Michael McCarthy (Labour)

This important debate has been given added impetus as a result of the forthcoming by-elections in Meath and Kildare North. Child care is one of the main issues debated on the doorsteps with politicians of all hues.

A number of comparisons have been made between the situation now and in 1997. This comparison does not compare like with like. Much has happened in the past eight years, not least that in budgetary terms we have a budgetary surplus of billions now whereas in 1997 it was just £15 million. The revenue and opportunity exist now to do something constructive and proactive in terms of child care.

In recent years we also had a largely unused resource in our economy, namely, the number of skilled and professional women not actively participating in the economy. Now these women are part of our economy and in no small way have led the drive and dynamic in this context. It is a major issue when the data available to us to make informed decisions are considered. RecruitIreland conducted a survey recently, which revealed one third of all parents expend between €600 and €900 a month on child care. That is a frightening figure, which is similar to the amount paid by young couples on mortgage repayments every month. The average price of a three bed semi-detached house is €320,000 and mortgage repayments for people who buy these houses is equal to child care payment. That demonstrates the extent of the child care problem. Irish women have more children than their European counterparts. However, child care facilities in Ireland lag well behind European countries. The Government has a poor record on the provision of child care places and the cost of available places is a significant issue.

The National and Economic Social Council's draft report asserts that the average cost of sending a child to a crèche represents 20% of earnings, which demonstrates the difficulty faced by people meeting the cost of child care. Little has been done by in recent times. While I will not pre-empt the results of the upcoming by-elections, hopefully, an extrapolation of the results will lead the Government to seriously examine the issue and do something meaningful and proactive.

My party has done a great deal of research in this area, particularly through my colleague, Senator O'Meara, who ensured the issue is debated. Improvements should be made in a number of areas. For example, parental leave should be addressed because it is currently a token gesture. It should be meaningful and realistic and a system should be developed to afford both parents a period not exceeding 12 months to spend with their child during a constructive and important phase in their lives. Many developments to support employees have emanated from directives issued by Brussels. While that is not necessarily bad, we should be proactive in pursuing a strategy to benefit working parents rather than reacting to such directives. We are well aware of what child care facilities are not provided but the State must pursue a system that can provide child care at a reasonable cost. Senator Minihan proposed the use of schools when classes have been completed. The Labour Party supports the introduction of a tax refund so that families whose incomes are low can receive direct payments in lieu of a tax credit.

A number of issues need to be examined. While I welcome the debate, I hope action will be taken because recent analysis and opinion polls highlight that child care is the main issue exercising the minds of many people. It is not fair to compare 2005 with 1997 because economic activity, budget surpluses and child care demand are completely different. I hope the Government will take a proactive and positive lead on this issue as a result of the debate.