TALKS on social inclusion measures in the new national agreement concluded last night without reaching agreement on a childcare package. Rather than hold up balloting on the "Programme for Prosperity and Fairness", as the new agreement is to be called, it was decided to refer the childcare issue back to the social partners for further consultation.
Afterwards, there was some confusion over what was agreed. Initial claims by the community and voluntary pillar that there would be "a universal per child payment in the next Budget" were later withdrawn. A statement agreed with the Government merely said the "completion process with the social partners" would lead to a Government announcement on "a framework to support parents to meet their childcare costs before the end of the year".
However, the £1.5 billion packages does allow for substantial movement on social inclusion. A commitment to work toward a target of £100 a week over the lifetime of the agreement for basic social welfare payments - £72 at present - was agreed. Progress will be accelerated if economic growth exceeds the predicted annual average of 5.6 per cent.
Child benefit, currently at £56 a month for the third and subsequent child, will be increased towards a new target of £100 a month over the period. A package of at least £200 million will be targeted at the 25 most disadvantaged communities in the State.
Childcare remained the most difficult issue to resolve during yesterday's talks. The voluntary sector pressed to maximise universal payments to parents, while the Irish Business and Employers' Confederation wanted tax breaks for employers and working parents.
The Irish Congress of Trade Unions supported a £10-a-week universal payment, but also wanted tax breaks to help working parents offset childcare costs. ICTU representatives sought a tax allowance of £4,000 for the first child and £2,000 for second and subsequent children. This would be in line with the Partnership 2000 report on childcare.
After the talks the ICTU general secretary, Mr Peter Cassells, said: "We have done our utmost to get a fair deal for workers and, along with the social pillar, to develop an inclusive society. Whether this package meets the expectations of workers will be decided by them in a ballot, after considering the proposals."
IBEC's director of social policy, Mr Brendan Butler, said that employers had no problem agreeing with child-centred welfare payments, but these were a separate issue from the childcare costs facing workers. "From IBEC's perspective we still believe a tax package is the way forward. If people at work have to incur expenses there should be tax relief on those expenses."
The Department of Finance was reluctant to concede childcare demands because it lacked detailed costings. A survey carried out by Goodbody last year predicted around 20 per cent of working parents would take up a tax relief scheme at a cost to the exchequer of £30 million.
No one knows how many working parents would avail of such a scheme as it would require receipted expenditure in a sector dominated by the black economy. Finance is also resisting pressure from IBEC to lift benefit-in-kind tax from childcare subsidies to employees. It argues that these would be open to abuse.