Kathleen Funchion (Carlow-Kilkenny, Sinn Fein)
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207. To ask the Minister for Children, Equality, Disability, Integration and Youth the estimated first and full year costs associated with the proposed early years and childcare State agency; the status of the establishment of the agency; and if he will make a statement on the matter. [55506/23]

Roderic O'Gorman (Dublin West, Green Party)
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On 29th March 2022, Government accepted the findings of the independent Review of the Early Learning and Care (ELC) and School-Age Childcare (SAC) Operating Model in Ireland that a dedicated state agency is the optimal operating model for the ELC and SAC sector for the years ahead. It is envisaged that this dedicated agency will undertake the functions currently carried out by Pobal Early Years (including Better Start), the City and County Childcare Committees, as well as operational functions currently undertaken by my Department.

A dedicated state agency will assist in the development of a more streamlined structure to better support the delivery of ELC and SAC, and will facilitate my Department in implementing and progressing the significant reform agenda envisaged under First 5, the Whole of Government Strategy for Babies, Young Children and their Families.

Considerable progress has been made in advancing this ambitious and transformative reform programme. My Department has commenced a comprehensive phase of analysis, planning, consultation, and engagement with sectoral stakeholders to determine how the recommendation arising from the Review can best be implemented. This phase will include a detailed design of a new agency, which will involve a comprehensive evidence-based cost projection for the establishment and annual running costs of a new state agency, determining the appropriate national, local and regional structures, an examination of all legal requirements, transition and continuity planning, and risk management. This work will culminate in a fully costed full agency design and implementation plan which will be presented to Government for approval. Indecon International Consultants have recently been appointed by my Department to carry out this work.

The implementation of this reform programme will likely require considerable lead-in time and the full establishment of a new agency will take several years to complete. A detailed timeline for the design and implementation of this complex programme of work, which will involve multiple strands of inter-dependent work streams, is currently being developed as part of the design and implementation planning phase currently underway.

The Independent Review of the ELC and SAC Operating Model in Ireland conducted by Indecon presents indicative costs for a dedicated State agency at an estimated €14.5m for one-off establishment costs and an annual cost of approximately €50m which represents an additional annual cost of €4.5m compared to the current model. However, economies of scope and scale in the new agency will potentially result in cost savings over time. It should be noted that these costs are only preliminary and may change subject to the completion of a detailed design of the new agency, a full analysis of TUPE obligations, and a comprehensive, robust and evidence based exercise to determine detailed costings.