Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Question 5: To ask the Minister for Children and Youth Affairs if she has prepared an impact assessment of budgetary cutbacks on the establishment of the proposed Child and Family Support Agency; and if she will make a statement on the matter. [40761/11]

Frances Fitzgerald (Dublin Mid West, Fine Gael)
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The Government has completed and published the results of a detailed comprehensive review of expenditure. This review examined all areas of Government expenditure in order to meet the Government's overall fiscal consolidation objectives and realign spending with the priorities set out in the programme for Government. Central to the review process has been the need to consider new ways of achieving Government objectives in the context of public sector reform.

My Department participated fully in this review process, which involved detailed analysis of all areas of relevant expenditure, identification of additional costs associated with programme for Government commitments and other spending pressures and the formulation of options for savings. Detailed interactions took place with relevant agencies, including the HSE and the Department of Public Expenditure and Reform.

My Department's input to the comprehensive review of expenditure process was fully aligned with the Government's reform objectives for children's services and encompassed the child protection and welfare services currently operated by the HSE which are going to transfer to the new agency. In addition, the Government's public service reform announcements on 17 November signalled my decision to merge the Family Support Agency into the child and family support agency following the latter's establishment. This is consistent with the approach taken by my Department in the process of considering more effective ways to use resources to achieve the Government's key objective to improve services for children and families.

Last week, I announced a dedicated new budget subhead which was established for the first time in the HSEVote in preparation for the planned establishment of the child and family support agency. Provision of €568 million has been made for 2012. Traditionally the budget for children has been underestimated. It is important that we do due diligence to ensure the money earmarked for child and family support services are covered by the new subhead. A process is currently underway in conjunction with the HSE to review and refine the detailed components of this subhead.

Additional information not given on the floor of the House

The provision for the first time of a dedicated budget for children and families within the HSE Vote will pave the way for the establishment of the new Agency in 2013. This dedicated budget will be managed by the national director of children and family services and his staff in support of the process of operational improvement in child protection and welfare services which he is leading. Central to this reform is the delivery of transparent and accountable management and budgeting.

The Government's reform of child welfare and protection services is also being assisted by the task force on the child and family support agency which I established in September. The task force, which has considerable expertise, met for the eighth time earlier this week and also has a number of sub-groups undertaking particular aspects of its work. The task force is chaired by Ms Maureen Lynott and it also includes the national director of children and family services, Mr. Gordon Jeyes, and the Secretary General of my Department.

I am satisfied that the recent budgetary decisions, while taking place in a context of huge pressure on the public finances, have been fully informed by the Government's commitment to the establishment of the child and family support agency. The establishment of the new agency is part of a wider change agenda aimed at strengthening the organisational capacity, business processes and systems necessary to deliver safe and reliable child protection services. This change agenda is necessary in order utilise resources to their fullest to promote better outcomes for children and achieve Government objectives for the improvement of the child protection system. I believe, in time, this will constitute an important and demonstrable example for the public of the benefits of public service reform.

Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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I agree with the Minister that the inclusion of the new sub-head is a positive development. She spoke about her full participation in the review process. Did she have an opportunity to discuss the impact of cuts directly with the Ministers for Finance and Public Expenditure and Reform? Was an analysis conducted into the curtailments that may result?

In regard to the 2% cut in the areas of mental health, disability and children's services, a footnote to the document presented by the Minister for Public Expenditure and Reform projected the so-called savings of €50 million. I have tabled a parliamentary question on this issue and I understand that the Minister, Deputy Fitzgerald, may not be in a position to address the matter today. What impact will this cut have on children's services and her Department? The projected savings are not broken down according to the categories.

Frances Fitzgerald (Dublin Mid West, Fine Gael)
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Every Department faced a difficult budgetary outlook. No Department was exempt. What I and my Department had to do was to examine the various spending areas. The saving to which the Deputy referred is across a range of areas and is part of the reform programme, including various budgetary controls that have been established. It relates to a number of areas, which I can correspond with the Deputy on.

I had to be clear about the areas I wanted to protect. For example, there was a requirement for an extra €12 million in the area of early childhood care and education alone in order to meet the increased number of three and four year olds participating. I was pleased that I was able to protect that service. For other services, I will have to examine the possibility of reforming how they are delivered. I have already mentioned the budget for the youth sector; I am introducing reforms in this area which I believe will create efficiencies among organisations. In addition, I will be asking a range of organisations to examine how they spend their money, to carry out due diligence on their spending and to consider how they can deliver services in a more efficient way, including by working together and perhaps sharing services. We have seen that this is beginning to happen in other areas; for example, in the early childhood area, two major organisations have come together and are working effectively as a unit. We will certainly see more of that.

To answer the Deputy's question, I took a careful approach to the budget decisions. I wanted to ensure that priority areas were protected within the budgets over which I had control, and I believe we have achieved that. I would prefer not to have to make any of these decisions but, unfortunately, the national financial and economic situation demands it.

Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Could the Minister give us an update on the establishment of the child and family support agency, including a timeframe? When does she expect to see the agency in situ? I know from cases presenting at my office - I am sure other Deputies have had the same experience - that the budgetary cutbacks will have negative effects, particularly on families, which will result as it sadly often does in friction, disruption and the break-up of families in many cases. Often, the result of this is young adolescent displacement, which can result in more homelessness and an increase in the number of young people seeking State care services. If the Minister does not have the exact figures, could she give us an indication of the number of children who were placed in care because their families were experiencing financial difficulties? We have talked about this before. It is a particular situation as against other issues that contribute to children needing State care. I am asking about children seeking State care as a direct consequence of their families' financial difficulties. That is, more and more, the reality we are in, and such children will present in ever-increasing numbers in the future.

Frances Fitzgerald (Dublin Mid West, Fine Gael)
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To answer the Deputy's question about the establishment of the new agency, January 2013 is the indicative date at this stage, assuming we are in a position, during the course of 2012, to disaggregate from the HSE and pass the legislation to establish the new agency.

With regard to children coming into the care system due to financial pressures on their families, it is hard to separate out one factor such as that. The main reason children are coming into care, from the information available to me, is neglect. Very high numbers of young children are coming into State care because of such situations. My information is that alcohol and drug abuse are behind many of these cases, and these are among the key factors that lead to young people coming into care. It is difficult to disaggregate precisely the impact of the financial pressures on families as a specific reason for children coming into care, but undoubtedly, financial difficulties place extra stress on families. We have a range of family support services and it is the intention, and the practice, to ensure by any means we can that children stay out of care. That must be the priority in our approach.