Dáil debates

Thursday, 27 March 2014

Other Questions

Child Care Services Funding

10:30 am

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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10. To ask the Minister for Children and Youth Affairs the total funding available in 2014 for assistance with child care; the means test that applies for this assistance; and if she will make a statement on the matter. [14018/14]

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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My question relates to support for child care. I heard the earlier debate on the issue and am interested in the trends in funding and the plans the Minister has to ensure that adequate funding is available for child care.

Photo of Frances FitzgeraldFrances Fitzgerald (Dublin Mid West, Fine Gael)
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Significant investment is being provided this year by my Department for the two child care schemes that are currently operating, namely the community child care scheme and the childhood education and training support, CETS, scheme. My Department also administers the free preschool year scheme. The annual investment in the latter scheme provides a financial benefit to the parents of participating children of approximately €2,500 to €3,000. Obviously the scheme is part-time, but it is of major benefit to both parents and children, particularly in the context of the high-quality inputs available and the levels of supervision and support provided by the scheme.

The community child care subvention programme benefits approximately 25,000 children annually. It is available to parents who have relatively average incomes on the basis of their entitlement to hold a GP visit card. The level of support is determined by the income status or social welfare entitlement of the parent qualifying for support, and parents who qualify for the highest rate of support can have the weekly charge reduced by up to €95 for each child, which is significant.

The CETS programme targets funding to support parents returning to education and training and benefits approximately 2,500 children. The scheme is worth approximately €145 per week for each child. In addition, a maximum of 1,800 new part-time child care places are being introduced this year under the CETS programme to Community Employment scheme participants. Finally, a maximum of 600 places are available under the school age child care programme. A significant range of supports are in place already, but clearly, fully addressing the broader issue of the affordability and accessibility of child care would require significant extra investment as we strive to make more places available at an affordable rate.

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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There has been a lot of discussion and kite flying by the Minister's colleagues about tax breaks that might be available in the future. Would the Minister agree that if money is available for tax breaks, it should be made available to those who are working and who do not benefit from the subventions referred to by the Minister, in the main? Tax breaks should be introduced in a targeted way to facilitate working parents of young children rather than just being introduced in a scattergun fashion. Will the Minister be making the case to her colleagues that tax breaks, when they are introduced, should be targeted particularly to facilitate working parents who need child care and who find that a huge proportion of their after-tax income is spent on funding the cost of going to work? This issue must be addressed, and if money is available for tax breaks in the future it must be spent in a targeted way rather than in the way that has been suggested, that is, giving a little to everybody with no policy basis.

10:40 am

Photo of Frances FitzgeraldFrances Fitzgerald (Dublin Mid West, Fine Gael)
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I will certainly be bringing forward a case for the incremental development of affordable and accessible child care services. I agree with the Deputy that this is a key economic and competitiveness issue. As the OECD report stated when it examined this area, it is essential that it be addressed for the future economic development of the country. I approach it from the point of view of what is best for the child and want to ensure services are of high quality. While we welcome the 1,200 new jobs created every week, as they become available and couples take them up, the question of accessible child care is going to become more critical. I agree with the Deputy that this is a key issue for the Government when considering future tax policy and general investment. International research on developments in child care points to universal provision as the most effective way forward.

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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Will the Minister accept that the chances of her persuading her colleagues in the Department of Public Expenditure and Reform to take that route which might be the more preferable one are difficult? While there are cutbacks, if money is saved, it will not be used to provide for extra expenditure but tax breaks. Accepting that tax breaks represent the only loose money in the system, is the Minister going to make a strong case that tax breaks between now and 2016 should be targeted at reducing the cost of child care for people who are working so as to make it worth their while to work and pay for good quality and registered care providers? Obviously, such a move would also encourage people to use quality registered child care providers.

Photo of Frances FitzgeraldFrances Fitzgerald (Dublin Mid West, Fine Gael)
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This country will have to deal with the issue of the accessibility and affordability of child care in the coming years. The precise mechanism and financial support to be provided will have to be examined. Research shows the provision of universal child care services, as opposed to using the tax system, is preferable if funding is available. However, there will be detailed budgetary discussions in the coming months on this and a range of other issues. I am not in a position to indicate the precise outcome of these discussions.

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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I was referring more to the Minister’s input into the process.