A State childcare system would be run on a trial basis in selected areas of the country under plans being considered by Fianna Fáil and Fine Gael for a new government.
The two Civil War parties are continuing work on a framework document outlining their aspirations for a coalition government.
They hope that the document can then be used to convince other, smaller parties to join such an administration. Both sides are expected to meet again this week to finalise the document.
Sources said one of the proposals being discussed is trialing a State childcare scheme in certain areas of the country, initially focused on community childcare providers.
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Recent weeks have seen the State commit to paying the wages of childcare workers because of the coronavirus crisis, effectively nationalising the sector temporarily.
However, it is understood that a “pathway towards State childcare” is among the issues being discussed by Fianna Fáil and Fine Gael.
‘Postcode lottery’
One source said that the initial trials would be focused on some community providers, which are generally run by non-profit organisations and would be in receipt of substantial State funding already, subject to a cap on those who would participate in the trial. It was also added that the participating areas would determined by a “postcode lottery”.
Another source said the proposals are still under discussion, but the intention would be to start with trials with an aim to deliver a full State scheme over a five-year term of office.
The two parties have 72 seats between them, eight short of a Dáil majority, and senior figures have said a third party, as well as some Independents, will be needed to form a stable government.
However, the Green Party is still pursuing its policy of a national unity government and new Labour leader Alan Kelly has said his party wants to go into opposition. The Tipperary TD did not, however, rule out offering some support to a Fianna Fáil-Fine Gael government from the opposition benches, although he told RTÉ a majority government should take office.
Labour role
Some in Labour have privately suggested it could offer a Fianna Fáil-Fine Gael government a confidence-and-supply or similar agreement for a year to help the country get through the coronavirus crisis.
The Social Democrats have said their policies would not be compatible with a Fianna Fáil-Fine Gael government, with sources in the party singling out Taoiseach Leo Varadkar’s party as the main roadblock to it entering office.
Tánaiste Simon Coveney on Tuesday told RTÉ's Today with Sean O'Rourke show that the framework document would outline an ambition for the State to have a much deeper involvement in areas like health, housing and childcare.
A well-placed source in the Social Democrats said the party’s main concern is the provision of public services and that Fine Gael do not share the same approach.
“Fine Gael are the complete opposite of that, no matter how nice Coveney sounds on the radio,” the source said. The source added that the Social Democrats, who have six TDs, would be open to dealing with Fianna Fáil if it was negotiating with Sinn Féin rather than Fine Gael.
“There’d be a better chance of bringing about social democratic policies in that scenario.”
Both Fianna Fáil leader Micheál Martin and Mr Varadkar have ruled out entering government with Mary Lou McDonald’s party.