Billy Timmins (Wicklow, Fine Gael)
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Question 71: To ask the Minister for Finance his policy for the development of the treatment of children in budgetary policy over the coming two budgets. [7124/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The Department of Social and Family Affairs has the primary role in the provision of financial support in respect of children. Child benefit is the main fiscal instrument through which such support is provided. Child benefit provides support to all parents or guardians in their parenting role irrespective of the parents' economic or income status and, as such, it does not contribute to employment disincentives or poverty traps. In line with this overall policy approach, the Government commenced a major initiative to substantially increase the rates of child benefit. With effect from next month, child benefit rates will have, since 2000, increased by almost €88 per month in respect of the first and second qualifying children and by €106 per month for each subsequent child. This means that 92% of the target rates increases announced in the budget of 2001 have now been delivered and, as stated in my recent budget speech, I will complete the transition to a higher rate of child benefit in next year's budget.

The social welfare system also provides additional income support in respect of children by way of child dependant allowance increases to an underlying social welfare payment. Furthermore, family income supplement provides income support to families with children who are at work on low pay. One of the special initiatives under the partnership Sustaining Progress agreement is concerned with ending child poverty and, in that context, the effectiveness of merging child dependant allowance with family income supplement to provide a seamless source of child income support to low income families is being examined. NESC is undertaking this examination and the outcome of this work will be taken into account by relevant Departments in the formulation of future policy in this area.

In regard to child care, the 2005 Estimates provide €43.799 million in current support and €39.633 million in capital grants for the equal opportunities childcare programme through the Department of Justice, Equality and Law Reform Vote. The total number of new child care places being created through this programme from the funding allocated to date exceeds 33,500. It is expected that progress will be maintained in 2006 and 2007 during which it is estimated that a further €96 million in current expenditure and €104 million in capital funding will be provided for child care facilities through this Vote. In addition, the Government has also undertaken measures to favour the supply of child care places by tax incentives to set up facilities and relief from benefit in kind taxation for free or subsidised child care provided by employers.