Robert Troy (Longford-Westmeath, Fianna Fail)
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16. To ask the Minister for Children and Youth Affairs in view of the continuing pressures being voiced by the early childhood sector regarding threats to the financial sustainability of services, the plans in place to address the current sustainability crisis faced by the sector; if his Department has brought the issue of charging early childhood services commercial rates to the attention of the national Valuation Office as an immediate threat to the sustainability of services; and if he will make a statement on the matter. [43976/14]

James Reilly (Dublin North, Fine Gael)
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I am aware of and concerned by sustainability issues for early years services. Annual funding in the region of €260 million is provided to the childcare sector to support a number of childcare programmes that are implemented by this Department. These programmes include the Community Childcare Subvention programme, the Early Childhood Care and Education programme and a number of labour activation initiatives under the Training and Employment Childcare programmes. These programmes, and in particular the Early Childhood Care and Education programme, provide a guaranteed source of income to participating services and given that many parents would otherwise not be able to avail of pre-school care and education for their children, the funding has ensured that many childcare services, both commercial and community, have the resources to continue to operate.

Despite the budgetary situation that prevailed in recent years the Government has maintained the funding necessary to support the childcare programmes and has introduced new initiatives to meet the changing circumstances, particularly in regard to the improved employment opportunities in the economy. As funding becomes available, I would hope that the capitation rates for all programmes could be increased to provide further support.

Following concerns expressed by childcare providers throughout the country, the issue of commercial rates on pre-school services was raised with the previous Minister for the Environment, Community and Local Government and the concerns of childcare providers in relation to commercial rates were brought to the attention of officials in the Department of Public Expenditure and Reform. Officials from my Department recently met with the Department of Public Expenditure and Reform in the context of the Valuation Bill currently going through the Houses of the Oireachtas and discussed the issue of commercial rates on pre-school services. The Government has recently approved an amendment to the Bill to exempt not-for-profit childcare providers from rates.