Brendan Smith (Cavan-Monaghan, Fianna Fail)

The scheme has started from the point of the two most disadvantaged categories of parents, namely, those in receipt of social welfare payments and those in receipt of family income supplement payments. Parents in receipt of the former and availing of full day care services must pay the cost of the service as reduced by the subvention. Generally, this relates to those participating in back to work or community employment schemes, training or education, lone parents and young mothers completing secondary education. It is crucial that parents in receipt of social welfare payments can access affordable pre-school services for their children, for which reason the subvention scheme will be necessary. This latter category was excluded under the EOCP, as it was an employment support programme.

The scheme's other key target group is working parents on low income. As our starting point, we have identified the threshold for low income on the basis of eligibility for the family income supplement. The current net income threshold for this payment is €550 per week for a family with two children, which compares to a minimum wage income of €346 per 40 hour week and an average industrial wage income of €615 per week. An analysis of the data being received in the Department will enable us to consider changes to the income threshold.

Last week, some services stated that they have tiered fee structures in place where parents on social welfare payments are charged €6 per day. Where both parents are working, the charge is €8 per day. I do not accept that a difference of €10 per week between a family where both parents are working and a family where both are on social welfare payments represents a reasonable tiered fee system. Some 80% of child care services do not receive any subvention.

It is a misunderstanding that the community services are being asked to means test the parents using their services. The new scheme will use existing means tested criteria. In applying for funding, services will be asked to attach declaration forms completed by parents and containing a minimum amount of information, consisting of their PPS numbers, the number of children they have attending the service and whether they are in receipt of a social welfare entitlement or availing of various programmes or schemes. This will be a simple once per year exercise on the basis of which services will be advised of their funding levels for the following calendar year. Where the parent profile changes during a year and gives rise to an increased grant payment, the service can seek an adjustment at any time. In the majority of cases, the parent profile will not change significantly from year to year.

It is recognised that there may be particular issues for smaller scale services, but they will be considered when the data due to be returned this month is analysed. It is worth noting that the Data Protection Commissioner is satisfied with the proposed scheme and that parents will be invited to complete the declaration forms and provide their PPS numbers for the purposes of subventions under the scheme.

I hope the details I have outlined have addressed Senators' concerns. The community child care subvention scheme will provide an effective and equitable framework to continue supporting community child care services and targeting disadvantaged parents and their children. I am committed to completing the process of bringing the scheme into full effect in July 2008 following its final consideration by the Government on the basis of the comprehensive data analysis that I hope to complete in early 2008.

I am grateful for the opportunity to outline to the House some of the scheme's aspects. I would gladly return next week to respond to the particular issues raised by Senators. The Government is determined to build on the substantial progress made since 2000 in building a child care sector. To date we have invested some €530 million in the provision of new facilities and in assisting staffing costs. Another €575 million will be invested in the coming years. We are determined the child care subvention scheme will be effective, that those intended to benefit will do so and that the scheme will continue to assist in the provision of additional child care places in urban and rural Ireland.

Since last July, Department officials and I have been at pains to reiterate to each community group that we wanted the data for further analysis. One of the heartening revelations from that data is that the profile of the parents is changing because many people have had an opportunity to enter employment, which everyone in the Oireachtas welcomes. We are determined to ensure people on lower incomes will not be disadvantaged by the new scheme. We will ensure that when the scheme is finalised as a result of the analysis of our data, it will continue to build on the successful and substantial achievements under the equal opportunities child care programme. I would be glad to listen to the debate and deal with any issues that arise when we have the concluding debate next week.