Frank Fahey (Galway West, Fianna Fail)
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I welcome the opportunity to make a statement to Seanad Éireann regarding the implementation of the equal opportunities child care programme.

The programme for Government and the progress of the equal opportunities child care programme are confirmation of the Government's commitment to developing child care services and to keeping child care at the forefront of its social agenda. The Department of Justice, Equality and Law Reform has responsibility for the development of child care to meet the needs of working parents and those in education and training preparatory to labour market participation through the implementation of the equal opportunities child care programme or EOCP, the current phase of which covers the period from 2000 to 2006.

The EOCP has both an equal opportunities and a social inclusion perspective and aims, inter alia, to increase the supply of centre-based child care places by 55% by the end of the programme. The broad objectives of the equal opportunities child care programme are to improve the quality of child care and to maintain and increase the number of child care facilities and places and to introduce a co-ordinated approach to the delivery of child care services.

The EOCP is structured into two measures of the regional operational programmes with significant European Regional Development Fund, ERDF, European Social Fund, ESF, and Exchequer supports available. The programme makes capital grant assistance available to community-based, not-for-profit child care groups and to private child care providers to facilitate the creation of new and enhanced child care places. Community-based not-for-profit groups which provide services for very disadvantaged families can also receive grant assistance towards their staffing costs to enable them to support parents who would not be able to afford the full cost of child care.

The key criteria against which project proposals are appraised for funding to provide new and enhanced services and to support the staffing costs of services in disadvantaged areas include the socio-economic and demographic profile of the area, the quality of the proposal, the capacity of the group to implement the project, the level of integration and co-ordination and the costings and value for money. In Ireland in the 1980s and 1990s, as more mothers tended to return to the workforce, the child care needs of parents continued to be most frequently met by family or neighbours. The potential of the female labour force as an impetus for future economic growth, together with the economic needs of many couples, continues to contribute to an increase in female participation in the labour force. EU equality legislation endorsed the need for expanded opportunities for women.

The overall result of these changes was an increased awareness of the need for expanded child care services to support the participation of both parents in the labour market. The first meeting of the expert working group on child care established under Partnership 2000 was held within a month of the Government changeover in 1989 and all the evidence shows that child care has been high on the agenda of the Government since that time. It has consistently moved promptly and purposefully to facilitate the development of a top quality child care service across the country. The achievements in respect of child care are a testament to that commitment and have helped in no small way to support the child care needs of parents in employment, education and training and assisted many of them to break the cycle of disadvantage.

The recommendations of the working group were published in 1999. The Government proceeded to implement these through the National Development Plan 2000-06. The working group made recommendations in respect of both the supply and demand side of child care. On the demand side, the Government has, to date, favoured the use of child benefit to assist parents with the costs of parenting, including those relating to child care, because it is income-neutral and affords parents choices regarding the arrangements they choose to make in respect of the care of their children. It has increased the monthly child benefit payment since 1997 by a significant 272%. The annual cost of child benefit is now over €1.9 billion.

Our focus in this debate is on the EOCP, which largely addresses supply issues. The supply side of child care was supported through a major investment in the national development plan. The action is being supplemented by capital tax incentives, provided by Government, which have also led to the development of large-scale crèches and have further increased the availability of child care. The Department of Finance has also made funding available to expand the provision of crèches for civil servants. Since it was launched in 2000, the total funding package for the 2000-06 phase of the equal opportunities child care programme has increased from €317 million to €499.3 million, or by 57%. The most recent increase was that of €50 million announced in the budget. These increases took place for a number of reasons and are worth acknowledging.

In the first instance, the programme budget increased from €317 million to €436 million, with an increase in provision made at the time of the social partnership agreement on the anti-inflationary package. Actual funding for child care increased in recognition of the need to further develop the child care sector, while responsibility for the development of child care for school-going children also transferred to the Department of Justice, Equality and Law Reform. As part of the EU-supported national development plan, the EOCP was reviewed at mid-term stage and was deemed to be very successful in working towards its end targets. The Government considered it appropriate to increase the funding package by a further €13 million, including the provision of some additional EU funding from the performance reserve.

Such has been the dynamic for the development of child care which has grown at local level since the start of the EOCP that there was something of a funding crisis in terms of capital development last year. The Government has responded positively to the arguments put forward at Cabinet by the Minister, Deputy McDowell, and his officials and, as a result, the budget provided a Government commitment to the injection of a further €50 million in capital funding under the current programme and a further €40 million in additional capital funding in the next phase of the EOCP to the end of 2009. The latter decision facilitated the largest ever single announcement by the Minister of capital funding grants, totalling some €35 million, for child care in December 2004, almost as soon as the budget provision had been revealed. While some groups were naturally somewhat disappointed that they were not included in that announcement, I give them every assurance that the Minister and the Department, together with our partners in ADM who appraise all applications, are working to approve, as soon as possible, all capital projects which clearly address local child care service gaps and represent good value for money.

I understand the Minister hopes to be in a position to announce a further large-scale capital allocation at Easter, if not before, and that he also hopes to make further announcements of capital funding in a planned manner later this year and thereafter. In light of the large amounts of public funding involved, there is an onus on the Department to manage the flows of capital funding broadly in line with its annual funding provision which can sometimes cause necessary delays in making grant applications.

Total funding already committed under the EOCP to date will, when fully drawn down, create 33,254 new child care places throughout every county in Ireland. Of these, 20,500 were already in place by June 2004. This represented an increase of 36% in the supply of child care places in four short years. The funding remaining to be allocated will further increase the supply of quality child care places throughout the country. Every county has already benefited from the creation of additional child care facilities under the EOCP. All groups which benefited from the programme are encouraged to provide services to the maximum allowed in respect of their particular services under the child care regulations and to remain open for at least 46 weeks per year to facilitate parents in employment. These new places offer parents greater access to child care as they meet their work and family needs. The EOCP also contributes towards the staffing costs of child care services which support parents who are at a disadvantage to enable those services to offer differential fee scales to benefit less advantaged families.

We are aware that the number of women participating in the labour market has grown significantly from 483,000 in 1995 to 771,000 in 2004. The need, therefore, for child care has increased enormously during the period. It is estimated that as many as 220,000 children require child care while their parents are in employment or education or training in preparation for labour market participation. The Government's policy is to offer parents choices in respect of child care. The survey of child care undertaken by the Central Statistics Office in 2003 shows that involvement of the extended family and child minders to provide child care support remains the preferred choice for child care in many families. While much of the focus of the EOCP is on centre-based child care, the Government recognises that many parents prefer to use child minders and it has put in place an initiative under the programme to enhance quality awareness among child minders. The latter is being delivered by the city and county child care committees.

As a result of the relatively high adult carer to child ratios that are essential to ensure the delivery of a safe, quality child care service, the cost of delivering child care is necessarily high. It is in this context that the EOCP helps new community-based facilities with their staffing costs in the early days as they move towards sustainability. Similarly, it is likely that a number of community-based services located in areas of significant disadvantage will require ongoing contributions towards their staffing costs. However, given the importance of labour market participation in breaking the cycle of disadvantage, the advantages to society in the long term of these supports will outweigh their cost in the short term. We are currently reviewing the arrangements for the continuation of staffing grant assistance to community groups that provide services for particularly disadvantaged parents. Again, the range of issues to be addressed is quite wide. The Department is, however, cognisant of the needs of the child care groups and hopes to be in a position to advise them on any new arrangements at the earliest opportunity.

I am aware there has been considerable media discussion regarding the comparative cost of child care in different countries in recent times. It is my view that an international comparison of the cost of child care can only be drawn by considering the full package of taxation, central and local, and other supports, direct and indirect, made available to child care providers in each country, together with a review of the structure and disposable income of family units. I am unaware of the existence of any thorough and up-to-date study which shows a valid comparison of the cost of child care in Ireland against that which obtains in other countries.

The increase of over 30,000 new child care places and the rapid expansion of the child care sector have had a considerable and positive impact on employment within that sector. These new child care places are likely to lead to the creation of up to 4,000 new employment opportunities for child care practitioners. The opening of new quality facilities will afford progression opportunities to appropriately trained staff. These will contribute to the creation of a better developed child care sector where people can work in well appointed facilities and can seek promotion opportunities either within their current place or employment or elsewhere. Such factors are important in sustaining a high-quality workforce in the sector.

As previously stated, the availability of tax benefits has also stimulated the availability of child care places. I understand that the child care directorate of the Department of Justice, Equality and Law Reform is considering carrying out a survey of families in each county which will serve for forward planning of services. This survey will also help us assess Ireland's progress towards the Barcelona targets for child care provision, under which each member state of the European Union aims to provide places for a third of all children under three. In addition, the aim is for an early education place for 90% of children from age three to the time they start compulsory education. These targets are again linked to labour market participation, particularly for women. Writing almost two years ago, the OECD group, which under the thematic review of early childhood education and care in Ireland on behalf of the Minister for Education and Science, noted:

To have launched such an ambitious programme is already a real achievement in the Irish context, where few or no models were available. Moreover, the programme has been able to maintain a focus on equality of opportunity, staff support affordability and social inclusion, with 92% of funding going towards the community sector.

This is praise indeed for the efforts of the Government and also those involved in the delivery of the EOCP, be they administrators of the programme or applicants and project developers for the community and private child care sectors. Apart from making considerable progress in increasing the supply of centre-based child care places, the Government is enhancing the awareness of quality issues across a widened range of activities being supported under the EOCP. The programme focuses on many of the equality issues identified in the national child care strategy and aims to ensure a co-ordinated approach is taken to the delivery of child care services throughout the country.

Central to the development of child care at local level are the 33 city and county child care committees. The remit of the 33 committees is to advance child care service provision with local areas through the following: the development of a co-ordinated strategy for child care provision in an area based on analysis and needs, overseeing effective implementation against targets set by the committee; the development of an information strategy concerning the provision of child care within the county, which updates and develops the baseline provided in the national children's census; and the development and support of local countrywide networks and initiatives, which target all categories of child care providers.

Membership of each city and county child care committee is broadly based and representative of the key stakeholders in the child care sector concerned. Committee members give freely of their time to the process. It is recommended that the structures be balanced to include representation from the statutory sector, social partners, local development partnerships, national voluntary child care organisations, parents and the providers of child care. The establishment process was facilitated by the health boards. The first such committee was established in Galway and is very much a success story.

The county child care strategy is implemented through a series of annual action plans, which are also subject to thorough appraisal before applicants are approved for funding by the Minister, through a programme appraisal committee structure. The committees are engaged in a wide range of developmental work to advance the availability of quality child care within counties. As regards the broader issues of early childhood care and education, a number of different pieces of interdepartmental work are ongoing. These include the high level group on child care and early childhood education chaired by the National Children's Office, which was established to consider the issue of co-ordination in the child care and early education areas, while the National Economic and Social Forum is currently reviewing developments since the publication of the White Paper on early education and the national childhood strategy in the 1990s. Both of these pieces of work will inform our future thinking.

In closing, it is only fair to emphasise that the equal opportunities child care programme has been central to the development of child care in Ireland over the past five years. We all recognise the child care sector has flourished over the past seven or eight years and will continue to do so under the careful stewardship of the Government which has recognised the need to foster the sector and which has provided significant funding, both directly and indirectly, to support that growth. The panoply of supports made available under the EOCP and the broader range of Government initiatives to support the child care sector is a testament to its commitment to support parents in meeting both their child care and employment needs for the economic and social betterment of the country.

Sheila Terry (Fine Gael)
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The Minister of State is again welcome to the House for this important debate. It is of great concern to many of us and we have managed to debate it while discussing other Bills in this House because of its importance to women. As the Minister of State can see, only female Members are in the House, despite fathers being parents with responsibilities as well. In this House, it always appears to be the women who speak on family issues. It is a pity we do not see more men, but I expect some men may speak on this issue during the course of this afternoon's debate.

By and large I welcome and support the work being done under the equal opportunities child care programme. While we are playing catch-up in the area of child care, at the same time one must welcome the work being done under the programme. That work and funding have resulted in more community child care places being made available. There are also more trained personnel and children from disadvantaged areas in particular are benefiting. I welcome and commend the work being done by the various county child care committees. The couple of disadvantages I have to highlight include the fact that funding will run out. I ask that it be continued after the National Development Plan 2000-06. Perhaps the Minister of State in his reply might address what will happen when the funding runs out. Even the current programme needs additional funding and I would like to see that happening.

We are playing catch-up as regards the provision of child care. Irish society is completely different from what it was 30 years ago. In 1971 there were far fewer women in the workplace. Today, the increase in the percentage of women working is 140%. That is an enormous change in our society and the stresses and strains it puts on families is evident every day. We hear more and more about this from families who are under stress. They are demanding the implementation of more family-friendly policies in every area of life. While the Government is responding, it is doing so slowly. We need to see greater and faster change in this regard. OECD studies show that Irish women's participation in the workplace is at the EU average of 56%.

We are going to see some changes and I want to quote from a press release issued by the Irish Congress of Trade Unions which asserts that child care costs and availability will drive women from the workplace. It is headed,"Working families burdened with equivalent of second mortgage", and states:

Childcare costs and availability risk driving women from the workplace unless there is immediate action. For too many working families the monthly cost of childcare is almost the equivalent of a second mortgage.

Many younger working families find that burden very very difficult to deal with and it has led to one or other partner giving up work, or cutting back on working hours in order to reduce the childcare bill. Most often, it is the woman who will make that sacrifice. In addition, many working families cannot access childcare facilities in their locality.

A recent survey found that almost two-thirds of crèches had waiting lists at the end of 2003. This has huge implications for employment equality, the role of women and indeed, continued economic growth. After all, a key factor in driving recent growth has been the increased number of women in the workforce.

Congress also cited ESRI figures from 2003 that showed a 2.5% drop in female workers aged between 20 and 24, as well as a 1.6% drop in female workers aged between 25 and 34. This the first time such a drop has been seen in a decade. Congress went on to state that it believed such worrying figures reveal that women are being forced to choose to stay at home because child care costs are so prohibitive. It will be a sad day for women if they have to give up their jobs because they cannot afford child care costs.

Many families with one child will struggle to meet those costs along with their mortgage or rent costs. When a second child comes, it is really crunch time for many families. Couples feel restricted in the number of children they can afford to have and that is a pity. If we look to some of the countries in Europe, where they have found that couples are having only one child, incentives are now being put in place to make it easier for parents, usually the mother, to stay at home for a number of years. While they may have an ulterior motive, which is to encourage them to have more children due to the drop in population and concern about the provision of pensions in the future, it is also for the good of the child. That could also happen here in a few years time. The principal reason must be to support the child and to ensure that he or she has a good upbringing.

When we talk about child care to enable parents to go to work, we must also remember that early education is a beneficial provision for a young child. We know that children benefit from early education. It is not right to target people from disadvantaged areas, but they are usually in the lower socio-economic division and children from those areas will benefit greatly from early education. I would like to see much more being done to make it more available and accessible to parents from disadvantaged areas.

I suggest that we take a broader view and look at our infrastructure. When we build schools and community centres in developing areas, we should not just look at the provision of primary and secondary schools. We should take an holistic view of the entire life cycle of the community and look at the provision of facilities for pre-school children as well as after-school provisions for older children. Such facilities should be built into complexes. We should think about how working parents have to plan their day, where they take the young child to a crèche and the older child to school, often in different directions. If we look at how we plan our infrastructure, it would be of great benefit to families. We should provide early education locally in a complex that deals with all types of education for children.

A number of private child care providers have pointed out to me that they have to pay rates on their buildings. I have also been contacted by families who used these private crèches because the cost of the rates is enormous. It is very difficult for child care providers to make a profit and the cost of those rates are being passed on to parents. Child care facilities should be treated in the same way as schools. The private sector is providing a great facility and service and we need more private sector crèches. Making them affordable is what they are trying to achieve. If they could be excluded from rates, it would help in keeping the costs down. We would be doing a service to providers and to parents, who are the users of the child care facilities.

This is one the biggest issues facing families today and if we do not address it, we will lose women from the workforce. These are women who are well educated and who have a contribution to make to our economy. They have already made a contribution to the economic growth in this country. If parents have to leave work because of child care costs, that is a loss to our economy. It is very hard to regain that loss, as these women come from a skilled base of acquired knowledge. Women are slow to give up their jobs. They know that by taking many years out of work, it is hard to get back into the workforce again. We do not make it easy for them.

Last week we debated the Parental Leave (Amendment) Bill 2004 and I remind the Minister that this Bill does nothing to help parents during their working lives. This is particularly the case for parents on low income as they cannot afford to take unpaid parental leave. I ask the Minister to look at this issue again and to introduce paid parental leave. We need flexible work friendly practices so that women can participate in the workforce and are not excluded. Lone parents feel most excluded from the workforce because they find it so difficult to meet their rent or mortgage costs on one salary, as well as trying to pay for child care. It is almost impossible for them to do so, yet they are criticised for staying at home. A stay at home mother makes a great contribution to society. I applaud women and couples who take the decision to stay at home unpaid. The contribution they are making to society goes unrecognised.

When a number of parents were surveyed in 2002, 62% of mothers and 86% of fathers in Ireland stated that they would like to spend more time with their family. While one in six of the population is in part-time work, over 70% of such workers are women. Much of that would be down to the provision of child care. I welcome what the equal opportunities child care programme is doing.

Despite the fact that we are playing catch-up, there is no guarantee that funding for the programme will continue to be provided. While some women are at risk of being driven out of the workforce, others do not get the recognition they deserve for staying at home to look after their children.

Margaret Cox (Fianna Fail)
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I welcome the Minister of State, Deputy Fahey, to the House. I am the first speaker from my party as Senator Kett, our spokesman in this area, was good enough to allow me to use his slot to give me more time to make my points. It is not the case that he is not interested in the subject as he will speak later in the debate. There are many men in Fianna Fáil who are interested in the child care issue.

It is unfortunate that the Minister of State and I are west Galway colleagues as we may not be friends at the end of the debate.

Frank Fahey (Galway West, Fianna Fail)
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That is not possible.

Margaret Cox (Fianna Fail)
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Of all issues which have arisen since I entered the House in 1997, none has caused me greater concern or made me feel more of a failure in Fianna Fáil than the Government's approach to child care. Despite attempts on many occasions to solve the problem, I stand here in 2005 to note that we have not done so. I have had two children since becoming a Senator and after the birth of each I thought circumstances would improve. Sadly, they have not, for which I must share the collective responsibility as a member of my party. We have failed and continue to do so. When one listens to fine words like those of the Minister of State this evening, the reason becomes obvious. We have not listened carefully enough to identify the real cause of the problem.

I make my point in recognition of the action which has been taken. Child benefit has been increased on foot of its adoption in the programme for Government as the universal mechanism to tackle child care costs and child poverty. As the mother of four children who receives child benefit every month, I acknowledge how fantastic the provision is. However, it fails to address child care costs. While the essential policies the Government adopted to create more child care places have been successful and I recognise the foresight and effort of Ministers in formulating them, there are still not enough spaces and nothing has been done to reduce costs. I also recognise the role of the Ombudsman for Children and the difference the office will make to the care of children.

Senator Terry's views on parental leave, which was discussed in the House over the past two weeks, were correct. Parental leave is only of benefit to those who can afford to take time off or who work in organisations which can afford to provide them with one or two days off per week over a given period. The economy is based on the success of small and medium enterprises. Until we create a context in which employers can allow people to take 14 weeks off work by providing paid leave, parental leave will be of no benefit to most workers. If one works for the HSE, a local authority or Department, one can take a day off per week per child for the next five years, which is excellent. However, the Government must listen to the pleas of small businesses which cannot afford to make such provision. We must solve the problem by discussing parental leave and providing a payment to cover it. Perhaps it is time to examine the mix of child benefit and parental leave to help people meet the costs involved.

Our talk of family, work-life balance and the creation of a sexy agency to distribute wonderful posters is a waste of time. Those of us who are working mothers do not have the time to think about these matters. We do not know how to deal with the stress of trying to address the work-family balance. If one still has two hours of work to do at 6 p.m., one may wonder if one will get out the door and who will pick up the children. An argument is inevitable when one phones one's husband to say he must collect the children and he insists it must be the other way around. In that context family-friendly policies and the idea of a work-life balance are a joke. We must take real actions, such as the provision of a double-tax relief on the incomes of workers in companies which allow their employees to go home during family-friendly hours.

Additional moneys should be granted to companies to put in place policies to support people who need to work fewer hours or job share. My focus is on support for small organisations as Departments, local authorities, the HSE and multinationals can cope. Small organisations employ people on a daily basis and create the wealth we enjoy which allows us to make choices about how we use our resources. We must cease to make the work-life balance a joke. We all need the Government to make a difference.

While the national children's strategy is wonderful, more needs to happen to follow it through. The children's ombudsman is crucial in this context. I acknowledge that the initiative was put in place by the current Government with the involvement of the Minister of State, Deputy Fahey, in one of his previous roles. While county child care committees are great, has the Minister of State ever received a call from someone in the constituency to say his or her facility had been deemed by a committee to have one child too many or to be too small and will, therefore, be closed? Subsequent to such a call, 25 mothers will be on the phone to ask what they will do when the crèche is closed within days. Complete pandemonium ensues. Improved communications and a flexible approach to regulation are required. It may even be time to review the regulations in this area. In a large crèche, does the absence of an additional 6 sq. ft. of space make such a difference that parents must be required to wonder where to bring a child the following week when it is closed?

The real problems are the cost of child care, a lack of recognition and unpaid parental leave. It is very cost effective to employ a child minder if one has three, four or five children and to deduct tax from the salary, pay PRSI and insure the house to allow someone to come in. However, one does not receive a tax-free allowance to do so. As a Senator, I receive a salary of €50,000, which translates to €3,000 per month. It barely covers the cost of a child minder. It is net income on which tax has been paid but then I pay more tax and PRSI for which I get no recognition. All any parent wants is some form of recognition and support to make life easier.

In the good old days we used to laugh at the idea of a double income with no kids, but now it is a case of a double income with kids and it is bloody hard. A couple may have a mortgage and two car loans if they work in different locations, but if they have a child, they must also pay €1,000 per month to a crèche. Senator Terry was right to point out that people begin to wonder if they can afford a second child, which would mean €2,000 per month, and wonder what would happen if there were a little mistake. It goes on and on. We have created a new stratum of social disadvantage which exists not in our local authority estates but in middle-class estates where men and women pay taxes, PRSI, doctors' bills, as they do not have medical cards, and fund activities for their children which create additional facilities and incomes for people. They contribute continually to our economy but we ignore them. We are certainly not making life easy for them.

At issue are recognition and equality for women. If a couple have a second or third child, the question arises as to who will give up work. In many cases it is the mother, not the father, who does so. Fair play to the mother, because she is walking away from a lot. She went to school and college and worked really hard at her job for the first five, six or seven years. She is giving it all up to leave the workforce and come back in five six or seven years' time. It is not easy. I run a recruitment agency in Galway and know what it is like. I know how difficult it is for women to return to work after six, seven, eight, nine or ten years. It is virtually impossible, unless these women can up-skill. That is another challenge for us.

The cost of child care discriminates against women and middle-class families where both parents go out to work and pay child care costs. What can we do? What sort of ideas have we got? It is not about bashing the Government; it is about coming up with a solution. When we asked for this debate, we talked about coming up with a solution. Child benefit is not the answer to child care costs. It is part of the solution but it is not the entire solution. I will say as much at parliamentary party meetings and we need to keep saying it.

We must also recognise the importance of both parents working. We must address the issue of parental leave and ensure that parental leave is available to both parents and that there is some form of payment. We recognise this issue with regard to carers and maternity benefit. Why can we not recognise it with regard to parental leave? We should start small and increase it time by time. If we stop increasing child benefit payments by huge amounts we can perhaps look at how to allocate payments over a broader spectrum. Let us look at financial initiatives for organisations. What additional tax incentives and grant aid supports can be given, particularly to small organisations, to assist them in introducing the type of initiative we seek?

Senator Terry referred to infrastructure. Has anybody tried to get up at 7 a.m., make six bottles, get the children up, feed them their breakfast and get the first child ready for the crèche drop-off at 8 a.m.? Senators must remember that this is what can be involved.

Mary White (Fianna Fail)
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It happens to everybody.

Margaret Cox (Fianna Fail)
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It does. Has anybody tried to do all this, then get the children ready, put them into the car and do the drop-off at the crèche? School does not start until 8.50 a.m. but one must be in work at 8.30 a.m. and everybody is going in different directions. It is impossible. What is one like when one gets to work at 9.30 a.m? We should probably not even consider that.

Earlier I alluded to the regulation of crèches and child care committees. The system is not very flexible. When one makes an appeal to a child care committee and speaks to the person in charge, including the inspector, they are reasonable in their response. However, they put the fear of God into the person who runs the crèche and the mothers and fathers who have children there. It is neither fair nor right. That additional worry is not needed. While it is important to ensure children are well looked after, there must be some flexibility. A person who runs a crèche recently said that when a worker is out sick most organisations can get cover for them. However, if one is running a crèche and a worker is out sick, woe betide if that is the day an inspector calls to the premises because there is no way he or she will believe it just happened like that. It is that simple.

Why can we not disregard all income in respect of those who look after children in their own home? The Government introduced a disregard for €6,000 in respect of the rent a room scheme. We are essentially saying it is better to get €6,000 from renting a room than from looking after children. We could immediately create a whole new economy, not a black but a legitimate one, by providing a similar disregard in this area and giving value to the work done by those women at home.

When one gets pregnant, the first date one makes is not with the gynaecologist but with the crèche. The crèche is going to take the baby, so one does the tour of the crèches. I do not know what it is like in Dublin, but I know what it is like in Galway. If one is an employer, female employees will come in devastated and in tears, not because they are unable to come back to work but because they are unable to find a crèche. It is impossible.

The Minister of State is a straight talker and he referred to making comparisons with the situation in Europe. It is a bureaucratic approach to say that a comparative approach will be taken on the question of structures and supports. The Minister of State should forget these and look at what people pay on a daily and weekly basis and compare those instead. That is what we need to address and until we do so we will not deal with the cost of child care.

Mary Henry (Independent)
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Senator Cox's excellent contribution was very interesting because it reminded me of the situation of 30 years ago. Sadly, no progress whatsoever seems to have been made in the area of child care. It is depressing that I have been in this House for 12 years and that one of the first things I did was to look, with Deputy Mary Wallace, for a site which would be suitable for child care within the environs of Leinster House. We located several places, but there is nowhere for staff or members of either House to have their children looked after. We will have a swimming pool and a gym before we have somewhere for children to be looked after, despite the great demand.

Senators Cox and Terry spoke about the involvement of women in the workplace. The issue of women in education has made a huge difference in the involvement of women in the workplace and in the economic success of the country. We have just discussed the OECD report on higher education. Part of it showed more women than men now attend our third-level institutions. There has been a huge increase in participation by women. More women also go on to do postgraduate degrees and post-doctoral research. They are not just staying in education until the age of 24 or 25 years, but perhaps until they are 30 and involved in research, which is extremely important for the success of the country. These women have serious difficulties in terms of child care because they are on much lower grants and funding than those in employment. They are in a serious situation. I am a member of a trust association in Trinity College which tries to help students with difficulties. Appeals for funding for a crèche in addition to the one we already have is one of the most urgent issues we must address.

There is another issue which I have raised over the years and which I consider would be helpful in the area of child care. Senator Cox mentioned that one cannot get tax relief on child care or elder care, etc. It is terribly difficult, because one is, after all, employing another person. France, which has good municipal child care, has a system whereby one can buy special books of cheques in banks, building societies or post offices which can only be used for employing people in one's home. One can buy cheques each year up to the approximate value of €5,000 to €6,000, and use them to pay for child care, elder care, grinds or piano classes. One does not pay tax on the money, nor does the person receiving the cheque. It cuts out the black economy. It is a very useful way of ensuring people can get other people to work in their house for a certain amount of time. It gives them tax relief without costing the State a great deal of money. Perhaps the Minister of State could raise this issue again. I had hoped the former Minister for Finance, Mr. McCreevy, would look favourably on the matter before he went to higher places, but it did not happen. Perhaps the present Minister, Deputy Cowen, will do something when I put it forward.

The Minister of State and Senator Terry raised the very important issue of child care for children in disadvantaged areas. As we saw in the OECD report, free fees have not resulted in more people from poorer socio-economic backgrounds accessing third-level education. These people fall out of education at a much earlier stage and must be helped at pre-school, primary and secondary stages. In parts of Dublin, the success of breakfast, dinner and homework clubs shows how much they are appreciated. They are extremely popular and seem to play an important role in keeping young people at school.

The issue of parental leave, which we discussed last week, was addressed. Without such leave, a great number of people could not avail of programmes to enable them to return to education. As I pointed out in last week's debate, this is one of the most important factors in retaining people within the workforce. Mr. Peter Sutherland seems to think that we will not need 45,000 immigrants annually but almost double that figure to fulfil our economic requirements.

Recently, there have been some extremely ill-informed and malicious comments concerning teenage mothers. It was stated that they were becoming pregnant to avail of the State's largesse. That stupid idea had been put firmly to rest, however, because there is plenty of international evidence to show that is not so. Nonetheless, it is true that teenage mothers are likely to remain in poverty for the rest of their lives. It is vital to get them back into education as rapidly as possible.

In the course of this debate someone said such mothers should not receive the lone parent's allowance unless they go to school. They will go to school but in some cases they may have fallen out with their families and so there is no one to mind the baby. Another problem is that in order to obtain the back-to-education allowance that might be used to pay a child minder, one must be out of education for two years. I cannot speak for the Minister of State, but if I had left the education system at 16 years of age, it would have been much more difficult for me to re-enter it at 18. It is easier to recommence schooling after taking only a short gap to give birth. I hope the Minister of State will be able to get the Department of Social and Family Affairs to change its rules on this matter because they are not a good idea. Even attending a Youthreach programme counts as being in education. The existing rules do not constitute a good way of encouraging young people to resume their studies.

Parental leave is extraordinarily important, particularly when children suffer from illness. The financial situation is difficult enough for two-parent families where both partners are working, but it is impossible for lone parents.

Mary White (Fianna Fail)
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I welcome the Minister of State and compliment him for batting out on the issue of child care on "Prime Time" last Thursday. As previous speakers and the ladies in the Gallery know, child care is the most important issue facing thousands of parents in all income groups with babies and young children, as well as those couples hoping to have children. The availability of quality and reliable child care places at reasonable cost is a major concern for parents.

Currently, 70% of child care places are provided in the informal economy, by neighbours, relatives and local child minders. However, the availability of such people is shrinking because unemployment is at an all-time low level and, in particular, women of all ages are pursuing careers. The remaining 30% of child care places exist in the formal economy, comprising a mix of full or part-time private and community services.

Listening to the Department of Justice, Equality and Law Reform, one would think it was the other way around and that 70% of child care places were being provided in the formal economy. Despite all the talk of money being invested in child care, it is the informal economy that accounts for some 70% of child care places. I do not to have to spell out what that involves.

There is no question but that, since 2000, EU-backed funding of community child care places has increased by one third, but the number of places available is woefully inadequate in every community. Much good has been achieved but the Government does not realise how inadequate the current child care policy is. For instance, the Government's reliance on child benefit as the main instrument of financial assistance does not make best use of the money spent. The payment of child benefit is largely irrelevant for well-off families and, given the cost of child care, it is of marginal assistance to most families.

In reply to a parliamentary question on 11 May 2004, the former Minister for Finance, Charlie McCreevy, stated, "It has been decided that child benefit will be the main fiscal instrument through which support will be provided to parents with dependent children. Unlike tax relief, child benefit provides support to parents irrespective of their income status". However, I would like to know why at least 12 or 13 official Government documents have suggested that tax relief is the major instrument by which child benefit should be provided. There has been an anti-poverty strategy, a National Development Plan 2000-06, the national child care strategy working group, the national children's strategy entitled Our Children — Their Lives, the report on consultation for a national action plan against poverty and social exclusion, and the White Paper on Early Childhood Education entitled Ready to Learn. The list of reports continues and most of them stated that tax relief was the way forward. When these documents were drawn up by professional people and sent to the Government, the Department of Finance officials decided to approach the issue by way of child benefit.

In November, I made a presentation on child benefit to the Fianna Fáil parliamentary party. Most people sitting in that room did not know that such benefit for the first and second children amounts to €34.50 per week. What in God's name would that sum contribute to child care costs? The cost of child care in Dublin is €800 to €1,200 per month. There are waiting lists for such facilities. The cost to parents with two children in a crèche is the same as having a second mortgage but the downside is that there is no tax relief. The situation is disastrous.

I have studied all the fabulous reports to which I referred earlier but what happened when they went to the Government? Officials from the Department of Finance said, "No, we will do it by child benefit because we want it to be equal for everybody". In that respect, child benefit is a complete and utter farce.

My proposal for tax relief would include parents on low incomes. If they use child care facilities they should get tax allowances or tax credits for their child care places. I do not wish to eliminate anybody but using child benefit as a policy instrument was a good way of avoiding the problem. It was said that the provision of child benefit helped everybody but that argument is pathetic.

Tom Parlon (Laois-Offaly, Progressive Democrats)
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The Senator is going to do away with the children's allowance.

Mary White (Fianna Fail)
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No politician will do away with that allowance but the way of dealing with child care and contributing towards it financially, is not through child benefit, which is a farce. Last week the House had a very good discussion on parental leave. Ireland is one of the few countries in Europe where the State does not make a financial contribution for parental leave. It was discovered that more women from the higher income groups avail of parental leave because women in lower income groups cannot afford to take it. I have studied this matter with colleagues for the past three months, as a result of which I call for tax relief on child care costs and I also call for——

Tom Parlon (Laois-Offaly, Progressive Democrats)
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Would that not increase the cost?

Mary White (Fianna Fail)
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No. Tax reliefs are utilised by Government for economic measures such as urban, rural and hotel developments. When there is an economic or social crisis the Government decides to use tax benefit to develop and grow areas where the need is greatest. Tax reliefs are commonly used fiscal instruments.

The Celtic tigresses are now deciding they cannot have a second child because if they do they will have to stay at home. That is a fact. I talk to such people all the time. This is another bad example of fragmented Government activity. A total of 11 Departments deal with different aspects of family and child benefits. I call for a co-ordinated Government approach, which to date has only been successfully achieved in one area. When the former Taoiseach, Mr. Haughey, came up with the proposal for a financial services centre he decided to take a co-ordinated Government approach. We now have a successful financial services centre contributing €720 million to the economy.

The present system is no way to help families. Other speakers referred to those who are disadvantaged. My child policy is a child-centred one. Every child should be the responsibility of the State.

Tom Parlon (Laois-Offaly, Progressive Democrats)
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That would be interference.

Mary White (Fianna Fail)
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No. There were 12 people in my leaving certificate class. People could only go to school when Donagh O'Malley provided free secondary education. We must have vision in regard to how we look after children. We must have a strategic child-centred policy. We do not want anybody to be excluded. I have visited crèches in recent weeks and witnessed the high degree of intellectual stimulation available to children who attend them. However, it is children whose parents can afford to send them to crèches that benefit from such a positive start for their children. The child of a single parent who cannot afford to send his or her child to a crèche is missing out on the tremendous intellectual stimulation children attending crèches receive. In one crèche in Herbert Street, children of one and a half years of age were painting. Every three year old in the country should be entitled to 15 hours of pre-school education per week. Children usually go to school at the age of four when they attend junior infants and then senior infants. We have to change the mindset that currently prevails.

I have to be a little brash and say that in countries where there are more women in Parliament, such as in the Nordic countries where the percentage of female representation in parliament is closer to 40% or 50%, more family-friendly policies are enacted. There is no doubt that is the case in Denmark, Norway, Sweden and Finland.

Paul Coghlan (Fine Gael)
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Senator White should not underestimate her own persuasive powers.

Mary White (Fianna Fail)
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I believe in them. I have to win this debate. I urge the Government to change its mindset and introduce tax reliefs for child care and pre-school education. Everybody should be included. The approach taken must be child-centred. No child must be excluded. Children from low income families should not be excluded from all the exciting and stimulating programmes that exist for children. We now know that the early childhood years are critical for brain development.

One can tell who will end up in trouble from observing children at the age of four. It is those who are disadvantaged. The implementation of all the proactive measures to which I referred will help the country in the future.

Kathleen O'Meara (Labour)
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I welcome the Minister of State, Deputy Parlon, to the House for this debate which I requested. I thank the Leader for facilitating statements on the important issue of child care.

Other speakers have noted that so far all those who have spoken on the subject, with the exception of the Minister of State, have been female. That is not unusual in this House. I hope it is not an indication that this policy area is feminised, in other words one that is only of great concern to women. That said, I would not wish to undermine or downplay the passionate support that many women in the Oireachtas give to this subject. I acknowledge the work of Senator White in this area. I hope her party and the Government begin to listen to her soon.

I will limit my remarks to the equal opportunities child care programme which is the subject of today's discussion. The Minister of State referred to the purpose of the programme. It is clear that the programme and the level of investment in it has made a great difference. We must bear in mind that it was coming from a base where there was effectively nothing. Prior to its inception, health boards were involved in the provision of a small level of child care in the community. The purpose of the equal opportunities child care programme is to improve the quality of child care in Ireland, increase the number of child care facilities in place and to introduce a co-ordinated approach to the delivery of services.

I am a member of the board of the Nenagh child care centre which is a state-of-the-art facility that was opened last September. The Taoiseach visited the centre last Friday. It is a great centre that was built beside the county council offices with support from the council, the health board and the usual funders, including the programme under discussion. It is a fine facility which is doing very well, as I have no doubt it will continue to do. The facility is not the kind of one about which I would be concerned. It is in a heavily-populated area with enough support to allow it to successfully operate within the market.

Two weeks ago I visited some child care facilities in Tallaght with other female members of the parliamentary Labour Party. This arose from concerns expressed by people — again mostly women — who were working in child care facilities and who were concerned about the crisis they face. The problem is not on the capital side. The Minister of State referred at length to capital funding in terms of the programme and the high level of grant aid available, which is excellent. It has resulted in the building of a state-of-the-art facility in Tallaght. The crisis arises in the context of staffing grants. Staffing grants are made available but they are not 100% staffing grants. Facilities operating in disadvantaged areas such as Tallaght simply cannot manage because the people who were using the facilities — who are those one would want to use them — cannot meet the costs which the centre has to charge in order to stay in business.

The EOCP is an excellent programme but it falls short. While a great deal of funding has gone into the programme — Senator White may be interested in hearing this — support for it is less than what the Government affords to the horseracing industry. The Government is giving greater support to the horseracing industry than it is to child care. That fact speaks volumes. The Minister for Justice, Equality and Law Reform, Deputy McDowell, has announced what appear, when examined on their own, to be considerable amounts of capital funding for this sector. However, the sector is underfunded when one considers what is required on the ground, given that the daily requirements of these centres are not being met, despite this capital funding.

A recent OECD report on this sector stated:

Without public management and sustained public funding, market-led child care provision remains fragmented and inequitable. For this reason, governments in the English-speaking countries are obliged to intervene constantly by increasing child care allowances, reviewing quality provision and even directly funding parts of the system.

We need to consider directly funding part of the system in Ireland, particularly in disadvantaged areas. We are only at the first block or foundation stone of building this process.

The OECD report on early childhood education in Ireland was published in December 2003. It was published against the background of the Barcelona declaration, to which the Minister of State referred, and states that, as EU partners, we are committed to providing child care to at least 90% of children aged between three years and mandatory school age and at least 33% of children under three years of age by 2010. However, we are nowhere near achieving that target.

The current Irish coverage for the three to six age group is the second lowest in Europe, which includes the primary sector. The pre-primary and pre-school sector barely exists. We must recognise and acknowledge the contribution of the voluntary sector, particularly pre-school playgroups and the nurseries association. We must also acknowledge the work done by these groups which are mostly comprised of women battling away to provide a service and a place where children can get the best start in life and receive high-standard provision at an affordable level.

I am sorry the Minister of State, Deputy Fahey, is not in the House to respond to this issue but I will raise it nonetheless because it was raised with me. I did not see the "Prime Time" programme on child care last week because I had a prior commitment. However, I understand the issue of low pay in the child care sector was raised and the Minister of State responded by stating that at least such workers were receiving the minimum wage. If that is not the case, I apologise, but that is what was reported to me.

I would be very disappointed if the Minister of State's attitude was that it is acceptable to operate on the basis of the minimum wage in the child care sector since that reflects a Government attitude that low pay is acceptable in that sector and is being tolerated. Child care in many areas also depends on community child care facilities, FÁS workers, CE scheme employees and so on. This is not necessarily a bad thing but it goes to show how unstable and relatively unsupported the entire sector is. I know people employed on community employment schemes who are doing excellent work, having been well trained on FÁS schemes.

The Centre for Early Childhood Education and Development in Drumcondra, of which Heino Schonfeld is a director, points out that to operate at that level demonstrates a lack of full support and commitment to this area. It is not where we need to be. It would be acceptable in the interim or if it was sporadic but to find that most child care facilities rely on community employment workers to keep costs down and maintain staffing levels is unacceptable.

The capping of staffing grants, to which I have already referred, is having a detrimental effect on child care facilities in disadvantaged and sparsely populated areas. I come from a rural constituency, as the Minister of State, Deputy Parlon, knows since his base is next door to where I grew up. He will know that the population is insufficient in places such as Templederry and smaller areas where the community is trying to develop mother and toddler groups and other daytime child care facilities. Women in these communities are struggling to put in place some facility for their children and by not supporting these women we are cutting off our nose to spite our face. There is much evidence to show that investment in pre-school and early childhood education pays off greatly. This view is supported by the OECD and every other expert.

The Competitiveness Council is not exactly an expert on child care but it is a Government body which is presumably committed to pointing out to us what we need to do to stay competitive. It has stated that the absence of targeted pre-primary initiatives is having an economic impact. It also points out that the school drop-out rate remains the same now as it was during the 1980s when times were much harder. Why is it that despite our economic prosperity and our investment, we are stuck with an unacceptably high level of early school leaving, which means that 18.2% of students currently do not complete second level education? The Competitiveness Council describes this as an untapped resource for the economy which represents a decrease in the average productivity of our workforce. It refers to the merits of targeting pre-primary interventions and states that potential long-term competitiveness benefits have not received much attention. In other words, we have looked at it from the child's point of view but not from that of the long-term health and competitiveness of the economy. It is unacceptable to have that number of students not finishing secondary school, particularly considering our stated objective of becoming a knowledge-based economy. The only way to break this trend is to have well-resourced, targeted intervention at pre-school level.

Mary White (Fianna Fail)
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Hear, hear.

Kathleen O'Meara (Labour)
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In other words, we should target those parts of the community in which the school drop-out rate is highest. We know where these are because there have been sufficient reports to almost identify where every child is but we are not doing anything about it. We need to intervene early and support poor families and lone parents. God knows there has been enough talk in recent weeks about lone parents. We could put in place a whole set of initiatives. For example, in Tallaght one could support lone parents in their homes, parents who are struggling with low or no incomes or those with a family history of social dependency. However, the most important factor would be that people would have access from day one to high quality pre-school and crèche facilities in the community. The only way in which this will be done is by spending money but it will be an investment well worth making and it will pay off. However, this investment is not being made and, if that continues, we will remain stuck with the same problem recycling itself over and over again.

If we are to prevent the cycle repeating itself, we must consider the assistance we are giving communities, the head start being given to a child and the support being given to the family. In purely economic terms, one must consider the contribution that a particular child could make as an adult in his or her own family and community. When one considers the cost of social deprivation and poverty to this economy and community, is it not worth examining this proposal? This is where this programme comes into its own as it could deliver our objectives.

The equal opportunities child care programme was always supposed to be seen in the context of targeted interventions, particularly for children from disadvantaged communities. A town such as Nenagh would not have the same problem as some of the really deprived areas of our cities which are suffering major deprivation. The child care centre in Nenagh also gives huge support to children from those families through other initiatives, such as the ADM funded initiatives. That offers the chance to break down the cycle.

I appeal to the Minister to examine this programme, particularly staffing grants. He should consider giving full funding to those areas that need it. He should also talk about sustainability in the long term rather than the short term. I understand from somebody in this sector that the Department has issued letters stating that the centres must be sustainable by September 2005. Is that correct? If so, that is too short a term. It will take years for many of the facilities to be up and running. The facility in Nenagh is working well but centres in many other parts of the country will require far more support than they currently get.

I have no wish to run down this programme; it is a great programme. Looked at in the context of what is required and the fact that it started from nothing, I must acknowledge, as the OECD does, that the structured approach that was put in place, that is, the county child care committees and the committees involving all stakeholders, is a good one. Setting it up was a laborious process and it took long enough. However, it is in place now and is working well. The right people are on the committees. The co-ordinated structure is in place but, again, it only scratches the surface of what is needed. It needs to be working better, particularly in disadvantaged areas.

I am informed that the centre in Tallaght, which is due to open in March, is in danger of not opening because of underfunding for staff and the capping of the staffing grant. The centre simply cannot make up the additional income needed to sustain it. It is a scandal. The centre is a state-of-the-art facility and it is an integral part of how Tallaght is developing. It is also supported by the local authority. Will the Minister give his attention to that? I have received letters about this from people in all parts of the country. One letter is from a group in Charleville that is severely strapped for funding due to the staffing grant problem. This problem is arising everywhere and the Minister must respond to it.

I have run out of time. I will raise this issue again, under a number of headings. As Senator White said, this matter does not belong to one Department but to many. I intend to find some way of targeting every Department on this issue. I have received great support from the Leader of the House in facilitating this approach. I am looking forward to a rolling debate and I certainly look forward to seeing results.

Jim Walsh (Fianna Fail)
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Senator Kett will give a male perspective on this topic.

Tony Kett (Fianna Fail)
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I feel inadequate and vulnerable——

Kathleen O'Meara (Labour)
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The Senator is not inadequate.

Tony Kett (Fianna Fail)
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——after listening to Senator Cox's in-depth, realistic life experiences and knowing that Senator White has made this one of her main issues since becoming a Member of the House. Not having the in-depth knowledge or the hands on experience of these ladies, I am thankful at this stage that my family is almost reared.

There has been massive social and economic change in this country, particularly for women, in the past 30 years. My wife worked in the Civil Service, as did Senator White. They had to give up their jobs when they got married. It was only in the mid-1970s that women started to remain in the workplace after marrying. Even then, the majority more or less disappeared when they had their first child. They did so for different reasons. One was undoubtedly the shortage of child care, the subject of our discussion this evening. Many of the women who remained in the workplace — I am sure most of them needed to do so — did so because they probably had a family member or a good neighbour to assist them with child care.

I was struck by some of the information in the document on the Equal Opportunities Childcare Programme 2000-2006, particularly on the participation of women in the workforce. The survey showed that participation rates for women had increased to 49.5%, as distinct from 71% for men. That is a considerable increase since 1997. The relevant growth was 8%, which masked growth in absolute terms of 31%. The number of women in the workforce increased from 588,000 in 1997 to 770,000 at the end of December 2004.

It is significant to look at the number of women in part-time and full-time employment in those figures. In the period 1997 to 2004, the number of women in full-time employment grew from 406,000 to 530,000, an increase of almost 31%. In the same period the number of women in part-time employment increased from 182,000 to 240,000, an increase of almost 33%. There is another interesting statistic in the document. A total of 13,000 women deemed themselves to be under-employed in 1997 but only 1,900 deemed themselves under-employed in 2002.

This appears to suggest that women are quite happy to work part time. In my place of employment, women comprise between 75% and 85% of the workforce. I talk with them and deal with their requests for job sharing. An increasing number are seeking job sharing opportunities. There are a number of reasons for that. From the financial point of view, they probably consider it a better proposition to work part time and pay half the child care fees than to work full time and pay the full amount of fees. Although they lose in their net pay, they gain more by paying half fees for child care. That is a simple fact. My colleagues suggested that some assistance be given, whether it be as a tax break or in some other financial guise. Without doubt, in certain circumstances there is a need to give serious consideration to that issue. Our job as legislators is not to question whether people should work but it is our job to make choices available to them.

The situation of lone parents has been discussed at length. I read in an article some time ago that, according to the 2002 census, there are 150,000 lone parents in the country, 85% of whom are lone mothers. Statistics show that lone parents are over-represented in the category of families living in poverty. Apart from families headed by somebody with a disability, lone parents are most in need of targeting in that regard. Despite what Kevin Myers might have thought, relatively few people decide to become lone parents. While people become lone parents for a variety of reasons — death, separation, divorce, unplanned pregnancy, a member of the family being put in jail, or otherwise — it is traumatic whatever the circumstances. Moreover, lone parents are at high risk of falling into the poverty trap. Employment may be available but it may not be feasible for a lone parent to work, for a variety of reasons. I am sure not many employers would allow a lone parent to leave work to collect a child at school, for example. Serious consideration is required in this regard.

Although I do not say this in a broad, sweeping way, many female lone parents would have less education and, hence, would probably find themselves in insecure jobs. It is impossible for such women to consider paying child care fees. In 1994, one-parent families accounted for one in 20 of those in consistent poverty; that figure in 2003 was one in five. Much work remains to be done to bring about a situation where lone parents can feel that we, as legislators and as a country, are in some way concerned with their well being.

It is heartening to see the changes brought about by the equal opportunities child care programme. This is due in no small way to the great efforts of community based, not-for-profit organisations working in every corner of the country, trying to make it possible to deal with local child care needs. The number of new child care places being created under the programme is on the increase and, as a consequence, women can make their own choices in this regard.

We are moving in the right direction. In recent months, the House passed the Maternity Protection (Amendment) Act 2004 and debated the Parental Leave (Amendment) Bill 2004. The latter Bill was much maligned by some but, whether one likes it, it is not a regressive but a progressive step. While we may in future find a way to encourage Government to make some form of payment or to lengthen terms, we are moving in the right direction in this regard.

Maurice Cummins (Fine Gael)
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I welcome the Minister to the House. I listened with interest to the debate and thought all the contributions were excellent. I thought it would be a case of "Blessed art thou amongst women" but as Senator Kett has intervened, I am not alone here. It has been the case with many men over the years that we have not taken our share of the responsibilities for child care, and I put my hand up in that regard.

Ireland has changed significantly in the past ten to 15 years. Social and cultural changes have had a profound effect. Many families have two parents at work due to the necessity to pay for mortgages. They are forced to juggle the needs of their children and the demands of their careers or education. The squeeze is often harder on those lower down the income scale and those who are caring alone. The traditional pattern of the family, with the male earner and the female dependant at home caring for the children, is no longer the norm in Irish society.

The Equal Opportunities Childcare Programme 2000-2006 is an attempt to address the need for affordable, quality child care facilities. I acknowledge that the funding to date has made a difference in many areas. However, the Minister will be the first to acknowledge that much more needs to be done. The number of applications for capital assistance for deserving and worthwhile projects that have not received funding to date is a cause of great concern to the organisations involved. One example is my own constituency of Waterford. In Waterford city, of five community based projects, only one, the Larchville-Lisduggan project, has had funding allocated to date. There is a pressing need for child care facilities in this area, which I have represented for well over 20 years, and I have no doubt that the money would be well spent.

Another positive aspect of the equal opportunities programme and the capital assistance scheme is that the grant aid is normally allocated for the full amount, allowing organisations to access it without the necessity of a local contribution, which was always a stumbling block in disadvantaged areas. While I am pleased with the allocation in the Larchville-Lisduggan area, four other projects in the city — at the St. Brigid's family centre, Farran Park, Ferrybank and the women's centre in Manor Street — are still in limbo. They do not know whether they are to receive funding this year or in coming years.

The situation in County Waterford is similar. Dungarvan has received no funding for community based groups under the equal opportunities programme and capital assistance scheme. Likewise, Lismore has received no funding to date. County Waterford is in receipt of the lowest level of funding of all counties. Dungarvan, for a town of its size, has no purpose-built child care facility although there is an acute shortage of child care places across the spectrum of child care services. Even those who can afford to pay are faced with long waiting lists. There is evidence to suggest that many people are losing out on opportunities to participate in employment, education and training because of the lack of child care facilities in Dungarvan.

Another important point which is mirrored throughout the country is that many parents active in community groups and, therefore, in contact with educational and training services, are unable to get involved due to the lack of flexible and affordable child care. This is particularly so for women and lone parent families. Will the Minister indicate when these projects will be reappraised? Is it likely they will receive funding this year or in coming years?

OECD studies show that female employment in Ireland is at the EU average of 56%, an increase of 140% since 1971, which is a staggering development. Women's participation in the labour force is expected to grow by a further 218,000 by 2011. However, the number of parents raising children alone has risen. Employment rates among lone parents are low and lone parent families are disproportionately at risk of poverty. Child care and other supports are necessary to allow them to access work, training and education, where necessary, to support their families.

There is a growing awareness of the balance of rights and responsibilities among families, from children to parents and even grandparents. It is possible to have a society which values and supports childhood and the family, and to have public policies which enhance that value and support. Family support must be concentrated on meeting the needs of families. It should include more than health and well-being needs and should extend to the wider social inclusion needs of the family.

For lower-income families, the gap has widened. Not all families can afford transport to visit dispersed family members, child care for working parents or the latest in electronic games to compensate for the lack of local play facilities. For other families on the average industrial wage, the need for both parents to work to pay the mortgage or to provide for family medical bills is a prerequisite. For many, there is no element of choice for one parent to work or stay at home to care for the children.

The growing pressures facing families have been ignored. Rapid development has heaped disproportionate burdens on young families but especially young mothers. Work-life balance has become an issue because of wide-ranging economic and social changes. Over recent decades the support of extended families and communities has been diluted.

When surveyed in 2002, 62% of mothers and 86% of fathers said they would like to spend more time with their families. While one in six of the population is in part-time work, over 70% of such workers are women. There is a general feeling in Ireland that those people who avail of initiatives such as job sharing and part-time work are less serious about their careers than those who do not have these opportunities. This is especially the case for people in higher status jobs. A recent survey shows that over 75% of respondents were reluctant to take parental leave, feeling that it would hinder their chances of promotion at work; 50% said they could not afford to take unpaid parental leave, an issue we have addressed. It is not financially possible for a family to avail of unpaid parental leave. One in five respondents said their employers would not facilitate taking such leave, another issue that has been addressed.

This must change if we are to promote family-friendly working arrangements and a greater sharing of gender roles. Parents at work need more flexibility to deal with both longer term child care and emergencies involving their children during the day. Employers must remember that it is family members they employ and not just productive units. If families are dislocated firms will not be immune to the effects. Employers and the State must accept responsibility for this. We should review labour law to recognise the changes needed to accommodate a situation where both parents work and share in the obligations of parenting. We should also incentivise employers to assist the development of family-friendly work practices.

Increasing the provision of adequate child care means more than encouraging women to return permanently to the workforce. Child care should be primarily a caring, developmental and early education service for the child and a service for parents. The policy focus on child care has been on its benefit to the labour market or its use as a poverty relief measure rather than as a support system for contemporary Irish families to show that they are valued. Parents today have difficulty finding local, affordable, accessible and high-quality services for their children. This must not continue. I echo the call for the long overdue tax relief on child care expenses.

Cyprian Brady (Fianna Fail)
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I welcome the opportunity to contribute to what has been a good debate on the equal opportunities child care programme. My first-hand experience of this is in the north inner city of Dublin. Over recent years it has provided opportunities in training, education and employment to communities ravaged by four or five generations of unemployment. It gives people a choice. Whatever mechanisms are used, be it tax relief or otherwise, we should not forget that the original thrust of this programme was to provide opportunities for people to advance themselves and their families.

Child care was at the bottom of the list of priorities for several years in many communities. It was provided by mothers and grandmothers as structured child care did not exist in these areas. In the overall context, though, the programme has come very far. The Minister outlined figures for improvement but we must keep in mind the programme's aim.

I agree with Senator White that the earlier a child is brought inside a structured environment, the better for the community. At that stage the benefits of the investment will come to fruition. The programme has been a step in the right direction but there is still work to be done on it. There are issues to which we must adapt due to recent developments in economics and so on, issues such as infrastructure and the provision of services like child care. I hope the rate of progress is maintained as the programme has done much to improve the situation in what was always an area overseen by women. I bow to their superior knowledge regarding this but it is not a women-only issue.

The tenor of family life and the family unit have changed. Families can comprise a single mother or father or both parents working. However, the burdens are the same for everyone. We must concentrate on relieving these to some extent. This is a hugely important issue, not only for disadvantaged areas but for the country as a whole.

Joe O'Toole (Independent)
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The Minister of State has offered me one minute of his time.

Terry Leyden (Fianna Fail)
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I am sorry, but the Minister of State will reply.

Joe O'Toole (Independent)
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He has offered me time.

Terry Leyden (Fianna Fail)
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I will allow strictly one minute.

Joe O'Toole (Independent)
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I thank the Minister of State. I will not go into great detail but there are two matters I wish to have examined. First, part of the cost of child care is due to the relevant regulations. They are top of the range but are more restrictive and demanding than in any other European country. This drives up the cost. Second, has the Minister of State considered the fact that we give tax breaks to the suppliers of child care but not to the users? People should be allowed tax credits on the cost of child care.

Tom Parlon (Laois-Offaly, Progressive Democrats)
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I thank Senators for their contributions. This is a timely debate and of interest to parents throughout the country. As Senator Brady said, child care is not just an issue for parents but is of central importance to the ongoing support of our economy and the need to achieve better social inclusion. This is why IBEC and ICTU keep the issue at the forefront of social partnership talks. It is also why the Government has increased the level of support for the equal opportunities child care programme to almost €500 million and has made a commitment to ongoing support for the programme following the completion of the National Development Plan 2000-2006. The case for tax breaks and reliefs have been well made. It is an issue that will be examined.

The Minister of State at the Department of Justice, Equality and Law Reform, Deputy Fahey, outlined the many successes of the equal cost opportunities child care programme. I know from personal experience in Mountmellick, Ferbane and An Daingean that such schemes can give a large boost to communities. In terms of overall commitment 20,500 new child care places have been achieved and funding has been approved for a further 13,000. The first phase of the EOCP was never expected to satisfy all of the needs of the child care sector, of parents or of Irish society. It was to be, and indeed has been, a large step in that direction. The Government has, however, increased its financial commitment to the child care sector on a number of occasions over the past five years and, without doubt, the completion of the programme and its successor will go a long way to achieving a level of quality child care which will compare favourably to the rest of Europe.

The Minister of State, Deputy Fahey, indicated that the Minister for Justice, Equality and Law Reform, Deputy McDowell, expects to announce further capital grants in the near future, possibly before Easter. The Minister will make further announcements of capital funding for community groups to address local needs thereafter. Value for money is a major criteria in these situations. Some of the programmes I have recently encountered have focussed on how to take best advantage of the funding in value for money terms. When Members reflect on the achievements to date in terms of Government intervention and the response of community groups on the ground, they will acknowledge that we are at a very exciting phase in developing this service from a very limited base.

We will consider the many useful comments made in the House today. They will feed into and inform our future thinking. Contributions such as we have heard this afternoon are essential to supplement the feedback we already receive through the city and county child care committees which enables us to get a clear picture of the concerns on the ground. I appreciate the contributions. The debate has been totally uncontentious on both sides of the House. Even in gender terms, the ladies dominated at the outset but the gentlemen who contributed later showed a clear understanding and, like myself, an admittance that our own involvement in child care was less than ideal. There are new men out there now with a different perspective. I thank all for their contributions to a most interesting debate.

Terry Leyden (Fianna Fail)
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When is it proposed to sit again?

Mary White (Fianna Fail)
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At 10.30 a.m. tomorrow.