work at the coalface of the child care sector? What does the Government mean by "disadvantage"? It is a very woolly statement. There is disadvantage in every area. It could apply to rural or financial disadvantage. The Minister should outline what he means. Such talk of disadvantage is merely a cover-up for this cutback. My party leader, Deputy Pat Rabbitte, raised the matter this morning, and it was rich to hear the Taoiseach say the Government is giving the money through child benefit. Child care facility funding was not meant to come under child benefit.

The child care co-ordinator in Kerry has rightly pointed out that these changes, if introduced, will have two major consequences. The most vulnerable families in the community will lose out, especially in rural and isolated areas, which are disadvantaged areas. Unemployment will increase because parents will not be able to avail of affordable child care when in training or education. They will have to stay at home and care for their children when their local crèche increases its fees as a result of the Minister's proposals.

There is disillusionment among child care workers at this decision. They are being placed in a financial straitjacket by this so-called review of staffing grants. Many crèches and child care centres will be unsustainable and will have to close their doors.

I appreciate the Minister came in for the Adjournment debate. He should not pursue this review and should assure child care facilities around the country that staffing grants will not be removed and that he will allow such facilities to maintain and enhance their existing level of services.

Michael McDowell (Dublin South East, Progressive Democrats)
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I thank Deputy Breeda Moynihan-Cronin for affording me the opportunity to update the House again on this issue. I understand that the matter was also raised on the Order of Business.

The equal opportunities child care programme is the Government's key response to the need to develop child care to help to support the needs of parents, with a particular emphasis on those who may be in employment, education or training to prepare for employment. The programme for Government and the progress of the equal opportunities child care programme represent confirmation of the Government's commitment to developing child care services and to keeping child care at the forefront of its social agenda. The EOCP has both an equal opportunities and a social inclusion perspective and aims, among other things, to increase the supply of centre-based child care places by 55% by the programme's end. The broad objectives of the EOCP are to improve the quality of child care, to maintain and increase the number of child care facilities and places and to introduce a co-ordinated approach to the delivery of child care services.

The first meeting of the expert working group on child care established under Partnership 2000 was held within a month of the Government changeover in 1997. I have to say, without any element of rancour, that all the evidence shows that, unlike the case of the previous Government, child care has been high on the agenda of the present Government since that time. The Government has moved consistently, promptly and purposefully to facilitate the development of a top quality child care programme throughout the country. The achievements in child care are a testament to that commitment and have helped in no small way to support the child care needs of parents in employment, education and training as well as helping many parents to break the cycle of disadvantage. Since it was launched in 2000, the total funding package for the 2000 to 2006 phase of the EOCP has increased from €317 million to €499.3 million, or by 57%, the most recent increase being €50 million in additional capital in the budget for 2005. I am grateful to my Government colleague, the Minister for Finance, Deputy Cowen, for making that possible.

I contrast that, however, with the sad state of assistance in this area under the previous Government. I can only describe it as very sad.

Breeda Moynihan-Cronin (Kerry South, Labour)
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That is the past. The Minister should not go back.

Michael McDowell (Dublin South East, Progressive Democrats)
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Some people have a brass neck to raise these issues when in those days nothing was done. Since budget day last December, I have already made one significant announcement of over €25 million in additional capital funding and I expect to make another such announcement in the near future. The programme has already created more than 20,000 new child care places and a further 16,000 have been commissioned using EOCP funding. The programme has exceeded our expectations in terms of achievement. The programme also includes a measure which offers grant assistance towards the staffing costs of community-based child care services which offer child care services to disadvantaged parents who may be in employment, education or training. More than 775 community based, not-for-profit projects receive ongoing staffing grant assistance and about €30 million of EU and Exchequer funding goes towards this measure each year.

It was originally envisaged that some groups would receive such funding for a period of three years as they moved towards sustainability, which is normally achievable if the groups are operating at full capacity and with a level of fees which enables them to break even. Some of the children who go to these centres are disadvantaged while other parents are in a position to pay the full commercial rate for the child care they receive. Other groups, particularly in very disadvantaged areas, are likely to offer services to a client group who are unable to meet the economic fee structure and these services will, therefore, require ongoing staffing grant support to ensure that they can continue to support the child care needs of their disadvantaged client group. This is particularly important in assisting families to break the cycle of disadvantage.

Deputy Breeda Moynihan-Cronin will be aware that levels of staffing grant assistance have been maintained and guaranteed at existing levels until 31 August 2005 for all groups, regardless of circumstances, whose first three-year funding had elapsed, unless the level of service being offered has declined significantly below that which they had originally undertaken to deliver.

My Department is examining a wide range of options to ensure that staffing grant assistance is provided on an ongoing basis and in a fair and equitable manner for those services which cannot support themselves with a fair, equitable and economic fee structure due to the level of disadvantage of their client groups. Every service, especially those in Kerry about which the Deputy is concerned, will be given an opportunity to present its case before any change is made to funding levels. I hope to be able to increase the level of funding for those services which are at the bottom of the scale — the most disadvantaged. We hope to be in a position to take firm decisions on future arrangements in the near future and as soon as we do, we will advise all groups accordingly. Every Deputy will agree with me that it is in the interests of society to ensure that the ongoing financial supports which are made available under the equal opportunities child care programme specifically target those who experience the greatest disadvantage in society.

It is also noteworthy — again I emphasise this by way of contrast to what happened before this Government took office — that the Government has increased child benefit by 272% since 1997. This is the uncaring Government which the left has castigated for many things, according to what we read in the newspapers.

Breeda Moynihan-Cronin (Kerry South, Labour)
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They would not be complaining unless they had a problem. The Minister should be fair.

Michael McDowell (Dublin South East, Progressive Democrats)
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Child benefit has increased by 272% since 1997. It has risen in real terms from a minimum of €54 per child per month in 2000——

Breeda Moynihan-Cronin (Kerry South, Labour)
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I am not dreaming up these stories.

Michael McDowell (Dublin South East, Progressive Democrats)
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——when this programme started——

Breeda Moynihan-Cronin (Kerry South, Labour)
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My constituents are telling me about it.

Michael McDowell (Dublin South East, Progressive Democrats)
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——to over €141 per child per month this year. This payment, made every month for every child aged under 18 years who is still at school, affords considerable additional financial support to parents above what was available in 1997 and gives all parents options concerning the child care arrangements they consider suitable for their family.

It is only fair to emphasise that the EOCP has been central to the development of child care over the last five years. We all recognise that the child care sector has flourished over the past seven or eight years.

Breeda Moynihan-Cronin (Kerry South, Labour)
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Agreed.

Michael McDowell (Dublin South East, Progressive Democrats)
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It will continue to do so under the careful stewardship of this Government which has recognised, for the first time, the need to foster the sector and which has provided significant funding, both directly and indirectly, to support that growth. The range of supports available under the EOCP and in the broader range of Government actions to support the child care sector is a testament to its commitment — and a contrast to the performance of the previous Government — to support parents in meeting their child care and employment needs for the economic and social betterment of our country.

Breeda Moynihan-Cronin (Kerry South, Labour)
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I am not dreaming it up and neither are my constituents.