Pearse Doherty (Donegal, Sinn Fein)
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609. To ask the Minister for Children and Youth Affairs the changes that will be made to present funding mechanisms for allocations to preschool providers, including under the early childhood care and education programme; if her attention has been drawn to the increasing financial difficulties which many preschool providers and those employed in the sector are experiencing in order to provide preschool education; and if she will make a statement on the matter. [28191/16]

Katherine Zappone (Dublin South West, Independent)
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From the beginning of the 2016/2017 Programme year, the processing of payments for ECCE is being managed by Pobal. The Department is mindful that service providers need to manage cash flow and, therefore, the ECCE payment schedule was posted on the Programme Implementation Platform (PIP) on 1st September 2016. Providers can now also check payments on PIP for themselves.

The Department is conscious of the administration and eligibility changes for the childcare sector this year, and so is keen to minimise any further change from a provider's perspective as a result of this transfer of payments to Pobal; by retaining the status quo, with the exception that all payment queries will now be dealt with by Pobal vis their online support.

It is important to stress that the funding provided for the delivery of childcare programmes is understood by the Department to include the whole cost of delivering these programmes.

The Department accepts that the sector is under cost pressure, and will make submissions as part of the estimates process aimed at securing increased capitation for the sector. This could then be used to deliver CPD; to fund non-contact time, etc.

The Programme for Government commits to conducting and publishing an independent review of the cost of providing quality childcare. This commitment aligns closely with work on the design and development of a new Single Affordable Childcare Scheme and is currently being progressed in that context.

Department officials are reviewing previous published research and analysis on the cost of childcare provision, are assessing available data sources and are scoping the precise requirements for the independent review. It is suggested that the review would have to consider (1) the total average cost of quality childcare provision, (2) variation in cost and the reasons for same, (3) the link between cost and quality, (4) the cost of providing childcare services in disadvantaged communities and (5) the likely impact of future cost pressures, including the ongoing professionalisation of the sector.

It is envisaged that the Department will tender for independent expertise to conduct the review in the autumn with a view to ensuring that the review is commenced later this year.