James Reilly (Dublin North, Fine Gael)
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Question 157: To ask the Minister for Health and Children the transitional arrangements for the national child care investment programme; and if she will make a statement on the matter. [41214/09]

James Reilly (Dublin North, Fine Gael)
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Question 158: To ask the Minister for Health and Children the way funding is allocated under the national child care investment programme, including details on the conditions for bands A, B and C; the estimated cost for same in 2009; the numbers of persons included with each band; and if she will make a statement on the matter. [41215/09]

Barry Andrews (Dún Laoghaire, Fianna Fail)
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I propose to take Questions Nos. 157 and 158 together.

I have responsibility for the National Childcare Investment Programme 2006 — 2010 (NCIP) which includes the Community Childcare Subvention Scheme (CCSS) which support community childcare services to enable them to charge reduced childcare fees to disadvantaged and low-income working parents.

The CCSS replaced an earlier staffing grant scheme which was implemented under the EU co-funded Equal Opportunities Childcare Programme 2000 — 2006 (EOCP). The staffing grant scheme was also a targeted scheme with the objective of enabling community childcare providers to charge reduced fees to disadvantaged parents. In considering the format of a successor scheme to the EOCP staffing grant scheme, account was taken of the fact that many services participating in that scheme had not implemented a tiered fee structure as required, and that the level of funding provided to each childcare facility did not reflect its level of service provision or the profile of disadvantage amongst parents using the service. The CCSS takes account of these factors and uses clear and transparent criteria to measure disadvantage and low income. Funding is provided on these bases and, as the grant is based on subvention rates for qualifying parents, the funding must be used for the purpose for which it is provided.

To assist services to adjust to the new arrangements, the CCSS provides for transitional arrangements under which services have been guaranteed minimum funding levels based on their EOCP grant amount in 2007. In 2008, services received at least, 95% of their 2007 funding level. In 2009, they received at least 85% of their 2007 level. In 2010, the transitional rate will reduce to 75% of their 2007 level.

The funding provided under the CCSS allows services to reduce full week childcare fees by €100 for disadvantaged parents who are in receipt of social welfare payments — (Band A) , by €70 for low income parents in receipt of Family Income Supplement (FIS) or FAS or VEC childcare supports — (Band B), and by €45 for working parents who hold either a GP Visit Card or a Medical Card — (Band C). Parents who avail of childcare services for less than 5 days a week or for part-time or sessional childcare, benefit from pro-rata reductions.

The CCSS is expected to cost approximately €58 million in 2009. The number of parents benefiting from subvention is approximately 19,200 of which 14,100 qualify under Band A; 3,000 qualify under Band B and 2,100 qualify under Band C.