Childcare is a massive issue for young parents in every constituency. The cost of childcare here is one of the highest in Europe. We need clarity on how it is proposed to reduce fees for parents, improve pay and conditions for staff and increase the number of places available for children. Fine Gael's policy lab has done excellent work to accurately reflect concerns and preferred solutions for a wide range of diverse groups in the Care of the Child policy paper. Last Friday, I visited two brilliant childcare and early years education services in Mayo. There is frustration among some about the lack of co-location of education and childcare services. This should be factored into the future capital building projects. Early childhood education and childcare must become key pillars in the national development plan. I ask the Tánaiste whether the Government's new core funding model will address affordability for young parents through an enhanced early childhood care and education scheme and the national childcare scheme.

I met Fine Gael's policy lab and we discussed these issues. On the issue of pay, we have provided a core funding package that is worth €221 million in a full year. This is supporting the development of an employment regulation order for the sector. An initial €13 per hour payment, which is more than the living wage, has been agreed and other rates are being negotiated by the joint labour committee. This will be the first time this essential sector of 30,000 women who receive pay that is far too low will have clear wage rates set for it.

The Deputy is absolutely right with regard to capacity. A total of €70 million has been set aside in the national development plan for extending the capacity of existing services and for the development of new services. We will put out the first call for that next year. The Deputy is also absolutely right regarding affordability. There is agreement in all three Government parties that affordability of childcare will be a focus in this year's budget.