Dáil Éireann debate -
Wednesday, 3 Oct 2001

Vol. 541 No. 2

Written Answers. - Child Care Costs.

Dick Spring

Question:

138 Mr. Spring asked the Minister for Justice, Equality and Law Reform if his attention has been drawn to the claim made by the Irish Congress of Trade Unions assistant general secretary that child care costs for working parents had more than doubled since 1998; the steps which are being taken to ensure the provision of adequate and affordable child care places; and if he will make a statement on the matter. [22029/01]

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

The Government identified child care as a priority area for investment in the National Development Plan, 2000-2006. In total, £344 million comprising EU and Exchequer funding has been allocated to my Department over the course of the National Development Plan, 2000-2006 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. The funding is targeted at services which offer daycare facilities and services for pre-school children and school going children out of school hours. The overall aims of the programme are to improve the quality of child care in Ireland, to maintain and increase the number of child care facilities and child care places and to ensure a co-ordinated approach to the delivery of child care services.

On 28 April 2000, I announced the availability of capital and staffing grants for community based/not-for-profit child care organisations and capital grants for small scale private child care providers catering for no more than 20 children to enable us to meet these objectives. In October 2000, I was pleased to announce that that capital grants are now available to private providers who cater for more than 20 children. Grants are also available for quality improvement projects such as local child care networks, child care training and innovative projects. Since the announcement of the availability of grants in April 2000, over £67 million in funding has been committed by my Department under the equal opportunities child care programme with over £55 million being allocated in the form of capital or staffing grants to child care services on the ground. Almost 21,700 child care places will be supported by the funding committed by my Department which includes the creation of over 9,400 new child care places.

In line with the recommendations of the expert working group on child care established under Partnership 2000, my Department commissioned a study on the economics of child care in Ireland, which was conducted by Goodbody Economic Consultants. This report was published in December 1998 and contains, to date, the most up to date information available in terms of,inter alia, the costs of child care services. My Department has, however, recently approved funding to the Irish Congress of Trade Unions to carry out research on the child care arrangements of union members. This research project is being undertaken from July 2001 to October 2001 and the report should be available before the end of 2001. The results of this survey will provide a more accurate up to date picture of the costs of child care arrangements today. The research will also provide information as to the type of child care services and facilities used by parents and the way in which parents manage their child care needs in both formal and informal ways.

As regards supports for parents, a very significant development in this regard is the improvements in the rate of child benefit. My colleague, the Minister for Finance, Deputy McCreevy, in Budget 2001 indicated that a core objective is to provide support which will offer real choice to parents and which will benefit all children. In 2001, payment rates increased by £25 per month for the first and second child to £67.50 and by £30 per month for third and subsequent children to £86 per month. Furthermore, the Minister announced that payment of these increases would be brought forward by three months to June rather than the September date which applied previously. These increases marked the first step in a three year programme which will see an additional £1 billion being invested in child related payments and will bring the child benefit rates to £117.50 and £146, respectively, by 2003, well beyond the PPF commitments. It is also worth noting that child benefit is recognised as the most effective way of combating child poverty and payments are made directly to the principal carer of the child.

The measures in place by my Department, as outlined above, together with the increase in child benefit rates announced in budget 2001, reaffirm the Government's commitment to keeping child care at the forefront of its social agenda.