Alan Shatter (Dublin South, Fine Gael)
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Question 449: To ask the Minister for Health and Children her plans to introduce amendments to the early childhood care and education scheme; if it is intended to address the many anomalies that arise under it which have been communicated to the Minister of State with responsibility for children and youth affairs; if she acknowledges that the fees payable under the scheme may reduce both the quality of care and the number of qualified staff in some crèches; and if she will make a statement on the matter. [33359/09]

Barry Andrews (Dún Laoghaire, Fianna Fail)
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As the Deputy will be aware, the new Early Childhood Care and Education (ECCE) scheme which provides a free Pre-School year to eligible children and which will be introduced in January 2010, was announced in the Supplementary Budget in April this year. Since the announcement of the scheme I have had a number of meetings with the National Voluntary Childcare Organisations, which represent the views of child care service providers throughout the country, and also with individual childcare providers. I have also listened carefully to the views of parents and where possible have made modifications to the scheme to address issues which have been raised.

In relation to the age range for eligibility which includes children aged between 3 years 3 months and 4 years 6 months at 1 September each year, it has been agreed to interpret the application of the age range as generously as possible to include children who are aged more than 3 years 2 months and less than 4 years 7 months on the 1 September. This will mean that children born on or between 2 February 2005 and 30 June 2006 will be eligible to enter the scheme in January 2010 and in September 2010, children born on or after 2 February 2006 or on or before 30 June 2007 will qualify, and so on in subsequent years.

The options available to pre-school services as to how they deliver the pre-school year was raised with my Office and has been responded to by allowing for a wider range of options. Full or part-time day care services can provide the pre-school year for 2 hours and 15 minutes per day, 5 days per week for 50 weeks (241 days) per year, in return for the capitation fee of €48.50 per week. In addition, they can also apply to provide the pre-school year for 3 hours and 45 minutes per day, 3 days per week for 50 weeks per year.

A play-school sessional service will, normally, provide the pre-school year for 3 hours per day, 5 days a week for 38 weeks (183 days) per year, in return for a capitation fee of €64.50 per week. However, where for good reason a sessional service is unable to operate over 5 days, it will be allowed to provide the pre-school year for 3 hours 30 minutes per day for 4 days per week over 41 weeks (157 days). Further flexibility is provided for in that, a full or part-time service may choose to provide a sessional service over 38 weeks of a year (or 2 sessional services each day) while a sessional service may choose to provide 2 hours 15 minutes per day over 50 weeks.

The issue of commercial rates on pre-school services was also raised. In July of this year the Valuation Office, which is responsible for implementing the Valuation Act 2001, clarified that the ECCE will result in certain services being considered exempt from commercial rates. Services covered by this exemption must be participating in the ECCE and solely and exclusively used for the provision of educational services which are available to the general public. In addition, the expenses incurred in providing the service must be defrayed wholly or mainly by the State. The legal position for services not covered by the exemption is unchanged and rateable status of community services will continue to be dealt with on a case by case basis on the grounds of charitable status as provided for under Schedule 4 Item 16 of the Valuation Act.

Some service providers expressed the view that the capitation of €64.50 (€2,450 p.a.) a week provided for under the scheme did not take into account the high level of qualification which some staff in the pre-school sector had attained. I am pleased to advise the Deputy that, in July of this year, sanction was received to add a higher capitation rate of €75 per week (€2,850 p.a.), for sessional services with highly qualified staff. To qualify for the higher capitation fee all Pre-School leaders must hold a level 7 or 8 qualification relating to childcare and have 3 years experience working in the sector, and all assistants must hold a relevant level 5 qualification.

The annual capitation fee of €2,450 (or €2,850 in the case of the higher rate) will be paid to participating services for each child enrolled and availing of the free pre-school provision. This is considered sufficient to accommodate the great majority of services. The scheme also allows participating services to charge parents for additional services which they provide, including additional hours and activities, provided these are offered on a clearly optional basis to parents. Mandatory charges are not permitted under the scheme. The ECCE introduces, for the first time, minimum requirements in relation to staff qualifications. Together with the Workforce Development Plan, which is due to be launched next year, I am satisfied that the ECCE scheme will support the improvement of quality care and the level of qualifications held by staff working in pre-school services.