Written answers

Thursday, 1 June 2006

Department of Health and Children

Child Care Services

5:00 pm

Photo of David StantonDavid Stanton (Cork East, Fine Gael)
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Question 19: To ask the Tánaiste and Minister for Health and Children if she agrees with the ICTU that the workforce participation of women in their 30's is low by EU standards (details supplied); her views on whether the lack of childcare contributes to this with many women leaving the workforce after the birth of their second child; the figures for same; the special social or employment and in-work supports her Department provides or intends to provide for these women; and if she will make a statement on the matter. [17672/06]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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The participation of women in the Irish labour force has risen dramatically in recent years, from 40.1% in 1994 to 55.8% in 2004, and this trend is continuing alongside record numbers in employment. The CSO study "Women and Men in Ireland 2004" provides an interesting picture of how women's role in the labour force is changing and how this pattern may continue to develop as older age women exit the workforce.

The Study reported that, in 2004, 41.7% of the labour force was female. The highest participation rate by women, at 75.6%, was in the age group 25-34. While the rate of female participation declined in respect of later age groups, to 65.9% for women aged 35-44 and to 60.2% for women aged 45-54, the most steep decline was found in the age group 55-64, for which the participation rate was 33.6% a little over half of the male rate for this age group. The CSO concluded that as this age group exit the labour force and are replaced by women entering the labour force at a higher participation rate, the overall employment rate of 60% of women set by the Lisbon Council may become attainable.

While I do not have comparative rates of female workforce participation in EU member states by reference to age, in 2003 the overall rate of female employment in Ireland was just above the EU 25 rate of 55%. Taken together with relatively low rates of participatory decline between the age groups 25-34 and 35-54, I believe it is reasonable to assume that the upward trend in female workforce participation will continue.

With regard to the issue of childcare, as the Deputy will be aware, I have been assigned responsibility for this key area of Government policy in my role as Minister for Children and the Government's major investment programmes in this area are now administered on my behalf by the newly established Office of the Minister for Children. The Deputy will also be aware that the growing demand for quality childcare services to meet the needs of working parents and their children was identified by this Government as far back as 1997 when steps were taken to set up the first major investment programmes in childcare provision.

Under the Equal Opportunities Childcare Programme (EOCP) 2000-2006, which is co-funded by the EU, almost €500 million has been invested in developing a quality childcare infrastructure. By the end of this Programme next year, I understand that over 40,000 additional childcare places will have been created. While the EOCP is still in place, in December last, the Government announced its new National Childcare Investment Programme (NCIP) 2006-2010 under which further funding amounting to €575 million has been committed and a target of creating 50,000 additional childcare places has been set. The new investment programme is also designed to further develop the quality of childcare services in a way which meets the needs of parents and their children for a range of childcare services centred on the needs of the child.

As the Deputy will be aware, my Colleague the Minister for Finance, Mr Brian Cowen, T.D., announced a range of other childcare measures in Budget 2006 which I will now outline. Paid and unpaid Maternity Leave were both increased by 4 weeks from 1 March 2006. These will be increased by a further 4 weeks from March 2007, bringing the total duration of paid Maternity Leave to 26 weeks and the total duration of unpaid Maternity Leave to 16 weeks.

A new Early Childcare Supplement of €1,000 per annum was introduced for all children less than 6 years of age and is effective from April 2006. This is a direct, non-taxable payment of €250 per quarter year, in respect of each eligible child. It is expected that the first payment will be made in August, followed by further payments in October and December 2006 and payments will be made quarterly thereafter. Child Benefit was increased from April 2006 by €8.40 per month for the first two children to €150 per month and by €7.70 per month for the third and subsequent children to €185 per month.

An exemption from tax on income earned from childminding has also been introduced. Where an individual minds up to three children in the minder's own home, no tax will be payable on the childminding earnings, provided the amount is less than €10,000 per annum. While the tax exemption which is being introduced for income from childminding is a matter for the Revenue Commissioners in the first instance, in order to avail of it, a Childminder must elect to make a voluntary notification of his or her childminding service to the person recognised by the HSE for this purpose, effectively the local City or County Childcare Committee (CCC). This will further strengthen the voluntary notification system already operated by the CCCs and supported by the Childminder Advisory Officers.

Budget 2006 also included increased funding for childcare training which will be allocated between now and 2010, to ensure an adequate supply of staff for the additional facilities coming on stream. The aim is to create 17,000 additional qualified childcare personnel as part of the new National Childcare Training Strategy. Together, these childcare initiatives should assist working parents, including women with more than one child, to balance their work and family commitments.

However, while the Government's childcare policy will undoubtedly facilitate female participation in employment, this is not the sole or primary aim of the Office of the Minister for Children in implementing that policy. In addition, the Deputy may wish to note the responsibilities of other Departments in providing supports for parents in employment. In particular, the Minister for Enterprise, Trade and Employment is responsible for promoting enterprise and employment development, while the Equality for Women Measure of the National Development Plan 2000-2006, a positive action programme designed to tackle attitudinal, cultural and structural barriers to women's equal participation in the economy, is a matter for the Minister for Justice, Equality and Law Reform.

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