Group says childcare spending should be €1.5bn

State investment in childcare should be in the region of €1

State investment in childcare should be in the region of €1.5 billion annually, the National Women's Council of Ireland (NWCI) said today.

Launching its ten-year plan, Accessible Childcare Model, the NWCI said a system should be implemented providing a minimum 50 per cent subsidy towards childcare costs.

Based on qualifying criteria and certain conditions governing fees, the figure should reach 100 per cent for those on minimum wage, the plan proposes.

Orla O'Connor, NWCI head of research, said: "Childcare costs are the highest in the EU but parents receive the lowest level of support in the EU."

READ MORE

Most EU countries provide free Early Childhood Care and Education (ECCE) services while Ireland has no such provision, the plan notes.

The NWCI says that in the longer term the plan would provide social and economic returns and notes child poverty rates in Ireland are well above the EU average.

"The effect of Government inaction around the issue of childcare is contributing to the high levels of child poverty and women's poverty in Ireland," Ms O'Connor said.

The cost of implementing the 10-year plan would equate to around one per cent of annual GDP, the NWCI said.

Among other initiatives contained in the plan is:

  • Increasing paid maternity leave to 26 weeks
  • Introduction of one week's paid paternity leave
  • The phasing in of paid parental leave of up to 26 weeks

Speaking at the launch of the plan today, the Minster of State at the Department of Justice, Frank Fahey, said improvements in childcare provision were in the offing and that new initiatives would be announced in the coming months.

With a general election likely in the next 18 months or so, the Government wants to cultivate a more caring image and addressing the issue of childcare costs is expected to be central to its agenda. Minister for Finance Brian Cowen is expected to allocate significant cash to subsidising childcare in December's Budget.

Mr Fahey today warned however, that comparisons to other countries, particularly Nordic, were unfair because Ireland was working from such a low base. Due to the rapid economic growth of recent years, more women were working outside the home, leading to a relatively sudden demand for more childcare places, he said.

He said Ireland has the most rigorous regulatory framework for childcare in Europe and that significant progress has been made in both provision and financial terms.

He said child benefit had increased by 380 per cent since 1987 and that there were 46,000 childcare place by the end of last year and that funding had already been committed for a further 14,500 places.

"What the Government has done to date can be seen as the first phase," he said, adding that the issues were complex and presented a great challenge.