Brian O'Shea (Waterford, Labour)
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Question 8: To ask the Minister for Health and Children his views on the proposals to protect the most vulnerable citizens here as outlined in correspondence (details supplied). [14810/09]

Barry Andrews (Dún Laoghaire, Fianna Fail)
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As the Deputy is aware, I have responsibility for the National Childcare Investment Programme (NCIP) 2006 -2010, under which the Community Childcare Subvention Scheme is implemented.

Under the previous childcare support scheme, the EU/Exchequer co-funded Equal Opportunities Childcare Programme (EOCP) 2000 -2006, community-based, not for profit childcare providers with a strong focus on disadvantage were awarded grant aid towards their staffing costs to allow them to charge reduced fees to disadvantaged parents. This arrangement was largely self-reported. As a result, the key objective of the funding (to enable participating services to charge lower fees to disadvantaged and low income parents) was not, in many cases being realised, with many groups charging a flat rate, regardless of parental circumstances.

Under the Community Childcare Subvention Scheme (CCSS), funding is adjusted on an annual basis, and takes account of changes in parental profiles as well as changes in the level of service being provided. In addition, services may apply for a mid-year review of their funding, if they believe that they would benefit from additional funding as a result of catering for additional numbers of parents who qualify for subvention. It should also be noted that the mid-year review is optional and that services with fewer qualifying parents are not required to seek a reduction in their grant level. I am satisfied that the current arrangements are satisfactory, and provide for much greater flexibility than was the case under the EOCP, which allocated a set amount of funding for a period of three years thus not providing for any changes in the profile of the parents availing of the service during this period.

The CCSS is based on clear and transparent criteria which measure the actual level of service provision as well as the level of disadvantage of the parents availing of the participating service. Funding is provided to each service on this basis and, because the grant is based on subvention rates for qualifying parents, the funding must be used for the purpose for which it is provided. The CCSS also assists services in ensuring that they operate on the basis of a sustainable business model based on a fee structure which is appropriate to their actual operating costs.

It should be noted that funding provided under the previous EOCP scheme amounted to €37 million in 2007. Funding provided under the CCSS amounted to €52m in 2008, and is expected to increase to €56m in 2009. The September 2008 service returns indicated that there had been a significant increase in the number of children attending services, not just in the disadvantaged cohort, but also among middle and upper-income families.

In relation to the collection of certain data (including the Personal Public Service Number) in respect of parents using the participating services, this data is essential in order to confirm the profile of each qualifying parent and to ensure that the service receives the appropriate subvention to which they are entitled. All such data is used in accordance with the requirements of the Data Protection Acts.

The Deputy will be aware of the announcement in yesterday's Budget speech of the introduction of a free pre-school year for eligible children from January next. I very much welcome this important investment in our children's futures as a mark of this Government's ongoing commitment to children. The provision of a year's free pre-school will promote equality of opportunity at the most important developmental stage of children's lives. The development will also help to sustain thousands of jobs in the childcare sector.