Robert Troy (Longford-Westmeath, Fianna Fail)
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4. To ask the Minister for Children and Youth Affairs the reviews he has taken of the capacity and sustainability of the preschool and early education sector to provide for the extension of the early childhood care and education scheme; and if he will make a statement on the matter. [42684/15]

Robert Troy (Longford-Westmeath, Fianna Fail)
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Given that those working in the sector unanimously agreed the sector was not ready for the expansion of the early childhood care and education, ECCE, programme until capacity and sustainability had improved, could the Minister outline what reviews of the capacity and sustainability of the sector his Department carried out before introducing the extension of this scheme in the most recent budget?

James Reilly (Dublin North, Fine Gael)
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At present, the ECCE programme covers children who have reached the age of three years and two months by 1 September of the relevant year. From September 2016, I am expanding this programme to allow children enrol in free preschool from the time they are three years of age and to remain there until they start primary school. That is very important because parents in some instances have felt under pressure to send their children to school earlier than they would otherwise like because of financial considerations. This is a major change to the benefit of children and parents. This extended free preschool provision was first recommended by the expert advisory group on the early years strategy in 2013. It was also one of a series of recommendations of the recent interdepartmental group on future investment in child care, which I established in January last. The group consulted widely with a range of stakeholders, including the early years sector and parents, during the course of its work.

Under this extended programme, there will be three opportunities for eligible children to enrol during the preschool year: children who reach the age of three between April and August will have the opportunity to enrol in September; children who reach the age of three between September and December will have the opportunity to enrol in January; and children who reach the age of three between January and March will have the opportunity to enrol in April. As a result of this extension, the number of children benefitting from the programme is expected to rise from around 67,000 to 127,000 in a given programme year. For the 2016-17 programme year, it is estimated that 89,500 children will be eligible to enrol in the programme from September 2016, with another 22,000 from January 2017 and a further 15,500 from April 2017.

In order to provide the early years sector with the time to build capacity to meet this increased demand, a decision was taken to introduce this new measure from September 2016. As the increased demand for the programme is not expected to peak until January and April 2017, this timeframe should allow preschool providers to make any necessary infrastructural or service changes and to put in place extra staff resources to accommodate the additional demand.

I am satisfied that there is already additional capacity in the early years sector to cope with some of the increased demand. Indeed, the Annual Survey of Early Years Services, which was conducted in December 2014, estimates that there are more than 24,000 vacancies in early years services across the country, with almost 13,000 of these vacancies in sessional services.

Robert Troy (Longford-Westmeath, Fianna Fail)
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Can the Minister clarify exactly how many spaces are available at present? In a reply to a parliamentary question I asked a few months ago, he said approximately 10,000 spaces were available. Assuming that, as Pobal found in a survey it carried out, approximately 6,245 of those places are available in rural areas, with 3,245 available in urban areas, and given that the expansion of the community child care subvention scheme, which will create 13,000 places, was announced in this budget, how are we going to have the capacity in the sector? In an answer to a previous question, the Minister talked about commencing a mapping process now. Surely that should have been done before the extension to the scheme was announced. Does the Minister know where there is capacity in the services throughout the country at the moment? I do not think he does.

He talks about phasing it in over a period, with an extra 22,000 in September 2016 and a further 22,000 in January 2017 but what is going to be there to help services build the capacity? Is the Minister going to introduce a capital grant scheme so they can build on additional space if required? We have already extended the timeframe to enable people to upgrade their qualifications to September 2016 because we do not have the required number at present. While everyone will concur that a second free preschool year is needed and welcome, I have grave reservations that this was announced as part of an election ploy without due consideration for the capacity of the sector to develop.

James Reilly (Dublin North, Fine Gael)
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I am aware that every year a significant number of new preschool providers apply to participate in this programme. This increased demand for, and additional investment in, free preschool provision should encourage a greater numbers of applicants. I am clear that more capacity will be required; we are all agreed on that. Officials in my Department have identified a number of challenges that preschool providers who wish to expand may face, including issues of sustainability. They are working closely with the city and county child care committees and the voluntary child care organisations to identify measures to address such challenges.

The restoration of capitation rates to pre-2012 levels from September 2016 which I recently announced is one such measure. The increase which will bring capitation rates to as much as €2,850 per year for each eligible child is a guaranteed source of income and a major support for preschool providers. This was particularly evident in the difficult economic climate that prevailed in recent years when many parents would not have been in a position to avail of preschool services for their children. Additional capitation payments for preschool providers recently announced as part of the suite of Government-funded supports for children with a disability in accessing the ECCE programme will not only ensure children with a disability can meaningfully participate in and reap the benefits of free preschool education but will also assist in addressing issues of sustainability for preschool providers. Budget 2016 also includes further measures to address this issue, including investment in training and education, as well as capital funding. I will announce further details of these measures shortly.

Robert Troy (Longford-Westmeath, Fianna Fail)
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The Minister has not confirmed whether 10,000 or 20,000 spaces are available. Perhaps he might do so. Even if the number is 20,000 which would be at the higher end of his expectations, he is talking about an additional 22,500 spaces in the free preschool year in 2016 and a further 13,000 under the community child care subvention scheme. That gives a total of 35,500 which represents a requirement for 15,000 more spaces than those available. What review of capacity and the sustainability of the sector did the Minister undertake prior to the announcement? He talks about being aware of capacity issues, but what was done prior to the announcement in order that we would know where exactly the gaps were and in what geographical areas there were gaps?

The Minister has referred to restoring capitation rates to pre-2012 levels. The Government reduced the rates a number of years ago, but the level of restoration is still not adequate. Is the Minister aware of the huge financial pressures on communities and small private operators? He is restoring capitation rates, but under the contract with the State, the provider is meant to pay staff costs for 42 weeks of the year, yet the State is only paying for 38 weeks.

Michael Kitt (Galway East, Fianna Fail)
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I have to call the Minister to reply.

Robert Troy (Longford-Westmeath, Fianna Fail)
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Restoring capitation rates is not good enough. The previous Government invested €500 million in the previous decade to ensure there would be sufficient spaces available in the sector. Will the Minister introduce capital funding to ensure we will have sufficient capacity in the sector? It is a welcome announcement, but I do not think it has been well thought out. Parents will face the real issue in September 2016 long after the general election.

Michael Kitt (Galway East, Fianna Fail)
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This is Question Time and I want to try to keep to the time limits. The Minister and all other Members should, please, watch the clock.

James Reilly (Dublin North, Fine Gael)
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I will respond to the Deputy because his assertions are outrageous. We put an expert interdepartmental group together across virtually all Departments. We had consultations with people involved in the sector, as well as with parents. We now have an extremely well thought out and considered plan for future investment in child care. It will provide parents with affordable and accessible child care services, as well as quality care for children. As money becomes available and the economy recovers from the fiasco Fianna Fáil left behind, we will continue to invest in this sector. We will do so prudently as money becomes available and in a very clear fashion.

Robert Troy (Longford-Westmeath, Fianna Fail)
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Will the Minister confirm how many spaces are available?

James Reilly (Dublin North, Fine Gael)
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Nobody interrupted the Deputy. As the truth sometimes hurts, he should just listen to the facts.

Robert Troy (Longford-Westmeath, Fianna Fail)
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Some 35,000 spaces will be needed in September 2016.

Michael Kitt (Galway East, Fianna Fail)
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Please, Deputy.

Robert Troy (Longford-Westmeath, Fianna Fail)
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The Minister is not answering the question.

James Reilly (Dublin North, Fine Gael)
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I have made it very clear from where the information comes. The results of a capacity study came through in December 2014 and the Deputy knows what they are. As I have told him, there are 24,000 vacancies in early years services across the country, of which almost 13,000 are in sectional services. The Deputy also alluded to a mapping process.

Robert Troy (Longford-Westmeath, Fianna Fail)
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The spaces will be needed next September.

Michael Kitt (Galway East, Fianna Fail)
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May we have order, please?

James Reilly (Dublin North, Fine Gael)
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It is very hard to talk if the Deputy continues to interrupt. If he does not want to hear the information, that is fine. He can simply ask the question in order that he can get his name in the local newspaper, the Longford Leaderor whatever it is.

Robert Troy (Longford-Westmeath, Fianna Fail)
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The Minister is fond of going to the newspapers.

James Reilly (Dublin North, Fine Gael)
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The bottom line is that there is additional capacity available. Even the Deputy would acknowledge that this is dynamic. Where the opportunity presents, people are happy to become involved in this business. There are new people joining all the time. In fact, one of the sector's major concerns was that there would be no displacement of existing services. At one point it was suggested we close off applications to join the new service, but clearly we are not going to do that. We have competition law which will dictate the issue.

Michael Kitt (Galway East, Fianna Fail)
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I am sorry, but we have to move on to the next question.

James Reilly (Dublin North, Fine Gael)
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We also have planning laws. We will support the sector in this regard. In the area of special needs we brought forward a seven-point plan in conjunction with the Department of Health and the Department of Education and Skills. There will be an inclusion co-ordinator in each service and every child attending a preschool facility will receive an extra €2 per week in capitation, whether he or she has special needs or whether there is a special needs co-ordinator in the preschool setting. The idea is to encourage inclusion and enable people to feel confident and competent to include children with special needs and-or disabilities.