I welcome the opportunity to debate the important issue of child care in the Seanad today. Last week's report from the expert working group has encouraged further the importance of debating the issue of child care in this country.
Compared to other EU countries the provision of child care services in Ireland is limited. The report of the expert working group on child care, which sets out proposals for a national child care strategy in respect of child care services to parents which necessarily involves third parties, was launched on 3 February 1999 by the Minister for Justice, Equality and Law Reform, Deputy O'Donoghue. This comprehensive report is the result of 18 months deliberation by the members of the group established by the Government under a commitment in Partnership 2000 in July 1997.
The expert working group believes "the lack of provision of quality child care has reached crisis level. Many services have long waiting lists and parents have difficulty accessing information on what is available". The interaction of the increase in the number of women with children choosing to combine work and family life with the decrease in the availability of child care places has caused this crisis. The crisis is further exacerbated in that with the improvements in the quality of child care, the price of child care is increasing. As a result, many women who would like to combine work and family life cannot afford to work. Only those in the higher income groups can afford to do so.
The members of the expert working group were charged with the challenging task of devising a national child care framework for the development of such facilities in Ireland and the terms of reference were directed by the Partnership 2000 agreement. As stated by the Partnership 2000 agreement, "child care is clearly an important issue in promoting equality for women and especially in promoting equal opportunities in employment".
However the child care debate is not only about equal opportunities in the workplace, but also about equality of access to affordable quality child care by parents who choose to avail of such services, whether they are working inside or outside the home, and about the needs of urban disadvantaged and rural communities. It is also about the nature of the child care sector and the pay, conditions and qualifications of child care workers. It is about the need to develop a national child care strategy which adopts a child centred approach to ensure our children have access to quality services.
The expert working group comprised representatives of the relevant Departments, statutory bodies, non-governmental organisations, child care providers, parents and individuals who had expertise and interest in the area of child care. My Department chaired the group of over 75 members which, although large in size, provided the collective experience and expertise necessary to devise a cohesive national strategy.
The members approached the task in true partnership spirit. They agreed a practical working process which enabled them to focus on the issue at stake. These included financial and employment implications, registration, training and employment of child care workers, resourcing and sustaining child care in both urban disadvantaged and rural areas, equality of access and participation, the needs and rights of children, early childhood education and regulations and standards.
As the report points out, the group had to address a diverse range of issues including the needs of children, the problem of diminishing child care supply, affordability of child care, regulation of standards, the numbers of child minders in the informal economy and, in particular, the problems faced by urban disadvantaged and rural areas.
The expert working group was faced with terms of reference which were wide ranging and multi-faceted. The terms of reference were not directed at parents who choose to care for their own children. The term "child care" for the purpose of the expert working group referred to services provided to parents for the care of their children and included a range of full day care and sessional services. The focus was on access to such services by children aged 0 to 12. It is important to note the members of the expert working group acknowledged the role of parents who choose to care for their own children. However, it considered this was a separate policy objective requiring a different policy solution.
According to employment statistics, the majority of new jobs created by the Celtic tiger economy are taken up by women. The study on the economics of child care in Ireland conducted by Goodbody Economic Consultants on behalf of the expert working group, provides interesting statistics, analyses and predictions for future trends in women's participation in the labour market, and hence increased demand for child care places. However this coincides with a diminishing supply of child care places as child care workers and child minders choose to work in the alternative employment available in the current thriving economic climate. Added to this is the increasing cost of providing child care services that meet the minimum standards directed by the Child Care (Pre-School Services) Regulations, 1996.
It is estimated there are 30,000 child minders providing child care services in Ireland. A large proportion of them are operating in the informal economy. They are providing a valuable service but by operating in the informal economy they lose out on the status and benefits associated with employment in the formal economy.
Employers are concerned about the skills and labour shortages they are experiencing due to the lack of accessible and affordable child care for employees. They do not want to lose highly skilled and trained workers. Likewise, many employees are faced with the challenges of combining work and family life.
In addition to the problem of the shortage of child care places is the issue of affordability for parents. Quality child care costs money. For families in disadvantaged communities, the absence of affordable child care prevents parents from accessing employment, training and education opportunities. Child care has an important role in combating social exclusion, particularly within families experiencing poverty and disadvantage.
Since 1994, my Department has provided funding for the development of child care facilities in disadvantaged areas to facilitate mothers, in particular, to access employment, education and training. In 1998, we introduced the equal opportunities child care programme which provides nationwide funding under initiatives aimed at improving the quality and availability of child care in Ireland from an equal opportunities perspective with an emphasis on areas experiencing disadvantage. The total budget for the programme for 1998 and 1999 is approximately £6 million, which includes funding from the EU.
The programme operates through three inter-dependent funding initiatives. These include the capital infrastructure initiative, which provides funding to community projects in disadvantaged areas to establish or up-grade facilities; the community support initiative, which is aimed at 25 community child care projects throughout the country, with a focus on equal opportunities and the disadvantaged. Each of these projects is receiving funding over two years to meet the expenditure required for two full-time senior child care posts. Third, there is the employer demonstration initiative which is led by IBEC. This encourages businesses to provide child care facilities for their employees. We are also developing a database on child care services with the help of EU funding. This will assist the co-ordination and planning of child care facilities. The database will provide a much needed source of information for parents seeking child care provisions in the future.
It is important to note that child care is not just availed of by working parents. It is estimated that at least 16 per cent of services are availed of by families with a parent working in the home, that is, in the form of pre-school and play group services. The changing make-up of families and society and decrease of socialisation opportunities have increased demand for this type of service. Quality child care benefits all children and can, as the export working group report highlights, improve opportunities in later life for children from disadvantaged areas in particular.
There are particular difficulties in rural areas for accessing child care services due to isolation and transport problems. Children have a right to equal access to child care services. Our children will make up the society of the future, so investment in quality child care now will be rewarded in the long-term. The expert working group on child care has recommended a seven year integrated child care strategy which provides for access to child care services for all families regardless of their socio-economic status. The integrated package of supports proposed is set out in a total of 27 recommendations targeted at issues including quality and standard of services, the supply and demand side of child care and the co-ordination of services.
On the supply side, the working group has recommended supports in the form of capital grants, relief for providers, tax allowances for child minders, grants for the employment of new child care workers, funding for local level measures in relation to the development of after-school initiatives and child care networks and improvement of local authority planning guidelines.
On the demand side, the group has recommended supports in the form of child care subsidies for low income families accessing education and training, increased income limits for the family income supplement payment where parents incur child care expenses, increased income ceiling for the one-parent family payment where parents incur child care expenses, personal tax relief for child care expenses and removal of treatment of child care as benefit-in-kind. The group also recommends the establishment of local planning and national co-ordination mechanisms to deliver child care policies and the development of registration systems for both facilities and child care personnel.
Some costing figures are available for the proposals in the report of the expert working group on child care. For example, it is estimated that if tax relief was provided in relation to receipted child care expenditure for children aged naught to 12 of taxpaying parents, the cost would be approximately £30 million per annum. This is based on services availed of in the formal economy and on the estimated qualification for the relief which was calculated by referring to the trend in the use of child care services referred to in the ESRI survey on child care arrangements 1997, while taking into account the number of children of taxpaying parents under 12 years of age on 6 April this year. However, as the report indicates, if all child care was in the formal economy, the cost of tax relief would be in the region of £66 million per annum. The expert working group also costed the child benefit payment as a possible support option. The report indicates that to make a meaningful contribution to parents' weekly child care costs would require at least an additional £20 per week, per child in child benefit. If this was applied to all children aged naught to 12 years currently in receipt of child benefit, the annual cost to the Exchequer is estimated to be in the region of £728 million.
The study on the economics of child care was conducted by Goodbody Economic Consultants on behalf of the expert working group on child care. It provides estimated costings for some of the other proposals. However, many of the proposals have not yet been specifically costed. In this year's budget the Government announced the introduction of capital allowances for expenditure on child care facilities and that free or subsidised child care facilities provided by employers would no longer be subject to treatment as benefit-in-kind for tax purposes in the hands of employees.
It is clear that child care is a complex issue and does not lend itself to quick and easy solutions. Two other important reports were published recently which contain proposals to address child care. These are the report of the Commission on the Family and the report of the Forum for Early Childhood Education. All three reports provide a wealth of information and research findings. They each contain different proposals on various aspects of child care and address different issues. For example, in contrast to the report of the expert working group on child care, the focus of the child care recommendations of the report of the Commission on the Family and the report of the Forum for Early Childhood Education is on the naught to six year olds only.
The costs in the various reports need to be treated with caution because all the recommendations have not been costed. Those which have been costed have been based on certain assumptions and on different age groups, and the data on which they are based may not be up to date given the rapid changes in the labour market. The Government has decided to establish an interdepartmental committee, comprising representatives of the relevant Government Departments. This committee will be chaired by the Department of Justice, Equality and Law Reform and will be required to evaluate, cost and prioritise the child care proposals in all three reports, together with the relevant proposals in An Action Programme for the Millennium, and to make recommendations to the Government within six months.
A substantial amount of work must be done on costings by that committee, as the most up-to-date data possible will be required and the interaction of various recommendations on one another will have to be assessed. For example, if some allowance were given to women in the home for child care, would the demand for child care outside the home be less than otherwise envisaged? Conversely, if improved child care were made available outside the home, would more mothers go out to work? Costings in respect of the various options within recommendations will have to be produced. For example, we will need to cost measures whether they are targeted at children under 12 years of age or limited to children under five years, or, alternatively, if there is a phasing arrangement. Accurate costing, which will enable recommendations to be evaluated on a like-for-like costing basis, are needed.
The interdepartmental committee has a very substantial and necessary task to do, and the setting up of this committee so quickly after the finalisation of the report of the expert working group on child care, with a specific period of six months to carry out its task, is an indication of the importance the Government attaches to child care issues. I understand the committee will hold its first meeting on Monday, 15 February. I wish it well.
I am grateful for the time, effort, energy and commitment given by members of the expert working group on child care. They have given us an in-depth and comprehensive report which provides a very good base on which to build a national child care strategy. We have been fortunate to be able to avail of the expertise and knowledge of the experts and practitioners and, indeed, the parents who came to the table with their own views and beliefs but were able to accept the views of others. The result of their work is a consensus report which is a remarkable achievement for such a large group of individuals. I look forward to hearing the views of Members of the Seanad.