The costs of childcare are rising even faster than house prices for young families, according to the latest figures compiled by the Central Statistics Office, while regulation of the sector and the imposition of standards of care is seriously deficient. For a service that is used by one-third of Irish families with pre-school children, this is an appalling situation and must be addressed.
It is all very well for the Government to concentrate on growing the economy and to revel in a labour force increase of 96,000, last year. But many of the young mothers who went back to work following the birth of their children had no option, if the mortgage was to be paid. And there was precious little left over when childminding costs were taken into account. In addition, a shortage of places meant that service providers could skimp on the quality of care while charging higher fees.
Last December, Minister for Finance Brian Cowen introduced a €10,000 tax exemption scheme to encourage childminders to register with local authorities so that a start could be made in establishing basic standards. Just 170 registered, bringing the total to less than 1,200 out of an estimated 37,000 childminders. Not all of the missing people operate in the black economy, but most probably do. And they are likely to remain there, unless the Government becomes more energetic in applying a carrot and stick approach.
Studies in other countries have shown the long-term benefits of good quality childcare. And while 60 per cent of Irish mothers stay at home with their pre-school children, the remainder depend on unpaid relatives or on commercial childminding services. The State should ensure the highest quality of care is provided for these children in appropriate settings. So far, its policy of increasing the value of child benefits for parents; grant-aiding private enterprises; subsidising community facilities and providing tax breaks for childminders has not worked. And the Economic and Social Research Institute estimates there may be a shortfall of 40,000 pre-school places by 2010.
In the period under review, childminding costs rose by 27 per cent for pre-school children. Dublin was the most expensive area, mirroring its growth in employment levels. And young parents in the capital can now expect to pay €145 a week, compared to €100 in the Border regions. Childcare costs are the highest in Europe with parents here paying about double the EU average. That is wrong and imposes an intolerable financial strain on young families. The Government must address this issue in its remaining budget.