Dan Neville (Limerick West, Fine Gael)
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Question 177: To ask the Minister for Health and Children the position regarding a crèche (details supplied) in County Limerick. [2621/09]

Barry Andrews (Dún Laoghaire, Fianna Fail)
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The Community Childcare Subvention Scheme (CCSS) was introduced by my Office in January 2008, under the National Childcare Investment Programme 2006 -2010 (NCIP). The purpose of the scheme is to subsidise the cost of childcare for disadvantaged and low paid parents in the not for profit childcare sector.

I understand that the service in question was approved capital grants totalling €1.4 million. On the commencement of their service in 2008 they were approved €74,750 for a year's funding under the CCSS as a start up contribution towards staffing costs for childcare workers working directly with children. The Group has been informed that their level of subvention under the CCSS for 2009 is €40,898 based on their service return submitted last year which outlined their level of service, and the level of disadvantage among the families using the service. This return identified only 25% of parents qualifying as disadvantaged or in low paid employment, compared with the national average in the Scheme which generally averages around 40% of parents.

The funding awarded will allow the service reduce fees by €100 per week for disadvantaged parents, by €70 per week for parents on FIS, and by €45 per week for working families holding either a GP Visit Card or a Medical Card. Middle and upper income parents will pay the cost price, which is significantly reduced by virtue of the €1.4 million capital grant the Group has been awarded, thereby removing rental costs for the service. The projection of 2009 costs provided by the Group suggest that this cost price, at €140 per week, is some 20% lower than the national average price for childcare with the result that all families availing of this service will benefit from quality childcare at reduced rates.