Denise Mitchell (Dublin Bay North, Sinn Fein)
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2. To ask the Minister for Children and Youth Affairs to outline her views on the Pobal early years sector profile report; her plans to tackle high fees in the childcare sector; her further plans to address low pay in the sector; and if she will make a statement on the matter. [52502/18]

Denise Mitchell (Dublin Bay North, Sinn Fein)
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What is the response of the Minister for Children and Youth Affairs to the Pobal early years sector profile report? What are the Minister's plans to tackle high fees in the childcare sector? What are her plans to address low pay in the sector? Will she make a statement on the matter?

Katherine Zappone (Dublin South West, Independent)
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I greatly welcome the recently published early years sector profile report. I commend Pobal on its work. Some 3,900 services participated in the survey, making its findings all the more credible.

The report shows that more children than ever are participating in State-funded childcare schemes, almost twice as many as three years ago. It also shows that fees for a full-time place have increased by approximately 2% per week compared to an increase of over 4% the previous year.

I was particularly encouraged by some significant inclusion measurements such as the reported 8% increase in the number of Traveller and Roma children participating in early learning and care and the fact that more than 3,000 children with disabilities benefitted from targeted measures under the access and inclusion model.

I recognise that childcare fees represent a significant burden for many families. To address affordability and quality, we have secured a 117% increase in funding over the past four budgets, which has doubled the number of children in receipt of various forms of subsidisation. I have repeatedly stated that much more needs to be done over successive budgets to meet our aims fully in this area.

I have been unequivocal in my support for better pay and conditions for childcare workers and the need for the sector to bring forward a sectoral employment order. I have also introduced practical steps to improve the conditions of staff. These have included an increase to ECCE capitation of 7% intended to improve pay rates in the sector. Furthermore, by the end of 2019, my Department will have paid more than €55 million to childcare providers in recognition of the administrative role they play in delivering the current childcare schemes. Finally, First 5, a whole-of-Government ten year strategy for babies young children and their families that I launched in recent weeks sets out important commitments to further address the cost of childcare and to improve working conditions for staff.

Denise Mitchell (Dublin Bay North, Sinn Fein)
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I thank the Minister for her response. The major thing that emerged from the Pobal report is that fees are too high and wages are too low despite the Minister's efforts. I accept that she has made some major efforts in this area. Despite that, the cost of childcare continues to rise. The average cost has increased by 2.2%. A situation seems to have arisen where subsidies chase fees, which is unsustainable. While the targeted subsidies are welcome, the majority of families are still paying the equivalent of a second mortgage and there are major problems retaining staff. Another concern of mine is that 98% of people working in this sector are women. The Minister has said that she is committed to a new radical funding model. Can she tell us what this model is because at the moment, we are just getting more of the same? Will this model address wages and high fees?

Katherine Zappone (Dublin South West, Independent)
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I appreciate the concerns raised by Deputy Mitchell, which I share. What the report demonstrates is that the fees have increased but only by 2% this year compared to 4% the previous year so that demonstrates that we are monitoring it and asking the providers to pay attention to it. Second, as the Deputy knows, because of the lack of investment for so many years, given that costs are going up, childcare providers are allowed some reasonable increase in fees and I think a 2% increase is reasonable. The other thing the Pobal sector profile demonstrated is that the average rate of pay has gone up - not significantly but it is going up so it is important to attend to that. What we do not yet know is how the significant increase in ECCE capitation that I brought for this year will, hopefully, be passed on to staff. We will record and monitor that and, hopefully, we will see their pay go up.

Denise Mitchell (Dublin Bay North, Sinn Fein)
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I know the Minister shares my concerns but I do not see any real action on this. Unfortunately, the new funding model seems to be just a sticking plaster. The Minister agrees that pay in the sector is far too low. We are losing skilled workers, the turnover is very high and we cannot continue with this. Has the Minister sat down with unions to look at pay in the sector or discuss any of their proposals? Has her Department explored any alternative models to address pay and conditions?

Katherine Zappone (Dublin South West, Independent)
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What I am saying is that in the context of the model we have, I have done some significant things in order to encourage improvements in pay and conditions for childcare professionals and I need the co-operation of employers and providers. It is not that nothing is happening; things are happening. However, as Deputy Mitchell points out, we can only do so much within the context of that model. I have been doing two other things. Deputy Mitchell asked whether I have sat down with the unions. Yes, I have and I have also sat down with a working group on which unions are also represented in terms of the wider employment forum set up by the Minister for Public Expenditure and Reform. In particular, we are looking at a sectoral employment order. We still do not have enough workers signed up with regard to the union to make that a possibility. I have been speaking with organisations representing the employers sector. They have not moved to the point where they can take part in that sectoral employment order but I have been encouraging and speaking to them. In regard to First 5, which I might get time to discuss in the context of another question, there is a description of the vision of the public funding model we want to move towards that brings us to a different type of model that I hope will do more to get us there than what we have done in the past.