Joe McHugh (Donegal North East, Fine Gael)
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Question 172: To ask the Minister for Health and Children if she will explain the changes which will take place in regard to the level of funding of child care programmes and the NCIP after June 2008 with a detailed analysis for each project in County Donegal; and if she will make a statement on the matter. [16204/08]

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) is being implemented.

The Community Childcare Subvention Scheme was introduced on 1st January 2008 with an allocation of €154.2 million over 3 years. The Scheme continues to support community-based childcare services to provide reduced childcare fees for disadvantaged parents, complementing the universal supports of Child Benefit and the Early Childcare Supplement in place for all parents. Community childcare services 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 receives, 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 reduced fees for parents who qualify as disadvantaged under the scheme.

Transitional arrangements have been put in place to facilitate community services which were funded under the previous scheme to adjust to the new arrangements, including making any adjustments necessary to their fee structures. Under these arrangements, existing grant recipients continued to receive grant support during January/June 2008 at the same level as in 2007. From July 2008, the new level of grant funding for these services will be based on the information they have returned to my Office. Services which benefit from an increased level of funding under the CCSS will receive the increased amount from 1st July 2008. Where the new arrangements would result in a reduction in funding for a particular service, that service will continue to receive 90% of its previous level of grant aid during July/December 2008. Should the service continue to qualify for a reduced level of funding in 2009 and 2010, it will continue to receive 85% of its previous level of grant aid in 2009 and 75% of its previous level of grant aid in 2010.

I am also pleased to advise the Deputy that the Childcare Directorate of my Office is in the course of notifying services of their individual grant levels for July-December 2008, including those in Co. Donegal, and that it is anticipated that this process will be completed early next month. 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, based on their means.