Charles Flanagan (Laois-Offaly, Fine Gael) | Oireachtas source

I thank the Acting Chairman and Senator Averil Power for their kind words.

I welcome the opportunity to respond to the issue raised by the Senator. Firstly, I would like to acknowledge the importance of the services delivered by Damdale Belcamp Integrated Childcare Service Limited to some 260 children across the areas of Darndale, Belcamp and Moatview. The centre was established in January 2001 and has evolved into the largest crèche nationally.

In 2013 the Darndale Belcamp Integrated Childcare Service incurred expenditure of €2.022 million and received funding amounting to €1.96 million. This resulted in a deficit of €62,000. I am aware that the centre has been experiencing cash flow difficulties recently and that this has given rise to concerns regarding its future operation. In order to assist the centre, the Child and Family Agency recently prepaid funding due in May and June and I want to acknowledge the support of the agency in this regard. I would expect that the agency will be open to providing some further pre-payments to the centre if this is of assistance in seeking to resolve underlying issues.

The Child and Family Agency is one of a number of State agencies which provides funding to support the provision of services at the centre. The level of support provided is very significant and is being provided at a time when all service providers are faced with particular challenges arising from the need to restore order to the public finances. The Child and Family Agency provided funding of almost €360,000 last year.

My Department is responsible for funding three child care schemes including the community child care subvention programme, the child care education and training support programme, both of which are administered by Pobal, and the early childhood care and education programme which is administered directly by my Department. Funding to the centre under these schemes amounted to over €550,000 in 2013. This represents total funding in excess of €900,000 from my Department's Vote. Funding is paid to the service in respect of actual attendance of children under the various programmes and funding is paid according to national capitation rates paid to all preschool services. The Department does not provide a grant to the service directly for salaries or administration in any way.

I have asked my officials to meet urgently - I acknowledge the use of the word "urgently" by Senator Power - with the Child and Family Agency and with Pobal, which administers a number of child care schemes on behalf of my Department, to explore all possible solutions to the current difficulties. My predecessor recently advised the centre that, in her view, the overall provision of early years services in the area might usefully be considered in seeking solutions to the current difficulties.

I agree with this view because we need to ensure that all available resources to support these key services are maximised. All services in receipt of State funding have had to generate efficiency savings. While I appreciate the challenges involved, it is important that all such avenues are fully explored.

I remarked that the centre incurred a deficit of €62,000. This would have been far more substantial but for successful fund-raising by and on behalf of the centre. I understand that fund-raising projections for this year are not as strong and there is a risk of a projected deficit of up to €200,000. I acknowledge the need to avoid such a deficit, but the centre's income projections show that income of €1.8 million continues to be available. With such a level of financial support available, it should be possible to work constructively to continue services and to avoid the closure scenario outlined by Senator Power. The funders will be available to support this process.

I am acutely aware that access to affordable high-quality child care can be a significant barrier preventing many low-income and disadvantaged families from availing of work opportunities. I acknowledge what Senator Power has said about the high level of disadvantage in the immediate area.

Significant investment totalling more than €260 million is being provided this year by my Department to support child care programmes. These include the free preschool year, from which approximately 68,000 children benefit on an annual basis. The Government is attaching significant priority to children and family services, including the provision of early years services. This is being done against the backdrop of significant and necessary constraints in overall public expenditure.

I hope the current difficulties at the Darndale Belcamp centre can be satisfactorily resolved. There is a requirement for all of the parties mentioned to work to resolve the current difficulties in a constructive and proportionate manner. As a first step, I have arranged for a meeting tomorrow of funding agencies, following which I expect there to be an early meeting with the centre to constructively explore all options for achieving a sustainable approach to the centre's operations. I call on all parties to work with this process and, as suggested by my predecessor, to use whatever space can be provided to identify constructive solutions which will continue to deliver a service to young children and their parents in the area.