Robert Troy (Longford-Westmeath, Fianna Fail)
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18. To ask the Minister for Children and Youth Affairs the assurances he will provide that services will be able to extend the provision offered under the early childhood care and education scheme, given the concern expressed by preschool services regarding their unsustainability under the current 38-week capitation system. [3208/16]

James Reilly (Dublin North, Fine Gael)
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Firstly, I would like to acknowledge the considerable support of the childcare sector and the flexibility of childcare providers and staff in ensuring that the range of childcare support programmes administered by my Department are implemented.

At present, the Early Childhood Care and Education Programme covers children who have reached the age of 3 years and 2 months by 1st September of the relevant year. From September 2016, I am expanding this Programme to allow children enrol in free preschool from the time they are 3 years of age and to remain there until they start primary school. As a result of this extension, the number of children benefiting from the Programme is expected to rise from around 67,000 to 127,000 in a given programme year, which represents an opportunity for the sector to increase income by 60% on average.

I decided to introduce this new measure from September 2016. As the increased demand for the Programme is not expected to peak until April 2017, this timeframe should allow preschool providers to make any necessary infrastructural or service changes and to put in place extra staff resources to accommodate the additional demand. I am satisfied that there is already additional capacity in the early years sector to cope with some of the increased demand.

I am also aware that every year a significant number of new preschool providers apply to participate in this Programme. This increased demand for, and additional investment in, free preschool provision should encourage a greater numbers of applicants, although clearly additional capacity will be required.

I am restoring capitation rates to pre-2012 levels from September 2016. This increase, which will bring capitation to as much as €2,850 per year for each eligible child, is a guaranteed source of income and a major support for preschool providers. This was particularly evident in the difficult economic climate that prevailed in recent years when many parents would not have been in a position to avail of preschool for their children. Additional capitation for preschool providers, announced as part of the suite of Government-funded supports for children with a disability accessing the ECCE Programme, is another measure that will assist in addressing issues of sustainability for preschool providers.

I met with senior representatives from the early years sector to discuss, among other issues, the measures that were announced as part of the Budget 2016 package. The meeting was positive and constructive, with all parties expressing commitment to work together on the issues of capacity and high quality preschool provision. My Department will be working closely with the early years sector to build capacity in time for the first intake in September 2016, and for subsequent increased availability in January and April 2017.