Tom Sheahan (Kerry South, Fine Gael)
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Question 202: To ask the Minister for Health and Children her views on whether the introduction of the new subvention scheme with regard to the provision of childcare is the best way forward for the children and parents of rural communities; and if she will make a statement on the matter. [14129/08]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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As the Deputy will be aware, I have responsibility for the National Childcare Investment Programme 2006-2010 (NCIP) under which the Community Childcare Subvention Scheme (CCSS) was introduced in January of this year. The CCSS replaced the previous staffing support grant scheme which was implemented under the EU co-funded Equal Opportunities Childcare Programme 2000-2006 (EOCP) and which ended in December 2007.

In providing for the CCSS and the previous EOCP support scheme, Government childcare policy has recognised the need to target additional supports towards disadvantaged families in addition to the main supports which are made available to parents to assist them with their childcare costs, that is Child Benefit and the Early Childcare Supplement. The latter payment is the responsibility of my Office and, it alone is expected to amount to expenditure of over €500m in 2008. These payments are universal and benefit all parents, regardless of their income, labour market status or the type of childcare they choose.

The Community Childcare Subvention Scheme has an allocation of €154.2 million over 2008-2010 and will continue to support and ensure the sustainability of community-based childcare services which provide reduced childcare fees for disadvantaged parents. Data available from the Department of Social and Family Affairs would suggest that this is, proportionately, of greater potential benefit in rural areas, where incomes are lower and more families have entitlement to social welfare benefits. Community-based childcare services will qualify for grant aid on the basis of the level of service they provide and the profile of the parents benefiting from their service. The parent profile of each service, and the amount of subvention it will receive, are determined on the basis of completed parent declaration forms which they return as part of the application process. The subvention received by services is, in turn, reflected in a tiered fee system under which reduced fees are charged to parents who qualify as disadvantaged under the scheme. As the parent declaration forms are completed on an annual basis, the level of funding which is approved for each service is established on an annual basis.

Transitional arrangements have been put in place to facilitate services which were funded under the previous EOCP support scheme to adjust to the new arrangements. As a result, these services will receive not less than 95% of their previous level of funding in 2008. The CCSS also recognises that in some cases, particularly in rural areas or on the islands, community childcare services may operate with a small or fluctuating number of children, in which case a minimum annual grant level of €20,000 can be awarded.

The CCSS provides an effective framework for the continued targeting of additional resources towards disadvantaged parents and their children while continuing to support community-based childcare services generally and, I am satisfied that it will also be effective in delivering the NCIP objectives of supporting families to break the cycle of poverty and disadvantage. It will also provide a framework which can accommodate any future childcare related initiatives which may be introduced. The scheme is responsive to the level of service provided as well as the degree of parental disadvantage and the ceiling for funding which existed under the previous scheme has been removed. Account is also taken of all of the operational costs of the service rather than staffing costs alone. The changes which have been introduced will ensure that the most affordable childcare is available to families according to their means. Put simply, the tiered fee structure is the most effective way of ensuring that the considerable and ongoing Government support for the community childcare sector, will be targeted at those who need it most.

I am also pleased to advise the Deputy that the Childcare Directorate of my Office has begun notifying services of their individual grant levels for July-December 2008 and that the total amount of grant assistance under the new Scheme will be significantly higher than was the case under the previous scheme. I am confident that the Community Childcare Subvention Scheme is a fair and equitable way of supporting community childcare operators in the provision of an affordable and high quality service to parents.