As the Deputy will be aware, over the past number of years the Government has considered carefully the whole area of child care It has been decided as a matter of policy that child benefit will be the main instrument through which support will be provided to parents with children. One of the main benefits from this approach is that, whereas tax relief would be of little or no benefit to those with low or no incomes, the provision of support for parents through the child benefit route means equality of treatment for all recipients.
The 2001 increase of over 50% in child benefit rates marked the first step in a programme through which an additional €1.27 billion will be invested directly in child benefit. In budget 2002, I announced further increases in child benefit rates marking the second step and in budget 2003, I announced an additional €105 million in a full year to increase child benefit further. From April 2003, child benefit rates have been increased by €8 per month for first and second children to €125.60 and by €10 per month for third and subsequent children bringing the new rate to €157.30.
In addition, the Government has in place a package of other expenditure measures to support child care needs. The supply of formal child care places throughout Ireland is currently being stimulated through a programme of investment under the National Development Plan 2000-2006. The equal opportunities programme is making capital grant assistance available with the aim of increasing the supply of quality child care places to address the child care needs of parents who wish to remain in or return to employment, education and training. The programme aims to increase by 50% the supply of child care places by end 2006. The total budget for the programme is €436.7 million and is funded by the Irish Government and the European Union. This funding and the recent increases in child benefit are a significant financial commitment and clearly show the Government's continuing support for the child care sector.