Bernard Durkan (Kildare North, Fine Gael)
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250. To ask the Minister for Children, Equality, Disability, Integration and Youth the extent to which it is expected to provide extra funding for early years education to include all the required facilities including teachers, buildings and adequate staff payment; and if he will make a statement on the matter. [44317/21]

Roderic O'Gorman (Dublin West, Green Party)
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A key priority for me as Minister for Children, Equality, Disability, Integration and Youth is to improve affordability, accessibility and quality of Early Learning and Childcare (ELC).

Historically, there have been low levels of investment in ELC in Ireland. Over the past five years however, investment has increased by some 141% and currently stands at €638 million per year.  This increase has funded a second year of the universal Early Childhood Care and Education (ECCE) pre-school programme, along with the introduction of the Access and Inclusion Model, and enabled the introduction of the National Childcare Scheme (NCS). Funding delivered under the ELC Annual Capital Programme has also enabled a 60% increase in the number of places available nationally.

First 5: A Whole-of Government Strategy for Babies, Young Children and their Families, published in 2018, commits to at least doubling investment in ELC by 2028.

A key vehicle to ensure that such significant investment delivers for children, families and the State will be a new funding model. An Expert Group is leading on this work, which will include the development of appropriate mechanisms to fund services in order to improve affordability, quality and sustainability, and address issues such as staff pay and controls on fees paid by parents.

The Expert Group has undertaken extensive research and consultation to date, and I expect to receive a report of their recommendations in November 2021.

Separately, work is being progressed to develop a capital investment plan to deliver large scale capital investment under the National Development Plan with the aim of ensuring demand for high-quality ELC meets supply.

Ivana Bacik (Dublin Bay South, Labour)
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251. To ask the Minister for Children, Equality, Disability, Integration and Youth if he has read a recent report (details supplied) on working conditions and staffing in the early years sector; and if he will make a statement on the matter. [44346/21]

Roderic O'Gorman (Dublin West, Green Party)
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In July I met with some of those involved in writing the report, and I welcome the report's findings and proposals.

On working conditions and staffing, the report highlights the low wages of those who work in early learning and care (ELC) and school-age childcare (SAC) services. I firmly believe that their level of pay does not reflect the value of the work practitioners do for children, for families and for the wider society and economy. It also contributes to challenges of recruitment and retention of staff, which are key to the consistency of care provided to children, as the report notes.

The State cannot determine wages in the sector as it is not the employer. However, I am committed to doing what is in my power to improve wages and working conditions. That is why last December I began a process to examine the possibility of regulating pay and conditions in the sector and the suitability of a Joint Labour Committee (JLC). In agreement with IBEC/Childhood Services Ireland, and SIPTU, I appointed Dr Kevin Duffy, former Chair of the Labour Court, to be the independent chair of this process.

On foot of Dr Duffy’s report, on 11 March I wrote to the Minister of State for Business, Employment and Retail, recommending the establishment of a JLC for the sector.

In line with the provisions of the Industrial Relations Acts, the Labour Court recommended establishment of a JLC, and Minister English has now accepted the Labour Court’s recommendations. The Establishment Order came into effect at the beginning of July. The JLC will provide an opportunity for unions and employer representatives to work together to determine wages and working conditions for ELC and SAC.

The report also highlights issues of affordability and of the level of public investment in the sector. First 5, the whole-of-Government strategy for babies, young children and their families, commits to at least doubling investment in ELC and SAC in the decade to 2028. A key vehicle to ensure that such significant additional investment delivers for children, families and the State will be a new funding model. The new funding model will be the framework for additional investment in services in return for clear evidence of quality and affordability to ensure effective use of public funding.

An Expert Group has been leading the work on developing this new funding model since 2019. The Group is independently chaired and includes national and international experts in ELC and SAC systems, funding, quality, economics, and relevant policy experts from the Government Departments who will be involved in implementing the new funding model. They have met eighteen times to date and it is expected that their report will be submitted in November 2021. It is anticipated that the Expert Group’s work will inform the Budget 2022 process and my officials are already engaged in this.

ELC and SAC services are private businesses and are free to set their own policies regarding the charging of fees and contract conditions. First 5 sets out, as part of the reform of the funding model, the development of an appropriate mechanism to control fees charged to parents in return for increased State investment in affordability, quality and sustainability. As set out in the Terms of Reference for the Expert Group, an essential and top priority for this Group will be to make recommendations for a mechanism to control fee rates for different types of provision for ELC/SAC. The Programme for Government sets out a commitment to examine the approach of other European countries to set a cap on parental fees, irrespective of income.

The research partner for the funding model project, Frontier Economics, has produced eight working papers, with three that directly address affordability issues including international comparisons of fees and public investment, approaches to funding the ELC sector, and mechanisms to control fees charged to parents. Further information on the work of the Expert Group and documentation related to the process is available at www.first5fundingmodel.ie.