Dáil Éireann Debate, Tuesday - 30 March 2004
232 Mr. J. Higgins asked the Minister for Finance the measures he intends to take as a matter of urgency to help parents with the excessive burden of child care costs; and if he will make a statement on the matter. [9596/04]
Amharc ar fhreagraIn recent years, the Government has carefully considered the whole area of child care and its cost. In that context, the core objective of Government policy in the area of child support is the provision of assistance to parents which offers real choice and is beneficial to all children. As a matter of policy, the Government has decided that child benefit will be the main fiscal instrument through which support will be provided to parents with dependant children. Child benefit provides assistance to all parents to make choices regarding child care which are most appropriate for them and their children. In addition, unlike tax relief, it provides support to parents irrespective of their income status.
In line with this policy approach, the Government commenced a major initiative to substantially increase the rates of child benefit. In 2001 the rate for the first and second child was increased by almost €32 per month and by €38 per month for the third and subsequent children. This represented an increase of over 50% on the rates prevailing in 2000. Similar monetary increases were provided in 2002. Further increases were implemented in 2003 and in budget 2004 I announced additional increases of €6 and €8 per month respectively which are around double the projected inflation rate for the current year. All of this means that, since 1997, child benefit rates have increased by over 230% compared to a projected increase in inflation of only 28% over the period 1997 to 2004.
The Government has also designated the Department of Justice, Equality and Law Reform as the lead Department with respect to the supply of child care places to meet the needs of parents in employment, education and training and my colleague, the Minister for Justice, Equality and Law Reform, has overall responsibility for the formulation of national policy on child care. In that context, the establishment of the €436.7 million equal opportunities child care programme 2000-2006, EOCP, with funding provided by the European Union and the Exchequer under the NDP and the anti-inflationary package, aims to increase the supply of centre based child care places by 50%, or about 28,400, by programme end.
I understand that, to date, more than €254.3 million has been allocated in funding under the EOCP. I also understand that some €211.4 million of this funding has been allocated in capital funding for community based-not for profit and private child care facilities and staffing funding for community based-not for profit groups in disadvantaged areas, with a further €42.9 million allocated to quality improvement measures. When fully drawn down, the funding allocated to date will lead to the creation of 28,002 new child care places and support over 26,500 existing places. Much of the remaining funding will be required for the second phase of existing staffing projects and new capital and staffing projects which best meet the programme criteria in terms of value for money and service need. Significant support is also provided to enhance quality awareness across the child care sector.
In light of the significant progress being made in the area of child care, allied to the very significant increase in direct financial support through child benefit, I am satisfied that the Government is providing substantial support to parents to assist them in meeting child care costs and is also acting to increase the overall supply of child care places.
