Jan O'Sullivan
Ceist:11 Ms O'Sullivan asked the Minister for Justice, Equality and Law Reform the reason for the cut from £61 million to £25 million in the capital allocation for child care; and if he will make a statement on the matter. [10995/01]
Other Questions. - Child Care Services.
Let me set the record straight in terms of my Department's capital allocation for child care to which the Deputy refers as there appears to be misinformation in the public domain.
My Department's total allocation for child care for 2001 is £69.716 million, of which £25.870 million relates to capital expenditure. The remaining £43.846 million is allocated to current expenditure such as staffing grants for community based/not-for-profit groups and quality improvement projects such as training programmes and supports for the national voluntary child care organisations.
My Department has been allocated £250 million for child care, both capital and current, under the National Development Plan, 2000 to 2006. This allocation has been supplemented by an Exchequer investment of £94 million, giving a total of £344 million to be expended by my Department to end 2006. This represents the most significant investment in child care by any Government in the history of the State. There has been no reduction in the overall allocation for child care over the period of the national development plan. However, in the initial stage of the equal opportunities child care programme, there has been a reprofiling of the expenditure due to the start-up nature of the programme in 2000 and 2001. It is expected that expenditure on the programme will rise significantly from 2002 as work on approved capital projects progresses.
To date, we have committed capital funding to 227 child care providers, both in the community and private sector, totalling just over £13 million, of which almost £1.75 million had been drawn down up to 30 March 2001. In accordance with Government financial procedures, funding for capital projects is only released as work progresses and completed. This capital funding will support almost 7,000 child care places, including the establishment of over 3,700 new child care places. In recent days, we announced the latest round of funding of which just over £1.5 million was allocated in capital funding.
The difference between the amounts committed and the amounts paid out to date reflects the fact that payments are made in stages as work progresses. In many cases it has been found that building contractors are unable to commence work on capital projects as soon as had been expected due to other work commitments, thus delaying the commencement of projects and the draw down of funds.
As the Deputy may be aware, the funding schemes were launched at the end of April 2000 and the first allocation of funding under the equal opportunities child care programme, 2000 to 2006, was released until mid-July 2000. This start date was due to the fact that funding could not be allocated until the operational programmes and the Community Support Framework was agreed between Ireland and the European Union.
The capital allocation for child care for 2001 according to the abridged Estimates volume published late last year was £35.870 million. This was revised for the current year in the revised Estimates volume to £25.870 million. It must be stressed that the revised figure is our best estimate of what we can spend in 2001 of the overall allocation, which remains intact. However, we can only allocate funds as applications are received and, as outlined above, payments are made in stages which reflect the progress of capital work.
I again reassure the Deputy of the Government's continued commitment to the advance ment of child care service delivery and that the overall allocation for childcare remains intact.
May I take it from what the Minister of State said that the restructuring of the equal opportunities child care programme means, in effect, less money is being spent on child care than originally intended? Is there a difficulty in drawing down the money made available? Is the money being drawn down, or is there a lower take-up than originally expected? If so, will the Minister of State consider broadening the parameters of bodies which may apply under the equal opportunities child care programme? I think she will agree that there is a huge crisis. People in need of child care are unable to receive or afford it. Yet, it appears that funds are not being spent under the programme. Perhaps the Minister of State will clarify the position in that regard. The press statements I have read indicate that the original amount allocated is not being spent.
It is a clear case of never believing everything one reads in the newspapers.
I usually do.
The Deputy can rest assured that there has been no reduction in the overall allocation for the programme. Our difficulty, if any, is that we are not receiving applications fast enough to allocate and get applicants to spend money quickly. The Minister announced the programme last April and allocated the first grants in July. We are forwarding applications to ADM for processing as they come in the door. We are moving as fast as we possibly can. The Deputy should note that there is a difference between grants allocated and moneys expended. One allocates a capital grant to a project for the construction of a building while one hands out the money in stages as building work progresses. Money is not handed out at the start. The same applies to staffing grants which are only paid when the staff are in place.
Is the Minister of State saying that the allocation has not been cut back from £61 million to £25 million, as reported? She has indicated that enormous amounts of money are being spent on child care, but the reality on the ground is that that money is not reaching those who are trying to provide child care places. A sum of £841,000 was allocated to Cork by way of capital grants up to 31 December, not one penny of which has been drawn down. The figure for Dublin is £2 million, of which less than £54,000 has been drawn down.
The Deputy should ask a brief supplementary.
It is very important that we obtain the facts.
I asked the Deputy to be brief to allow Deputy Owen to ask a brief supplementary.
There is a complete contrast between what the Minister of State said in replies to parliamentary questions and the reality on the ground. It is important that she explain what are the barriers to creating the places. Until we start talking honestly here about what those barriers are we will not create more child care places. It is no good announcing large amounts of money.
Will the Minister name one school that is availing of this money? Will the Minister say which city or county enterprise board has drawn down any money? These are two simple questions.
The Deputy may not have heard the reply I gave to Deputy O'Sullivan. We can only grant aid projects when completed application forms are sent in. That is pretty basic, but it is the required position. As soon as the application forms come in they are dealt with immediately. After the money has been granted, for a building perhaps, we only hand it out when the blocks appear.
We understand that.
These are excuses.
We can only hand out cash when the staff are recruited. That is why there is a difference between the grants and the cash handed out. In terms of the Estimates figure, it is clear that we have the full money to spend – the original £250 million and an extra £94 million making a total of £344 million. We want to spend it as quickly as possible. The Estimates—
It is time this question concluded.
Not a single school is operating under the £5 million; this is all mirrors.
The Minister should clear the blockages in the system.
It is important to state that—-
We must move on to the next question.
—-what we spend in 2001 is our best estimate—-
I call Question No. 12 in the name of Deputy Stagg.
There is no cover up here.
(Interruptions.)