Marie Sherlock (Labour) | Oireachtas source

I thank the Minister for coming into the Chamber. I sincerely thank Senator Currie for tabling this really important motion. All opportunities to continue to shine a spotlight on what needs to be done in childcare are very welcome. We all acknowledge that a huge amount has been achieved in this space in recent years. Notwithstanding that, there is considerable frustration among parents. My experience locally on the north side is that waiting times, particularly for babies, have never been worse. In this regard, I dealt with a father the other day whose baby is due to be born in October, hopefully. The couple has been told there might be a preschool place by mid-2026 for the child. There is the waiting times issue and a shortage of baby places. The incentive with regard to the baby places is also an issue, as is the lack of co-ordination between the Department of Education and the Department of Children, Equality, Disability, Integration and Youth. I have spoken about this before. We have heard about the loss of 105 places in Stoneybatter because of changes made by the Department of Education that effectively closed down two preschools. There is considerable frustration among parents and workers. Senator Gavan talked about the high turnover rate. The wages are simply not enough. I understand that not a single person who graduated from DCU last year – I was at the graduation ceremony – is in the sector today. Their degree was in early years education but they are all moving into primary school education, simply because it is the only way to have a decent standard of living. That is telling in itself.

The providers themselves tell me core funding is no longer working for them. They include the small providers, whose financial and administrative requirements mean the use of a chartered accountant and who struggle with the cost of operating. There is a raft of issues. With regard to the recognition of qualifications, on the basis of a bizarre turn of circumstances you need a higher level of qualification to work as an AIM worker than to work as an SNA in a primary or secondary school. That is not a reflection on what we require of SNAs in primary and secondary schools, but there is a genuine difficulty in recruiting AIM workers. What is to be done? We need to examine core funding and who is getting what. I am aware that the Minister has a particular interest in this. I believe the Minister’s Department estimated that €55 million of the €207 million given in the first tranche of core funding related to the cost of the ERO, the cost of the wages of those working in the sector. We have to ask where the rest of the money is going within the sector. Core funding is now well in excess of €300 million and we have to ask how much the Department has determined to be the cost of the most recent ERO, which was put in place of June this year. Again, workers tell us it is not enough. It is certainly something but not enough. Where is the rest of the money going? The small providers tell me funding will be used to try to maintain their operation, but what about the bigger providers? We know that core funding is very much to meet capacity, so the bigger providers are getting more than the smaller providers. We have to ask where the money is going.

I saw the article today that states one of the largest providers in the country is effectively saying she will have to leave the arrangement for core funding because she is not getting enough and cannot pay her wages. Fundamental questions have to be asked regarding some of these providers.As I understand it, that particular provider got investment of €10.5 million in 2021 and the investment vehicle invested in both childcare and nursing homes. The question now is who that childcare provider is working for. Why is it under so much pressure? Is it to yield a dividend for its shareholder, or is it because it is impacted by the cost of operations? Those questions have to be asked, particularly of some of the biggest operators in the State. If we have a system that is effectively benefitting profit as opposed to the workers in the system and parents through lower costs, then we need to have a review and look at how core funding is operating.

I thank Senator Currie for these suggestions, and they are good stepping stones, but the Labour Party certainly wants to go further in seeing a public model where the State itself steps in and intervenes to set up early-years services. On those providers who say they will close down or leave core funding, I would like to hear a commitment from this Government that if there is a closure of core funding places in a particular locality, the State will step in and provide core funded places. We cannot have a situation where parents will be exposed to significant fee increases. It is unacceptable and the antithesis of what we want in this country, which is a more affordable childcare system.

I turn to the building blocks programme, which has been an issue close to my heart for a long time when I look at the dire shortage in the north inner city and areas across the northside in particular. I welcome that the money has finally been put in place to try to expand capacity. When I look at the detail, it is ultimately predicated on matching funding for community services. As I understand it, the threshold is up to €500,000. Where will the rest of the money come from for those community services that will set up new childcare facilities? As I see it, the rest of the funding goes to expansion of existing places, but if you do not have the physical space to expand, then what will you do? We know the price of property, particularly in Dublin-----