Michael McCarthy (Cork South West, Labour)
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178. To ask the Minister for Children and Youth Affairs if she will consider, in consultation with the Department of Finance, the implementation of tax relief or tax credit options for reducing the costs of child care; her views on same; and if she will make a statement on the matter. [20512/14]

Frances Fitzgerald (Dublin Mid West, Fine Gael)
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I am aware of the relatively high cost of childcare in this country and of the difficulties that this presents, particularly where both parents are in employment outside of the home. To help address the issue, funding of €260 million is provided annually by my Department to support a number of targeted childcare support programmes that assist parents in accessing quality and affordable childcare.

For example, the Community Childcare Subvention (CCS) programme provides funding to community-based childcare services to enable them to provide childcare at reduced rates to parents in receipt of social welfare payments or parents in employment who are on low or relatively modest incomes. My Department also implements the Early Childhood Care and Education (ECCE) programme which provides one free pre-school year to all eligible children before they commence primary school.

Tax incentives for working parents who incur childcare costs were previously proposed, and the issue of tax allowances or credits was considered, prior to the introduction of the targeted childcare supports. A number of issues emerged at that time which did not favour the introduction of childcare tax relief. A review of the childcare support programmes is being undertaken by my Department this year with a view to identifying areas where they could be enhanced and improved to ensure the best use of the investment which is currently being made in this area. All proposals relating to childcare supports will be considered as part of this review.