Finian McGrath (Dublin North Central, Independent)
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Question 216: To ask the Minister for Finance if he will respond to the issues raised in correspondence (details supplied) on taxation and childcare; and if he will take these ideas on board. [17861/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The Government introduced a suite of measures relating to childcare in Budget 2006, along with increased Child Benefit payments, which include the Early Childcare Supplement of €1,000 in a full year for each child up to his or her sixth birthday, a new National Childcare Investment Programme which aims to fund an additional 50,000 childcare places over the next five years, as well as extended paid and unpaid maternity leave. In addition, the Government introduced a new childminding tax exemption, whereby if an individual minds up to three children, who are not their own, in the minder's own home, no tax is payable on the earnings received where the amount received is €10,000 or less.

As regards Child Benefit, from April of this year, Child Benefit payments increased to €150 per month for the first and second children and €185 for the third and subsequent children. These Child Benefit payments represent a 294% increase in the rate for first and second children over the rate prevailing in 1997 and a 274% increase in the rate for third and subsequent children. By comparison, during this period the increase in the consumer price index is estimated to be 34%.

In total, over €2.5 billion extra will be invested in the area of childcare over the next five years, which is evidence of the Government's continuing commitment to parents, particularly those with young children.