Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Question 332: To ask the Minister for Health and Children her views, in response to the funding difficulties that community child care groups are facing due to the changes introduced in the child care subvention scheme, on making additional supports available such as heating, electricity and rental assistance; and if she will make a statement on the matter. [15749/09]

Mary Harney (Dublin Mid West, Progressive Democrats)
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As the Deputy will be aware, I have responsibility for the National Childcare Investment Programme (NCIP) 2006-2010, under which the Community Childcare Subvention Scheme (CCSS) is being implemented.

Services participating in the CCSS receive annual funding on the basis of the number of qualifying parents recorded as using the service in a particular reference week, generally set in late September of each year. Services may apply mid-year to have their funding reviewed, where they believe they would benefit from additional funding as a result of having additional numbers of qualifying parents. In 2009, services have been advised that they should request a review by 26 March and that the reference week will be that ending on 10 April. Where a review results in an increased level of funding, this will be calculated with effect from 1 April.

The objective of both the previous support schemes under the Equal Opportunities Childcare Programme (EOCP), and the CCSS, has been to provide funding to community childcare services to enable them to charge reduced fees to disadvantaged and low income parents. Under the previous scheme, participating services were required to charge tiered fees based on ability to pay, however, many of them did not implement this requirement. Under the CCSS, specific subvention rates have been set with 3 categories of parents benefiting from subvented fee rates and parents who do not qualify for subvention paying the full economic cost of their childcare places(s). Neither scheme provides for core funding and to do so would be discriminatory vis a vis commercial childcare providers who cannot benefit from the scheme.

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. As there is no prospect of additional funding being provided to increase the current subvention rates an increase in the Band C subvention rate would require a reduction in either the Band A rate, the Band B rate or a combination of both.

To co-ordinate the provision of quality childcare training a new Workforce Development Plan is being developed by the Early Education Unit in my Office. This will have a positive impact on the career paths of childcare workers and should help retain personnel in the childcare sector. The recent Budget announcement of the introduction of a free pre-school year in early childhood care and education (ECCE) from January next will also help to sustain thousands of jobs in the childcare sector. The scheme will provide a capitation grant of over €2,400 to participating services.