Dáil Éireann debate -
Wednesday, 10 Mar 1999

Vol. 502 No. 1

Written Answers. - Child Care Services.

Thomas P. Broughan

Question:

75 Mr. Broughan asked the Minister for Justice, Equality and Law Reform if he has satisfied himself with the operation of the employer demonstration child care initiative; the benefits gained from the initiative; the future plans, if any, he has for the initiative; and if he will make a statement on the matter. [7229/99]

Minister for Justice, Equality and Law Reform (Mr. O'Donoghue)

The employer demonstration initiative is one of the three elements of the equal opportunities child care programme, for which my Department has responsibility. The employer demonstration initiative, which is being led by IBEC, involves 21 companies, some forming a consortium with other companies and community projects in their locality, in developing child care facilities for their employees. The total budget available for the employer demonstration initiative over the two year period 1998-99 is £1 million from the EU, the Exchequer and employer sources.

In January of this year I attended a project network meeting which was arranged by Area Development Management Ltd. and IBEC, and was attended by all of the companies involved in this initiative. The main purpose of this meeting was to exchange information on projects and to learn from projects that are at a more advanced stage than others.

When they are in operation, the child care facilities that will be provided by these employers will be of economic benefit to businesses as well as being of benefit to employees. The problems being created by the shortage of skilled employees in the current economic climate are very real. Projected figures show that the total labour force is expected to grow to 1.9 million by 2011 with a continued increase in female participation. A substantial number of child care places, therefore, will be required. It is hoped that the benefits which the employers that are involved in this initiative will enjoy will be replicated by other employers in the future. The availability of suitable child care facilities also makes an important contribution to the family as a whole, when both parents are working, and assists in the reconciliation of work and family life.

My Department is chairing an interdepartmental committee the terms of reference of which are to evaluate, cost and prioritise the proposals in the report of the expert working group on child care, the child care proposals in the Action Programme for the Millennium, the report of the Commission on the Family and the report of the National Forum for Early Childhood Education and to make recommendations to Government within six months.

The budget also included measures to facilitate and encourage the supply of child care facilities by employers. The provision of certain child care facilities by employers on a free or subsidised basis will no longer be subject to income tax in the hands of employees as a benefit-in-kind. Capital allowances have been provided to allow for the write-off of capital expenditure incurred in connection with buildings or premises constructed or used by employers to provide child care facilities for their staff.