As the Deputy is no doubt aware, a capitals grant scheme for self-employed private providers and community based not for profit groups is part of the Government child care funding initiatives administered under my Department's equal opportunities child care programme, 2000-06. EU and Exchequer funding totalling £344 million has been allocated to my Department over the course of the national development plan between 2000 and 2006 to improve child care provision and quality throughout the country. The objectives of this funding are to increase the availability of child care places, to improve the quality of child care provision and to ensure the co-ordination of child care service provision on a local and national basis. This funding has an equal opportunities and social inclusion perspective and focuses on provision of child care to allow parents, particularly women, to avail of training, education or employment.
There is no anomaly with regard to the use of a capital grant for the purpose of purchasing a building that has not previously been used for child care. Under Rule No. 6 of the Council Regulation laying down detailed rules as regards eligibility of expenditure of operations co-financed by the Structural Funds, the cost of real estate is eligible for co-financing by the Structural Funds under certain conditions if there is a direct link between the purchase of the building and the objectives of the operation. Funding may therefore be allocated for this purpose, once it has been established to the satisfaction of the committee dealing with the appraisal of the equal opportunities childcare programme that the building in question will be used for childcare and that it is appropriate for use as a child care service. This will be subject to compliance with regulations and planning permission where necessary. A capital grant may also be used for the building, renovation or upgrading of a child care facility and for the purchase of child care equipment.