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Dáil
‹ Leaders’ Questions.

Child care affordability and Government policy

Summary

Rabbitte cited survey results showing child care was unaffordable for many families and criticised the Government’s policy. The Taoiseach acknowledged the problem, outlined increased child benefit and child care funding and an interdepartmental review, and defended child benefit as the fairest approach; Rabbitte pressed him on what further action was planned.

Has the Taoiseach surveyed the results of a child care survey which are published in today's Irish Examiner? The approach advocated by the Labour Party in a comprehensive child care policy document it has published is strikingly borne out in the results of the survey. I am aware that a couple of people are permanently employed by Fianna Fáil to publish statements about the Labour Party every day.

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To which Labour Party does the Deputy refer?

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I notice that no statement has been produced in this regard.

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Does he refer to the Democratic Left wing of the Labour Party?

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No such statement has been published in respect of the Labour Party's criticism of the Government's child care policy.

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To which Labour Party does Deputy Rabbitte refer?

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Does that mean the Taoiseach and the Government are contemplating the acceptance of the Labour Party's child care policy? The Taoiseach is aware that just one person in ten believes child care is affordable. Some 84% of those who responded to the survey in the Irish Examiner believe the Government has failed to address the issue of child care. The average cost of keeping a child in crèche care is €724 which, depending on one’s tax circumstances, is equivalent at a minimum to €1,065 per month, or €13,000 per annum. Many people are spending more on child care than on their mortgages. This is a fundamental aspect of the debate about the nature of family life and society. Nine out of ten people believe the Government has failed to deal adequately with child care issues. Does the Taoiseach intend to take action of the nature proposed in the Labour Party document? Does he intend to respond to the suggestion that parental leave be increased? Does he intend to make provision for preschool education? Bearing in mind that many couples are working in one and a half jobs, does the Taoiseach intend to underline by legislative measures the right to flexible part-time working? Child care is one of the biggest issues faced by society and many of the electorate. Given the amount of taxes people are paying and the extent of the Government’s budget surplus, the electorate wants to know the nature of the Government’s response.

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Deputy Rabbitte is right to state that child care is a big issue. It is a big issue because 2 million people are working in our strong economy, which has grown over recent years. The number of women in the workforce has increased from 400,000 a decade ago to 800,000. It is estimated that approximately 220,000 people need child care facilities. The Government increased child benefit payments from €38 to €141 at the last budget. The overall child care budget increased from €500 million to €2 billion. Some €499 million has been invested under the equal opportunities child care programme to provide over 30,000 child care places. I accept child care is still a big issue that needs to be dealt with, however. The Government has examined all the child care reports. Deputy Rabbitte will not mind me saying that the Labour Party's child care document is very similar to the National Economic and Social Council's document on the same issue — it is almost word perfect.

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It is a photocopy.

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It is plagiarism.

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The Labour Party is cogging the exams again.

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The NESC copied us.

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That would be a waste of money.

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A number of child care surveys and examinations have been published. The Government has asked an interdepartmental group to examine the matter.

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Paul McGrath Mr. P. McGrath Fine Gael

The Minister, Deputy Martin, was involved in that too.

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The group raised many issues and finalised seven basic proposals, all of which are in the public domain. I agree with Deputy Rabbitte that child care is a major and significant issue. I do not believe that every single proposal that has been made by every group can be accepted at once. I have noted that many of the organisations have said we need to build on the successes which have been achieved over recent years. Most people acknowledge achievements such as the considerable increase from €38 to €141. I accept that some people are paying as much, if not more, on child care as on their mortgages. I do not deny that it is a huge drain on such people's resources. The Government is considering what it can do about this problem, which cannot be totally resolved in one go. The Government trebled child care payments in a single budget by implementing a huge increase of €32.

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That was child benefit.

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The Government decided to increase child benefit because agreement could not be reached the last time the matter was examined comprehensively by the various groups. The Government was faced with a decision when there was total disagreement among the main organisations. It decided that changes in the child benefit system represented the best way of making progress. Having listened carefully to the organisations in question on this occasion, the Government is trying to make some further improvements. That some 220,000 people have child care needs is a major issue. I acknowledge that the Government has to try to make progress. The Government has succeeded in providing 30,000 child care places in not-for-profit community crèches under the equal opportunities child care programme. It has completed what it set out to do, which was to treble child benefit, so now it needs to try to do something else.

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The Taoiseach has agreed that child care is a big issue. I accept his comment that it is impossible to put in place a perfect child care system overnight, given the absence of a decent system up to now. Having listened to the Taoiseach's response, however, it is unclear what the Government proposes to do. He said, for example, there are 2 million people in the workforce. Is the Taoiseach implying he will forget about the women — they tend to be women in the main — who are forced out of work because of the cost of child care or who make the choice to leave the workplace to look after their children for a period? Does he plan any legislative measures to address the question of flexible working and the right of the spouse, whichever one it is, to go back into the workforce? The Taoiseach does not appear to have thought about that and he appears to be confusing child care with child benefit.

Talking about confusion and NESC, I thought it was at Cavan that we had NESC, not at Clonmel. The Taoiseach can include NESC as part of the hegemony he has established over various quangos. I do not know what he learned in Cavan but from what I can see it was not very much. What is the Taoiseach's position on improving parental leave and pre-school education and does he plan to give any kind of legislative underpinning to the right of people to take up part-time work or to leave work for a period? On the question of stay-at-home spouses, does he intend to grant equal treatment for them in whatever measures are introduced for people at work?

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I made the point that the reason there is such a demand for child care is because there are 2 million people working.

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They have to work to pay the mortgage.

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In this case I am talking about people in the workforce. Some 800,000 people are now working. The reason the Government decided to go the child benefit route the last time was that there was no agreement by the representative organisations as to how this could be done both for people who were in the workforce and for those working in the home. For that reason the Government decided the fairest way was to move from child benefit of €38 to the current rate of €141 which was an enormous increase. I will not go into the history of how small increases were in the past but we gave an enormous increase in child benefit from €500 million to €2 billion.

Child benefit is child care. It is money to help people whether they are working in the home or outside of it. I do not think one can discriminate between people working at home and those in the workplaces. It would be putting one against the other and that would be the wrong thing to do. We have already improved parental leave. A number of initiatives are in place in my Department to support the needs of a diverse workforce, including work sharing options, flexi-time, career breaks, paternity leave, term leave, special leave for domestic circumstances, adoptive leave and carer's leave. All of these are in operation in my Department. I support them all and their extension. I agree with whatever helps a person to pursue his or her career in a proper way.

Under the equal opportunities child care scheme we have gone from a position of zero to a network of community non-profit crèches. These have got both capital and costs of up to €499 million to provide 26,000 child care places — at maximum capacity there will be 38,000 or 39,000 places. All of these things are necessary. Officials across Departments have looked at all the best models, which are considered to be in Finland and Sweden. Finland appears to come out No. 1 in Europe. We have looked at the models to see what we could achieve over a number of years now that we have improved child benefit. I would like if we could move to deal with some of these issues. Seven issues have been identified and the interdepartmental group has suggested that we should pursue one or two of them. We are looking at those to see what we can do to at least get the process started.

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