Seán Kyne (Galway West, Fine Gael)
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97. To ask the Minister for Children and Youth Affairs if childcare companies, particularly those in the community and voluntary sector, register a modest surplus at the end of the year on account of careful and effective spending on the State funding received will be permitted to retain and re-invest said moneys into facilities; and if she will provide assurances that the State grants for next year will not be reduced by reason of effective and efficient financial management. [53810/13]

Frances Fitzgerald (Dublin Mid West, Fine Gael)
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The Government has made a very significant commitment to maintaining the childcare support programmes implemented by my Department - the Early Childhood Care and Education (ECCE) programme, the Community Childcare Subvention (CCS) programme, the Childcare Education and Training Support (CETS) programme and the new After-school Childcare programme. The funding is provided by means of capitation payments

The CCS programme is confined to community not for profit childcare services and the funding provided must be used by the services to reduce the weekly fees charged to disadvantaged or low income families. Parents are required to meet the balance of the economic cost of the service provided, which can vary from service to service.. The economic cost would be expected to include an appropriate level of re-investment costs. Where a community service consistently hold a significant level of surplus funds at the end of each year, it would be expected to give consideration to reducing its fee structure.

The CETS and After-school programmes are provided by both community and commercial services and the funding provided must be used by the services to reduce the weekly fees charged to qualifying parents. The fee contributions which parents are required to make towards the childcare fees are capped with the income difference between the subsidy paid by my Department and the fee charged by the service being a matter for the service.

The ECCE programme is also provided by both community and commercial services and the funding provided is expected to cover the full cost of the service. As is the case with the CETS and After-school programmes, any income difference between the capitation paid by my Department and the cost to the service of providing the free Pre-School Year, is a matter for the service.