A GROUP representing pre-school providers has expressed concerns over the Government’s free pre-school education plan, which they say could cause a financial disaster in the sector.
The scheme, announced in the supplementary budget, could put many care providers out of business resulting in the loss of facilities for parents and widespread redundancies, according to the National Association of Private Childcare Providers (NCPC).
Representatives of the recently formed association, which currently has some 300 members, are to meet Minister for Children Barry Andrews today to present their fears about the effect the new scheme could have on private care providers.
Under the scheme, which is due to come into operation next January, a year of early education will be introduced for all children aged between three years, three months and four years and six months.
Pre-schools which are registered for the scheme will be paid a weekly capitation grant of €64.50 to cover 15 hours for each child.
These children will receive free pre-school provision of three hours a day, five days a week over a 38-week year. The Government expects the free pre-school year to benefit 70,000 children annually at a cost of €170 million.
Pre-school providers are worried that the grant will not cover their costs, especially because parents will not be allowed to top up the grant. The scheme works out at a monthly payment of €258, but the association says that many pre-schools in urban areas have to charge up to €400 a month for 15 hours of care a week.
“The idea that private providers can provide ‘free’ childcare at a cost of €64.50 a week is deeply flawed,” Vincent Holohan of the NCPC said. “The cost base for most suppliers is much higher than this as many acquired premises at the high values that prevailed over the last 10 years.”
Mr Holohan said a non-participating provider would inevitably lose business to schools that are part of the scheme. Children would be placed in larger groups by businesses attempting to cut costs and the standard of education they received would fall.
Mr Holohan said a daily subsidy scheme, similar to that used in Britain, which allow parents to top up the grant would be preferable.
