The Republic faces a childcare crisis within 10 years unless Government and employers move to redress a dearth of facilities for working mothers, a conference was told yesterday.

With the average age of the labour market set to climb sharply in the next decade, industry and the State must act now in anticipation of these demographic shifts, the "Babies and Bosses" conference heard.

Ms Maria Cronin, director of European and social policy at employers' organisation IBEC, said affordable childcare was emerging as a crucial issue for the economy.

She said: "Today, the peak of our population is in the 20- to 24-year-old age bracket. In 10 years many of these people will be working parents. We also know that today over 50 per cent of women are currently going into third-level education compared to only 40 per cent of men.

"We must encourage these highly qualified people to continue to participate in our workforce and adequate childcare facilities will be a key requirement for this to actually happen."

Affordable childcare is a "vital infrastructural need", added Mr Neil Brown, chair of the conference. A co-ordinated childcare strategy offered business many hidden advantages, he said.

"Employers can benefit significantly in the form of reduced absenteeism, lower staff turnover and increased production by implementing practical childcare policies which best meet the needs of their workforce."

Companies should look on childcare as an investment "which will pay large dividends in the form of increased retention, staff loyalty and ultimately shareholder value", he said.

With many firms finding it increasingly difficult to retain key staff, childcare offers a key competitive advantage, said Mr Brian Lenihan, Minister of State at the Department of Health and Children.

The conference was organised by the childcare committees of Dún Laoghaire-Rathdown, Dublin City and South Dublin, and supported by The Irish Times and IBEC.