Nicky McFadden (Fine Gael)

I am glad the Minister of State with responsibility for children is present to listen to this motion. I want to acknowledge his presence recently in Longford-Westmeath, where we did a tour of the very fine capital projects. In that context, the sum of money being spent on child care is to be commended.

I have tabled this motion on the Adjournment because of the confusion and insecurity surrounding the new scheme announced last July. The Minister of State undertook a review of the scheme and parents were required to detail very personal information concerning their incomes. These data were gathered by child care providers and forward to the Minister of State's office in November and December last year. The Minister of State identified in the review that a tiered fee scheme was not being applied universally.

However, I cannot see that the introduction of the band tiered system will ensure fairness. For instance, many parents in employment in receipt of a modest income and not in receipt of social welfare will be excluded from subvention as a result. They will be required to pay substantially higher weekly fees for the use of not-for-profit child care facilities. I know the new scheme will provide for additional funding for crèches and after-school projects in severely disadvantaged areas. However, I believe it is not healthy for children to be socially excluded and segregated from those who are financially better off.

The other issue affecting crèches and after-school care is the difficulty for small community groups attached to a national school or housing estate in a community centre in being obliged to form a limited company. This is next to near impossible. Are the members of school boards of management expected to become company directors, for example?

There is also the question of cost and the lack of wherewithal to produce audited accounts. As a former member of a community group, I can attest that quarterly accounts had to be presented to Pobal showing, for instance, how the money was spent, how many staff there were and the number of children benefiting from the various schemes. Pobal had to be satisfied that there was value for money. It is now 30 April and the transitional period between the equal opportunities child care programme and the community child care subvention scheme is over because it will be July in two months' time. I understand the impact of the new scheme is being monitored from January to July 2008.

Will the Minister of State state the result of the close monitoring? Community child care facilities throughout the country are waiting anxiously to know precisely what their budget will be for the coming year. Will the Minister of State say when the providers be notified of their allocation? It is very difficult and most unfair to expect efficient organised providers to plan ahead for staff, etc. for the coming year without knowing their budget.

I am also very concerned that under the new scheme the grant level will be reduced to 75% by 2010. This could mean a reduction of two staff members and a reduction in services. As it is, the people who work in this area providing a very valuable service are paid dismally — as little as €11 per hour. They must now endure the insecurity of not knowing whether their jobs still exist. Urgent clarification is needed before the community childcare subvention scheme is operated.