High costs make it hard to set up crèches, says group

HIGH staffing costs, rents and the cost of meeting regulations are making it increasingly difficult for individuals to set up childcare facilities, according to the National Crèche and Nurseries Association.

The group is calling on the Government to introduce tax credits for parents and abolish the payment of rates and service charges for childcare providers.

The association estimates if a person were to open a crèche, they would have to charge approximately €227 a week just to cover costs.

This figure would not include any profits and would largely be made of up the cost of rent, salaries and meeting childcare regulations.

The group’s acting director of services, Teresa Heeney, said because of the high cost of establishing a crèche, chains of crèches are becoming increasingly common as they allow crèche owners economies of scale.

The owner can buy toys and food in bulk and put a promotional structure in place which can help retain staff, said Ms Heeney.

While South County Dublin crèche prices are high, the Deloitte study shows the price is driven by higher costs of up to €243 per child per week, due to higher rents.

“If providers want to remain competitive, they will have to struggle to keep costs as low as possible. The Government continues to refuse to introduce measures to cut these costs, such as removal of rates and service charges,” said Ms Heeney. “Up to 28% of costs of childcare is returned to the State in the form of tax revenue paid by the crèche owners.”

The association’s pre-budget submission, to be published today, will urge the Government directly to support working parents.

“Most parents are required to pay the entire cost of childcare out of net income. The introduction of tax credits would give huge help to these parents,” said Ms Heeney.

“Deloitte are telling us that the average cost of a full-day childcare place in Ireland is €227 per week. How then can the Government seriously offer a weekly subvention under the Community Childcare Subvention Scheme of €80 for children from families in receipt of social welfare? It will be impossible for families in receipt of social welfare to bridge this gap.”