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Dáil Éireann debate -
Tuesday, 22 Oct 2002

Vol. 555 No. 5

Written Answers. - Child Care Services.

Richard Bruton

Question:

353 Mr. R. Bruton asked the Minister for Justice, Equality and Law Reform the number of child care places opened with State assistance in the past three years; and his estimate of the total number of places available in each of those three years. [19009/02]

The Deputy will appreciate that the child care sector is disparate, making the collection of accurate quality data both time consuming and difficult. Nevertheless, ADM Limited conducted a census of child care services on behalf of my Department in 1999-2000 and it continuously monitors the impact of the equal opportunities childcare programme, 2000-06.

An estimate based on the results of the census carried out in 1999-2000 suggests that there were 70,000 child care places in group facilities, both private and community based, in Ireland at that time. This does not include childminding facilities. The Deputy will be aware that considerable investment amounting to €436.7 million is taking place through the equal opportunities childcare programme 2000-06, inter alia, to increase the number of child care places. The programme aims to increase the supply of group child care places by 50% by programme end.

As the table below shows, I expect that the completion of the projects for which I have already approved grant support of some €132.6 million will create 18,354 new child care places and support 20,556 existing child care places when completed.

Year of funding approval

Capital assistance committed

Staffing assistance committed

New places to be created with this funding

Existing places to be supported with this funding

€m

€m

2000

9.8

19.6

3,530

4,787

2001

24.8

33.6

8,547

10,318

2002

30.5

14.4

6,277

5,451

At the end of June 2002, I estimate that 12,700 of those new places were already operational – an annual breakdown of these data is not readily available. As the Deputy will be aware, in addition to the grants available under the EOCP, State assistance is also provided in the form of capital allowances for investors involved in the development of child care facilities through venture capital. The number of child care places developed in this way through capital allowances is not available in this Department.

Richard Bruton

Question:

354 Mr. R. Bruton asked the Minister for Justice, Equality and Law Reform the expenditure on child care provision in each of the past three years; his estimate of the outturn spend in 2002; the provision which has been included in the multi-annual budgets published by the Minister for Finance in respect of child care in 2003 and 2004 and in respect of the years 1999 to 2002; and the way in which the expenditure outturn compared to the original estimate. [19010/02]

The information requested by the Deputy in relation to expenditure on the provision of child care in the years stated is given in the following table:

Year

Programme

Estimate (€m)

Out-turn (€m)

1999

EOCP (1998-1999)

5.036

6.337

2000

EOCP (2000 – 2006)

26.03

11.704

2001

EOCP (2000 – 2006)

88.521

30.338

2002

EOCP (2000 – 2006)

58.41

53.0 - 55.0(projected)

With regard to expenditure on child care for the year 1999, I would like to explain to the Deputy that this particular expenditure related to the first two years of the equal opportunities childcare programme as distinct from the current equal opportunities childcare programme, 2000-06, which forms part of the national development plan. The outturn for the year 1999 was €6.337 million, compared with an estimate of €5.036 million due to the allocation of funding for the development of child care following the mid-term review of the Community Support Framework, 1994-1999.
As regards funding for 2003 and 2004, the allocations for those years have not yet been finalised. However, I will comment to the extent that the estimated expenditure for child care in 2003 and 2004 will be realistic, based on the experience of the programme to date and taking into account contractual commitments and EU rules for co-financed expenditure.
As the Deputy is aware, a significant part of the funding under my Department's equal opportunities childcare programme, EOCP, 2000-06, arises from commitments made as part of the national development plan. This funding is part-financed by the European Union Structural Funds. The outturn of expenditure for the equal opportunities childcare programme, to date, reflects the initial stages of the current seven year programme and, as is the case with all new expenditure programmes implemented by Government and particularly large programmes such as the equal opportunities childcare programme, my Department estimated the sum of money which, on the basis of various assumptions, it believed would be spent in the initial years of the programme. These assumptions involved an assessment of the likely level of demand from the public for child care grants as well as assessments in relation to various other matters that were extremely difficult to judge, such as the speed with which planning permission could be secured by individual applicants, the capacity of the grantees to source contractors and so on.
In the event, the estimated demand and estimated expenditure for the first two years of the programme was well above the actual demand and expenditure experience. In 2000, the actual outturn of total expenditure on child care, current and capital, under the equal opportunities childcare programme was €11.704 million, compared with an estimate of €26.03 million for that year.
In 2001 my Department had originally estimated that expenditure on the development of child care services within its remit in 2001 would be €56.73 million. However, during that year, the Cabinet committee on social inclusion decided that the funding available for child care services in a number of Departments should be consolidated and, as a result of this decision, funding allocated to other Departments for 2001 and beyond was transferred to my Department. In addition, in October 2000, as a result of negotiations with the social partners, the Government decided to increase the overall funding for child care by €50.79 million. As a result of these decisions, the total allocation for the seven year child care strategy being implemented by my Department rose from €317 million to €437 million and consequently the Estimate for 2001 was revised upwards to €88.521 million. The child care sector was unable to absorb the additional funding within such a short time-frame, for the reasons already outlined above. The outturn for the equal opportunities childcare programme in 2001 was €30.338 million.
Given the benefit of the experiences gained in 2000 and 2001, my Department's estimate of the expenditure required for 2002 reflected, in as far as possible, the true impact of the many variables which will influence the level of demand for the programme. I have been informed that for 2002 the projected outturn for expenditure has been put between €53 million and €55 million, compared with the provision in my Department's budget Estimate of €58.4 million.
I am sure the Deputy will note from the above figures that expenditure on child care has increased significantly year on year as approved projects are completed and existing and future grant applications are approved and brought on stream. It is important to reiterate that all of the funding allocated to child care will be spent over the life of the equal opportunities childcare programme and that I am firmly committed to assisting in the development of a vibrant and high quality child care sector to meet the needs of parents and children.
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