Childcare provision in the Republic has been in crisis for many years. Stories are told of parents putting their children's names down for creches almost as soon as they find out about the pregnancy. Even then they do not always secure a place. Creche places that are available are not always suitable and few places exist for part-time childcare or community-based facilities.

Many employers cite the lack of adequate childcare as a key reason for difficulties in recruiting and retaining female staff.

Just as female participation has been growing, almost 5,000 creche places have been lost since 1999 as a result of more onerous legislation and increasing costs.

But childcare is far more than a work incentive - after all there are 400,000 mothers in the Republic with children under 15 years and only 30 per cent of these work full-time and 10 per cent part-time. Most studies have found that it is of benefit to children to receive some pre-school education before entering primary school. Since 1980, the issue has been supposedly a Government priority and almost a dozen reports have been published. Finance Minister Mr McCreevy dismayed parents and interest groups when he failed to introduce substantive measures to address the issue in each of the last two budgets.

However, under the guise of the current talks on a successor to Partnership 2000 it appears something may at last be done.

Certainly, the Government has begun acting on the supply side and a fairly wide-ranging programme of measures is being put in place by the Department of Justice, Equality and Law Reform.

The overall objective of the Government's seven-year strategy is that anyone who wants or needs it should be able to avail of affordable and good-quality childcare.

Demand side or tax measures are still on the agenda at the current talks. Irish families face far higher childcare costs than those in other EU countries. Childcare on average takes up about 20 per cent of the average industrial wage compared with 8 per cent on average elsewhere. However, the most recent report on the issue has not yet been agreed by Cabinet. And with the social partners disagreeing about the precise measures needed, the Government can point to confusion as a reason for delaying its decision.

In October 1998, the Department of Finance circulated a paper on tax which reviewed the arguments for and against and the costs of various options of implementing the commitment in the Government's action programme. It also put forward an option of putting whatever money is available into child benefit rather than tax relief. The main argument for this option was that increasing child benefit payments benefits all families, regardless of whether they are paying tax or are in paid employment or not.

This runs contrary to IBEC's proposals. The employers' body believes that the reliefs ought to be targeted at people using the formal childcare sector to encourage more providers to come out of the black economy, and to provide for a greater focusing on families with children in childcare.

IBEC says that it would also boost the quality of childcare facilities. It also points out that a substantive increase in child benefit would cost £500 million (€635 million) which would provide very significant tax reductions for childcare.

In contrast, the community and social partners are calling for a parents' childcare payment of £20 per week to be paid to parents of all children u20 a week for the under five years, and £10 per week for children aged six to 14. This would be similar to child benefit, only it would be taxed.

In contrast, the Partnership 2000 Expert Working Group advocated a broad range of proposals, such as a special tax allowance for child-minding earnings as well as disregarding child-minding income when considering eligibility for social welfare and medical cards.

It also called for a tax relief measure of up to £4,000 a year for all families who use childcare for children up to 12 years.

In discussions on Wednesday, the ICTU suggested that all the social partners sit down and devise a single agreed position which the Government could then adopt.

The ICTU is also pressing for a broad package of measures covering childcare facilities in the workplace, family-friendly workplace policies, improved maternity leave, paid paternity leave and paid parental leave.

On the supply side, under the National Development Plan, £250 million is being allocated to support childcare provision. The development plan policy is the responsibility of the National Co-ordinating Childcare Committee which had its first meeting last month. It is devising plans and setting up schemes to spend the money allocated in the Budget.

The Interdepartmental Committee on Childcare found that the supply side difficulties are the most urgent. The spending plan includes monies for an equal opportunities childcare programme.

Community-based after-school services and grants for the provision of after-schools service will be available as well as local childcare network initiatives and grants for medium-sized childcare facilities to meet requirements of stringent childcare regulations.

One scheme will give grants to childcare providers with fewer than 20 children. These will range from individuals looking after five or six children in their home to smaller community and voluntary groups. However, to avail of the grants the facilities will have to be operating in the formal economy and have full planning permission.

Training courses run by FAS and other agencies will also be on offer to childcare providers to help them attain national childcare certificates. In addition, the National Childcare Committee is examining establishing networks to give minders access to information and a network as many find themselves isolated.

Facilities caring for more than 20 children will be able to avail of enterprise grants and tax incentives. There will also be capital grants for community organisations to develop facilities in disadvantaged areas.

The Department of Social, Community and Family Affairs has funds for after-school activities. Individual schools will also be able to apply to the Department of Education for grants to provide after-school services.

It is unclear how charges for the facilities will be set up. However, the principle is likely to be that all users should contribute something but better-off households will subsidise the less well-off in individual centres.

The National Childcare Committee is also compiling a database on childcare on a per county basis. A problem, not only for families looking for childcare but also for the authorities, is that there is currently no accurate information on what childcare facilities are available. The list should make it easier for the committee to see what is required in each area.

The Budget provided for accelerated capital allowances for expenditure on childcare. The Government hopes this will be the catalyst for investment in the childcare sector by private investors, businesses and employers.