Fintan Warfield (Sinn Fein) | Oireachtas source

I commend some of the previous speakers, including Senator McGreehan for speaking personally. I welcome the Minister to the House. He has been at four or five events today and probably more besides. We appreciate his coming to the Seanad and always giving time to hear our contributions.

For years, childcare and the early years sector have been underfunded. This State last year was ranked one of the lowest EU member states for investment in this area. The resulting burden on families raising children is immense. Household finances are under stress and childcare fees for parents are among the highest in the European Union. A report by the Irish Congress of Trade Unions, titled The Social Wage, just published, states that the average couple spends 20% of their joint disposable income on full-time fees for two preschool children and that this is a bigger share of the family budget than is typically spent on housing costs.

The issues in childcare amount to a significant barrier to employment for women. The high costs force many parents, especially women, to leave work to care for children at home. All European welfare systems were built on the assumption of women as carers in the home. From the 1950s onwards, that began to change but gender stereotypes are still part of policies here. Ireland has one of the lowest rates of working mothers in the EU 27 alongside Italy, Greece and Spain, with one third of women with children outside the workforce. At the same time, as has been mentioned, the 30,000 people in the early years sector are some of the most highly qualified professionals in our economy but are paid some of the lowest wages of any sector. Many earn the minimum wage, which is an insult to any worker. What does it say to primarily women carers that we pay our childcare and early year educators some of the lowest wages of any sector? Entry-level wages must increase to the living wage. The public sector should become a living wage employer. The benefits have been outlined. Doing this, particularly in childcare, would show we value childcare and the people who work in it and make it an increasingly viable long-term career choice. UNICEF has recommended that public spending and investment in the early years sector be at least 1% of GDP. If we move to get that investment, we can ensure we have a maximum weekly childcare fee and gradually reduce it until childcare is free at the point of use.

The Minister has given substantial time to the Pobal sector profile, published last week. It shows that early years educators earn €12.10 per hour on average and many earn the minimum wage of €10.50 or just above. Managers earn around €16.35 per hour, while many earn less than that. That is bad for workers and providers. It means qualified professionals are struggling to make ends meet and do not see a future for themselves in the sector. Low pay also means providers struggle to recruit and retain staff, undermining the sustainability of services and causing some to close. I acknowledge the core funding of €138 million to improve pay and the €38 million for graduate uplift. These are welcome investments and it is essential they are implemented this year.

I have three questions. What does core funding mean for preschool services? If providers are unsustainable, what measures will the Minister put in place to support them? For those who do not sign up to core funding, what does it mean for those services, parents and staff?