Thomas Pringle (Donegal, Independent)
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194. To ask the Minister for Children and Youth Affairs her views on whether the provision of child care needs to move away from the profit driven model currently in place, in view of the issue of low wages for workers in child care facilities, very high fees for parents using these facilities and the demand that will arise for child care places after future schemes are introduced; her plans to develop child care as a State-funded service provision into the future in view of the fact that her Department already funds an array of State schemes in private run facilities; and if she will make a statement on the matter. [32217/16]

Katherine Zappone (Dublin South West, Independent)
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Pobal's most recent profile of service providers in the childcare sector indicates that, at present, 39% of all childcare workers work for community providers underpinned by a not-for-profit business model. Of the remainder, a significant number operate as sole traders. As such, it is not the case that low wages in the sector are caused primarily by a drive for excessive profits. However a greater understanding of the current components of cost is required to develop appropriate policy in this regard. The Programme for Government commits to conducting and publishing an independent review of the cost of providing quality childcare in Ireland. This commitment aligns closely with work on the design and development of the new Single Affordable Childcare Scheme, which I announced in Budget 2017, and is currently being progressed in that context.

It is proposed that the review will 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.

Childcare providers set their own fees, and there is no current plan for the Government to control fees, which would be a major intrusion in the market and could, if not managed carefully and appropriately, create risks around the viability and quality of childcare provision. My Department is committed to developing quality, affordable childcare through state subsidised schemes such as ECCE and the Single Affordable Childcare Scheme, which will be introduced from September 2017, ensuring that a greater number of children will benefit from state funded childcare.