477. Deputy Gillian Toole asked the Minister for Children, Disability and Equality the cost benefit analysis that has been carried out to determine the benefits of resourcing existing childcare provision facilities versus the construction/ renovation of greenfield sites; and if she will make a statement on the matter. [29226/26]

The Programme for Government commits for the first time to provide capital investment to build or purchase State-owned early learning and childcare facilities, to create additional capacity in areas where unmet need exists. State ownership of facilities is a very substantial and significant development and offers the potential for much greater scope to influence the nature and volume of provision available and to ensure better alignment with estimated demand.

In January I announced €135 million for this programme of capital investment in buildings for high-quality, accessible State-led early learning and childcare. The process will begin in 2026 with investment in buildings in what will be a ground-breaking initiative for this government. Capital funding will be used to acquire and/or fit out the building, depending on requirements.

There will be a particular focus in the new State-led facilities on providing places for 1–3-year-old children, with capacity for these children to continue in the service until they start school, because this is where the need is greatest. The aim of delivering additional supply of this type in suitable locations will include both rural areas and urban areas which are not well served at the moment.

The objectives of the capital programme, as set out below, were developed on the basis of a detailed strategic assessment and programmatic business case which analysed the issues of supply of places and options to address misalignment.  The are as follows:

To deliver additional publicly subsidised supply for Early Learning and Care where required, with a focus on places for 1- to 3-year-olds and sufficient places for children to age up in the same service.

To deliver additional supply where required in areas of disadvantage and rural areas.

To ensure all supply delivered is inclusive and high quality.

To deliver supply in appropriate locations, taking account of accessibility for parents, links with other relevant services/amenities, appropriate land-use, and spatial planning goals.

To ensure cost-effectiveness and timeliness of delivery.

and

To support improved public management of the ELC sector as a whole.

A suite of appraisal tools have been developed, including a forward planning model, in order to select projects that align with these objectives.

Up to eight buildings will be selected for investment this year and the State-led initiative will provide thousands of places up to 2030 using the €135 million provided in the National Development Plan. The level of investment will ramp up over the lifetime of the Government.

A Capital Steering Group is in place within the Department. The Department is assessing sites and buildings and, where required, will seek expressions of interest from operators to deliver these State-led services.

The initial approach is on purchasing and refurbishment of buildings given that this is a faster route to delivery in the short term. However, the option of building new facilities will also be considered over subsequent years.

Separately, capital funding is available to existing providers to extend the current buildings through the Building Blocks Extension Grant Scheme.  Projects that will deliver an estimated 1,500 new places are proceeding.  Just this week I have launched a further phase of the scheme which will make available €10 million next year for extensions to premises by both private and community services that are Core Funding Partner Services.