Robert Troy (Longford-Westmeath, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

1. To ask the Minister for Children and Youth Affairs in view of the fact that she has has acknowledged that the review of childcare funding schemes will be used to address the cost of childcare, the changes she envisages making to the community childcare subvention scheme to increase the accessibility and affordability of childcare by low income working parents; and if she will make a statement on the matter. [14426/14]

Robert Troy (Longford-Westmeath, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

The Minister has acknowledged that there is an issue with the affordability of child care. She has also acknowledged that she is in the process of reviewing the community child care scheme, among other schemes administered by her Department. What changes does she envisage making to ensure that the community child care subvention scheme is fit for purpose and will support people on low incomes or who are unemployed in returning to the labour market?

Frances Fitzgerald (Dublin Mid West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Let me put the child care budget in context. Between 2008 and 2011, €384 million, or 60%, was removed from it. Between 2011 and 2014, I increased overall funding to the early years child care sector by €14 million. These are the financial and overall economic challenges that we face in dealing with the issue of affordable and accessible child care, which the Deputy rightly stated was a key issue.

My Department administers two targeted schemes that provide subvention for low-income parents to take up child care places, namely, the community child care subvention, CCS, and the child care education and training programme. As the Deputy is aware, two new elements were introduced in 2013 to support eligible parents in taking up employment opportunities and to provide child care for community employment, CE, scheme participants.

The CCS programme provides funding to community child care services to enable them to provide high-quality child care at reduced rates to low-income working parents. The programme is also accessible to parents who have relatively average incomes on the basis of their entitlement to hold general practitioner, GP, visit cards. As well as assisting families with the cost of such child care, the objective of the programme is to ensure that funding is focused where lifetime benefits are highest for families. We want to provide high-quality child care for children as well.

A number of issues have been identified with the schemes, including varying rates of subvention and different eligibilities, leading to inefficiencies and difficulties for those operating the schemes. I have decided to review the two programmes to consider how best to structure future child care support for working families and to incentivise labour market activation.

Additional information not given on the floor of the House

The participation of the wider child care sector in the review will be considered as the internal review progresses. It is not possible at this stage to determine when the review will be finalised.

Around €260 million annually is provided to support the child care programmes. This figure includes €175 million allocated for the free preschool year under the early childhood care and education programme. The total number of children benefiting from support under the programmes is in excess of 100,000. It should be noted that while a review of the schemes should support more effective targeting, I do not expect that this review on its own will result in increased capacity. Any overall increase in supports is likely to require additional investment. The difficult position in the public finances that this Government has had to contend with has worked against increased investment to date but, as they recover in the coming years, it will be important to channel any funding that becomes available to schemes that fulfil their objectives as effectively as possible.

Robert Troy (Longford-Westmeath, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

We are all as one in agreeing that high-quality child care is paramount. However, the Minister did not answer my question. She provided a history of what happened, but everyone is aware of that. The early child care supplement of €1,000 was abolished by the previous Government, but it was also replaced by the first universal free preschool year. The latter was a welcome development, as the Minister acknowledged.

Recent months have seen two reports: the Indecon report commissioned by the Donegal County Childcare Committee, DCCC, and an OECD report. Both highlighted how the cost of child care was preventing young families from returning to the workforce. At a committee meeting on 20 February, the Minister confirmed that a review of the schemes had started. What will she do about these schemes to support families that urgently need the State's help?

Frances Fitzgerald (Dublin Mid West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

It is important to understand that child care costs what it does because the subvention did not target child care places and a couple of hundred million euro has been removed from the sector. I am examining our two schemes to determine how they can operate more effectively. Even though we are providing support to more than 100,000 children, it is clear that a review of the schemes will give us more effective targeting. However, the review on its own will not increase capacity. Any overall increase in supports is likely to require additional investment. I have maintained the free preschool year and ensured an extra €5 million in supports for quality child care, targeting training and mentoring, a scheme on which I announced yesterday. I have continued to fund the preschool year and increased the number of community employment, CE, scheme places. Extra places will require additional investment. The review of the schemes should lead to greater targeting of those families that need child care the most.

Robert Troy (Longford-Westmeath, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I am slightly worried by the Minister's comments. She refers to greater efficiencies in the schemes, but she does not envisage major changes in how the Government treats child care. She mentioned targeted direct payments. Her Government has twice reduced targeted direct payments of child benefit. It decided to tax maternity benefit one week after the Minister launched a report recommending that maternity benefit be paid for 12 months.

When will the review be completed? Will there be wider consultation on it with the sector? Will the Minister examine a key recommendation of the Indecon report - that is, to offer tax relief to parents who avail of registered high-quality child care providers? In June 2012, when a colleague of mine asked the Minister for Finance about offering tax relief to working parents who were availing of child care, the Minister was unable to extrapolate the cost of child care.

However, that has been done now, and a fully costed report has been carried out with the Department. What consultation has the Department had with other Departments such as the Department of Social Protection and the Department of Finance?

Michael Kitt (Galway East, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I have to call the Minister now.

Robert Troy (Longford-Westmeath, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

When will the review be published?

Frances Fitzgerald (Dublin Mid West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The idea of the review is obviously to examine the two schemes available at the moment, but I have made it quite clear that developing more supports for child care will require additional investment. That is the reality. I am facing a situation in which 60% was taken from the child care budget and I am working to build up that budget again. That is what I have done. I have particularly focused on training, mentoring and quality supports, because what parents want is high-quality child care. It is very important we put that in place and build up the quality available in child care settings. The sector wants that and I want that. There will be consultation on the review. It has just started and it is being scoped out, and I will give the House further details on the progress of that review when I have them. It is important to review the schemes.

It is equally important to maintain the free preschool year and build towards a second year. The way to build towards a second year is by ensuring that the quality is there and that the staff are trained, and the legislation I recently brought to this House ensures that there will be higher standards and that people will have to do training. The learner fund I announced yesterday means that there will be higher levels of training in the sector, subsidised by the Government.

Robert Troy (Longford-Westmeath, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

They do not know the standards. They have yet to be published.

Frances Fitzgerald (Dublin Mid West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

People will not have to pay for their training. My whole agenda is to have high-quality affordable and accessible child care, but there is a considerable challenge in this country arising in respect of that, given the resources that are necessary and given the prior history of direct investment and direct payment to families.

Michael Kitt (Galway East, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

Thank you, Minister.

Frances Fitzgerald (Dublin Mid West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Looking at the OECD chart, one can see we are very high up in terms of direct payment. There is a history of under-investment and there has been a withdrawal of over €300 million from the sector between 2008 and 2011. I intend to rebuild the sector-----

Michael Kitt (Galway East, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I am sorry, but we have to move on to the next question.

Frances Fitzgerald (Dublin Mid West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

-----and that will result in more affordable and accessible child care being available to parents who need it.