Labour puts €1bn childcare policy as price of coalition

The Labour Party is insisting that its €1 billion a year childcare programme unveiled last night is a precondition for entry …

The Labour Party is insisting that its €1 billion a year childcare programme unveiled last night is a precondition for entry into government.

A party spokesman stated it must "be accepted as a cornerstone of any election agreement made by the party".

The programme proposes State subsidies to parents for childcare costs and tax exemptions for childcare workers.

The measures demanded by the party include a subsidy of up to 40 per cent for parents' childcare costs; a tax exemption of €8,000 for childminders over and above normal tax allowances; a free pre-school place for every three-year-old; a year of paid parental leave; the abolition of rates on childcare centres; and the introduction of "family friendly work options".

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Labour spokeswoman on childcare Senator Kathleen O'Meara outlined the plans last night, while a party spokesman confirmed that they were setting their proposals as a prerequisite for any programme for government.

The party conference which opened last night is likely to agree today to seek an alliance with Fine Gael. The childcare declaration is a signal the party will try to drive a hard bargain on policy issues.

The spokesman said Labour would produce a detailed policy document in the next few months on childcare - an aspect identified by all parties as a major issue for the next election. Ms O'Meara said the Government had only recently discovered the extent of the problem. "They had to go to the doorsteps of Kildare and Meath to find out something the rest of us have known for years," she said.

The policy document is likely to propose a subsidy of some €50 per child per week for childcare costs. The extra tax exemption would mean that childminders currently earning the minimum wage - some €14,000 per annum tax free - would be able to earn some €22,000 before entering the tax net.

The abolition of rates on childcare centres would save some Dublin childcare centres up to €40,000 per year. A party spokesman said Labour was also examining ways of providing financial support to families in which a parent chose to stay at home to look after children "in order to respect the choices that parents make".

Party leader Pat Rabbitte said the decision in today's crucial debate on whether to enter a pre-election alliance with Fine Gael must be made "in traditional Labour Party style, openly and honestly". Once the decision is made, "let's get on with the work of beating this Government and winning a bigger mandate for Labour".

He suggested that the issue of electoral strategy, which has caused divisions for over a year, should be left behind after today's vote. "From this point on we are in general election mode. We have a major task on hand. We have to confront a Government that is discredited, arrogant and out of touch."