Anne Rabbitte (Galway East, Fianna Fail)
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37. To ask the Minister for Children and Youth Affairs her views on whether an increase in capitation payments for early childhood care and education, ECCE, providers of 7% will be sufficient in view of the chronic issues regarding pay and the viability of the sector. [43771/17]

Anne Rabbitte (Galway East, Fianna Fail)
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511. To ask the Minister for Children and Youth Affairs her views on whether an increase in capitation payments for early childhood care and education, ECCE providers of 7% will be sufficient in view of the chronic issues regarding pay and the viability of the sector. [43782/17]

Anne Rabbitte (Galway East, Fianna Fail)
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I am asking the Minister for Children and Youth Affairs for her views on whether a 7% increase in capitation payments for the early childhood care and education, ECCE, scheme providers will be sufficient in view of the chronic matters regarding pay and the viability of the sector. I ask against the backdrop of child care providers being expected to complete an ever-increasing amount of paperwork in a continually changing sector. The 7% increase in the budget is welcome, but I ask if it will be sufficient.

Katherine Zappone (Dublin South West, Independent)
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I propose to answer Questions Nos. 37 and 511 together.

I am fully aware of the matters regarding pay for early years workers and have been an advocate for improved conditions for many years. That is why I increased the capitation rate for the first time since the ECCE programme was introduced in 2010. I have provided for a 7% increase from September next. The independent review of costs I have commissioned will provide critical information to guide decision-making on further investment in future budgets. I am pleased to report that my officials met personnel from Crowe Horwath again last week to advance this important work.

The new early years care and education measures announced in budget 2018 form part of continued growth in early years education investment by my Department. In budget 2017 I secured a 35% increase in child care funding, which followed from a similar increase in budget 2016. These increases reflect the emphasis we are placing on developing a quality service with appropriately supported staff. Having said this, I will repeat that it will take significant investment over many budgets to enable Ireland to catch up with its OECD counterparts and enable us to value our early years workforce fully.

As the Deputy will be aware, my Department is not the employer of child care workers. I have suggested to the sector that they could apply to the Labour Court for a sectoral employment order, asking the court to make a recommendation on pay for the whole early years sector. I should also remind Deputies that in addition to the 7% increase achieved in capitation payments, I have also provided €3.5 million towards "non-contact time" for all child care providers who register for the enhanced child care measures introduced last month. This, in addition to the €14.5 million paid to child care services so far in 2017, recognises the administration associated with the ECCE programme and other schemes. I am pleased to confirm that a full €18 million will be paid in programme support payments in 2018. I am committed to doing everything I can to help to address the pay and sustainability issues in the early years sector.

Anne Rabbitte (Galway East, Fianna Fail)
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I thank the Minister. The 7% increase which is well intentioned is very welcome and should be passed on to workers. It is a step in the right direction. I am concerned as there are many managers of crèches who, in some cases, may not have taken salaries for a number of weeks. They need to look after themselves. Is this one of the other ways to address the fact that community employment scheme workers were a crutch in the community sector? Is this a way to appease community sector crèches as it might afford them the opportunity to take on the additional staff members required? There has been a major burden on the community sector since last December, close to Christmas, when the changes came about. Is the 7% increase a step towards further announcements in the budgets ahead?

Katherine Zappone (Dublin South West, Independent)
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I thank the Deputy. The measures that I introduced in budget 2018 were very strategic and came after much reflection on how, having introduced many measures in budget 2017 which are now beginning to kick in for families, we could focus particularly on quality issues in 2018, as well as looking at ways in which our quality focus can continue to ensure that the cost for families can be more affordable. The increase in the capitation rate, for the first time ever, is clearly income that will go to child care providers. It is there for staff and for other costs, but as the Deputy well knows, the primary cost in the provision of child care is staffing. The Department have made a significant contribution, in the context of the concerns around pay. In addition, the extension by up to four months of the free pre-school for many children also increases the income of the provider. Those are two examples, not to mention the €18 million for programme support, of ways in which I am continuing to invest in the services in order to support the increased pay and conditions.

Anne Rabbitte (Galway East, Fianna Fail)
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I was trying to push the Minister on the issue of the community employment, CE worker and the community creches. Did the Minister see this as an opportunity for the community creches to take on the additional staff that they may have lost? I do not want to be disingenuous but I did the sums on it myself and if one was to break it down, the 7% would not bring their wages up to minimum wage. Does the Minister have plans going into the future as to how we can help and support the community sector after the loss of the CE worker? I still regularly hear about that loss and how expensive it is for creches to recruit staff. Not only is it hard to recruit, but it is expensive because they are continuously competing. Now they will be competing all the more because they may not be able to afford to take on the extra staff.

Katherine Zappone (Dublin South West, Independent)
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I hope that is a measure that would support the community sector in the provision of child care, particularly, as the Deputy has identified, in light of the concerns around community employment. In response to another question, I indicated that there will be an additional €700,000 available to the community sector to help with sustainability and viability issues. I am doing a considerable amount with the resources that I achieved in the budget. In the context of the wider budget and indeed the overall decisions that were being made I believe that I achieved a significant amount for the Department and for the providers. The focus was on quality. I want to say again that I am absolutely determined to support these measures. There was not much movement for sectoral employment orders. I wish there was, but in the absence of those, this is what I am doing.

Eugene Murphy (Roscommon-Galway, Fianna Fail)
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Question No. 38 is in the name of Deputy Ruth Coppinger. I have received her apologies; she is absent due to attendance at a committee meeting. Question No. 39 is from Deputy Mattie McGrath as láthair ag an am seo.

Anne Rabbitte (Galway East, Fianna Fail)
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He is at the same committee meeting.

Eugene Murphy (Roscommon-Galway, Fianna Fail)
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That is fair enough.