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

4. To ask the Minister for Children and Youth Affairs in view of the continuing pressures being voiced by the early childhood sector regarding threats to the financial sustainability of services the plans in place to address the current sustainability crisis faced by the sector; if his Department has brought the issue of charging early childhood services commercial rates to the attention of the National Valuation Office as an immediate threat to the sustainability of services; and if he will make a statement on the matter. [44219/14]

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

In view of the continuing pressures being articulated by the early childhood sector regarding threats to the financial sustainability of services, what plans does the Minister have in place to address this issue in the future? As for commercial rates being levied on the early childhood services sector, has the Minister had discussions with the relevant Minister on amending this practice in the future?

James Reilly (Dublin North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I am aware of and concerned by the sustainability issues for the early years services and have met many of the groups concerned. Annual funding in the region of €260 million is provided for the child care sector to support a number of child care programmes implemented by the Department. These programmes include the community child care subvention, CCS, programme, the early childhood care and education, ECCE, programme and a number of labour activation initiatives under the training and employment child care programmes. These programmes and, in particular, the early childhood care and education programme provide a guaranteed source of income for the participating services and given that many parents otherwise would not be able to avail of preschool care and education for their children, the funding has ensured many child care services, both commercial and community, have the resources to continue to operate.

I am aware of the rates issue and despite the budgetary position that prevailed in recent years, the Government has maintained the funding necessary to support the child care programmes and introduced new initiatives to meet changing circumstances, particularly with regard to the improved employment opportunities in the economy. As funding becomes available, I hope the capitation rates for all programmes can be increased to provide further support. This concerns the rate of pay. However, following concerns expressed by child care providers throughout the country, the issue of commercial rates on preschool services was raised with the previous Minister for the Environment, Community and Local Government and the concerns of child care providers about commercial rates were brought to the attention of officials in the Department of Public Expenditure and Reform. Officials from my Department recently met representatives of the Department of Public Expenditure and Reform in the context of the Valuation (Amendment) (No. 2) Bill 2012 that is going through the Houses of the Oireachtas and discussed the issue of commercial rates on preschool services. Moreover, I have spoken to the Minister and I am pleased to announce the Government recently has approved an amendment to the Bill to exempt not-for-profit child care providers from rates.

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

The simple fact is that the cost of child care is crippling young families. This week Members learned from the media what the Minister would not do, but they have yet to hear what he intends to do to address this phenomenon. At the same time, these exorbitant child care costs are being incurred and the future sustainability of the services is under threat. The Minister referred to a couple of schemes funded through his Department. Is he aware that there are more than 4,200 services operating in Ireland, of which only 30% operate on a community not-for-profit basis? Only 30% of these services can avail of the ECCE or the CCS scheme. The Minister referred to the ECCE scheme introduced by the previous Government, but it is for three hours a day, for 38 weeks in a year, which does not address the affordability of child care. The Minister must examine the various regulations and conditions set by the Department of Children and Youth Affairs that are making matters unbearable for service providers. Moreover, he must consider ensuring the capitation grants and funding provided by his Department are made available on time because that is not the case at present, which is adding further problems to the services.

James Reilly (Dublin North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

For the information of the Deputy, approximately 4,200 child care services, including community child care services, are participating in the ECCE scheme, that is, the free preschool year programme.

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

That is what I said.

James Reilly (Dublin North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The total annual funding provided to support the programme is approximately €175 million. I believe the Deputy indicated that only a small number of them were involved.

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

No, I referred to the CCS scheme.

James Reilly (Dublin North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The capitation payments provided under the programme are made in advance and early in each school term. This funding is a major support for child care providers, particularly at a time when, because of economic circumstances and the position on employment, the demand for child care places is reduced.

The Deputy contended that earlier in the week he learned what I was not going to do. He may have learned from the reply to a parliamentary question what officials are highlighting and recommending, as opposed to decisions I, as Minister, have made on the policies required to address what all Members know is a serious expense in the cost of child care which is akin to a second mortgage for most families. The Government is acutely aware of this and developing a strategy for the early years that will help it to address this issue. It will not be a single strand simply involving talk of a second free preschool year. Everybody realises those in primary school and early secondary school are in serious trouble with child care issues which the Government will address.

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

I am aware that there are 4,200 service providers under the ECCE scheme. I was talking about the community childcare subvention scheme. Is the Minister aware of the difference between the two schemes because only 30% of service providers can administer and operate the community childcare subvention? I welcome his commitment that the early years strategy will deal with the affordability of child care. When will Members have sight of the strategy because it has been promised for more than two years? As for the sustainability of the child care sector, can consideration also be given to commissioning a sustainability audit for the early childhood sector as part of the early years strategy? I note that in most counties the community not-for-profit sector is exempt from commercial rates and that what is being introduced in the valuation legislation merely will ensure consistency nationwide. However, as the Minister is aware, the private service providers also provide a service for the State and as some might argue they are providing a service the State should be providing, they also should be given special consideration in the rates they pay.

James Reilly (Dublin North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

If a provider can demonstrate it is operating on a not-for-profit basis, it will not be obliged to pay rates. However, if it is in the business of making a profit and money, it will pay rates, just like all other businesses. There are anomalies in other areas such as health board premises and private surgeries despite the fact that those operating from them are delivering the same service across the board.

There are issues for rateable valuations across the business sector. We are addressing the issue of those who provide not-for-profit services. That is appropriate and proper. Child care and child care costs are issues of great concern to the Government. From the child’s point of view, however, money spent in the first three years yields the best outcome for him or her. As Minister for Children and Youth Affairs, I am in charge of the Child and Family Agency which is answerable to the Department and I am very concerned about and aware that the well-being of the family has a significant influence on the well-being of the child. That is why I am so concerned about child care costs and I am discussing these issues with my Cabinet colleagues.