Terry Leyden (Fianna Fail) | Oireachtas source

I welcome Deputy Reilly, Minister for Children and Youth Affairs, to the House.

Fianna Fáil has put forward a range of fully costed measures that will lead to significant quality improvements and additional capacity in the child care sector and the inspection regime. Once these improvements in the sector are made, we are committed to expanding the ECCE scheme to a second free preschool year. However, these quality improvements will take at least two years to implement properly, as most interest groups have recognised, and as a result it is necessary in the interim period to introduce additional measures, such as our child care tax credit, which would ease the cost burden of child care on working families in the immediate term.

Fine Gael and the Labour Party have substantially under-invested in child care and early education, resulting in crippling child care costs for families. Failing to invest in early child care short-changes children, families and taxpayers, because the return on investment is greater than for almost all other economic development policies. Fianna Fáil's investment in child care will serve a multidimensional function in ensuring the well-being and development of children from an early age, as well as encouraging labour force participation of men and women and reducing the cost of child care for working families. It should be recognised that Fianna Fáil in government, in coalition with other parties, provided extremely good child care facilities throughout the country. Under former Ministers of State, Deputy Brendan Smith, former Deputy Barry Andrews and the late Deputy Brian Lenihan junior, there was tremendous development of community child care facilities in rural areas, towns and cities. It is something that should be recognised, but it has not been.

The free preschool year, which was implemented by a Fianna Fáil Government, has been very successful. Many families have availed of this facility. It is worthwhile. It is very much appreciated by families with young children. It provides a great start in life for young children. Of course, the ideal is the lovely opportunity for the child to be at home, particularly with one of his or her parents. It is a great start, but that is not always possible due to demands and commitments. The cost of child care is very high. Indeed, the cost of living has increased dramatically, and it is difficult for young families, single parents and others to maintain themselves and pay all the debts that are coming in. Unfortunately, with water charges and other charges that arise, these are increasing by the week and month. The ideal is not always the case. Many of us, probably including the Minister, were at home with our mothers and fathers, as I was, and had a great start in life. It is ideal, but not necessary or practical in this day and age.

In the European Union, child care costs on average approximately 12% of a family's income, while in Ireland it accounts for 35%. Preschool care for two children - on average €400 per week - is not manageable for many working families. The average annual cost of full-time child care for a two-child family is €16,500, according to national research. These costs have a disproportionate impact on working mothers, forcing many to manage their working hours to reduce their child care bills or opt out of labour market altogether. This has a knock-on effect on their pay and career progression and is reflected in the low labour market participation rates for mothers with preschool-aged children. Child care for those under three years in Ireland remains among the most expensive in Europe and the OECD, amounting to more than 50% of the net income of some families with two children.

While child care costs are high in most member states across the European Union, they are offset by similarly high child care benefits. However, this is not the case in Ireland, where most families with children under three years receive no financial assistance with child care costs, other than child benefit, which has been cut significantly in recent years. During the significant gap between the cessation of paid maternity leave at 26 weeks and the commencement of the free preschool year, which applies at three years and two months at the earliest, there is no tax incentive or cost relief available to help working parents meet child care costs.

Child care in Ireland encompasses a mixed model of provision, with services delivered through the family, the community, and the private and public sectors. There is a wide diversity of child care arrangements in Ireland. The predominant form of child care is care by the parents themselves, at 58%. For parents who engage in some form of child care, grandparents or close relatives are the predominant form of non-parental care, at 59%, with 25% being cared for by childminders and 25% using a crèche. However, non-parental child care is important for working parents, with 68% of couples with preschool children using such care where both work full-time. In the case of lone parents who work full-time, 60% use non-parental child care. The proportion of preschool children in formal centre-based child care is small by international comparison. This is especially true of the zero-to-three cohort, for whom the predominant form of care is by a relative or childminder outside a centre-based setting. However, informal child care, particularly by grandparents, who provide care for provide care for 49% of children aged four and under, also tends to be relied upon for the three-to-four age group, who have the highest rate of participation in centre-based child care due to the State-funded preschool ECCE year. Hence, even where there is direct public provision of child care, informal care is relied upon by parents who work full-time because suitable formal care is not available for enough hours or is too costly for the hours that parents work.

On early childhood education and care, or preschool, severe under-investment in early childhood has led to a lack of sustainability in preschool sector. Providers are stretched to the pin of their collars in terms of the resources they receive to operate the ECCE scheme, which has been cut significantly in recent years. During the past four years, preschools have experienced reduced capitation levels, an inspection system that is not fit for purpose, increasing administration and compliance responsibilities, and high commercial rates.

On Monday evening last, the Fianna Fáil Parliamentary Party was in the constituency of Carlow-Kilkenny, where we met a group of participants in preschools who have deep concerns. They are really under pressure. I appreciate that the Minister is under pressure financially. I hope he will get an opportunity, if he visits Kilkenny, to meet some of the parents and families, and particularly the carers, to assist them in their work. Their submission was extremely good. My party's spokesman, with myself, is Deputy Troy. He has put forward a good policy document, which the Minister should look at, but not steal from us at this stage because we need it for our manifesto to get back into Government on the next occasion.