Seán Sherlock (Cork East, Labour)
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15. To ask the Minister for Children, Equality, Disability, Integration and Youth the cost of moving the entire childcare system into a public State model operated by the Department of Education, segmented by staff costs, capital costs and provider acquisition costs. [38911/24]

Roderic O'Gorman (Dublin West, Green Party)
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My Department has not undertaken a detailed analysis of the proposal outlined. However, I can provide some information on relevant issues for consideration.

My Department estimates that the annual wage bill for the sector is €1.041 billion. This includes employers' costs - such as PRSI & holiday pay - and wages for ancillary staff. The Independent Review of Costs commissioned by my Department estimates that payroll comprises 68% of a service's costs. Based on this, the total operating costs for the sector are estimated at €1.53 billion. This includes all staff and non-staff costs, including capital.

These figures are based on the present operation of the sector, including in respect of the number and type of places being delivered. In the event of any change of model as indicated by the question, the costing basis may also change.

In considering whether some element of public provision should be introduced, issues relating to staff employment, pay and conditions; ownership and management of buildings; operating models; governance arrangements; service offering; fees for parents; and the overall funding model will need to be examined. Decisions on each of these issues would materially influence the costing of any possible proposals.

In relation to capital, on average, the Review of Costs found that 12% of a services' annual costs are listed as premises costs. How this relates to capital costs will vary very significantly from service to service. For example, of the services who own their building, 42% stated that it was owned without a mortgage. Some mortgages are domestic, while others are commercial . Some services do not have formal leases. Therefore, capital costs will range from zero for some providers to a substantial portion of others' costs.

My Department has not undertaken any analysis of provider acquisition costs.