Job losses feared over ‘yellow pack’ childcare plan, providers warn

A NEW breed of “yellow pack” cheap childcare could force quality private providers out of business under the Government’s new free pre-school year, the National Association of Private Childcare Providers has warned.

The NPCP, which yesterday protested outside Dáil Éireann against the scheme, said it was “unworkable” and will cause upheaval in the industry which will take years to correct.

According to Vincent Holohan, NPCP committee member, if implemented in its current form the scheme will result in job losses, and do lasting damage to the quality of childcare in this country.

Mr Holohan said new smaller providers would spring up and put existing ones with bigger staff numbers out of business.

“Quality childcare providers who have invested in their staff, premises, equipment and curriculum will disappear to be replaced by ‘yellow pack’ cheap childcare,” he said.

“The wages of pre-school teachers will fall to levels that will drive away the best and the 38 week rule will further reduce the wages of pre-school teachers as they lose over a month’s salary compared to what they earn now.”

According to Mr Holohan, offering the same flat rate fee of €64.50 to providers across the country was ‘idiotic’ as childcare costs were tied into property repayments and overheads, which vary greatly across the country.

Those, he said, who did not go into the scheme, because they could not afford to, would come under serious pressure.

“We already operate under very tight margins that we have little capacity to reduce,” he said.

In a meeting with Minister for Children Barry Andrews last week the NPCP told him the lack of consultation and short lead time for acceptance of the scheme was unacceptable.

It said providers were angry that the Government was effectively taking over their businesses while they bore all the commercial risk.

“We are angry at the suggestion that this scheme is optional. Parents will want the subsidy which makes being in the scheme an imperative,” the NPCP said. “The majority of providers cannot support this scheme because it will result in the demise of their businesses. They welcome the funding, but the terms of the scheme are too severe.”

Fine Gael, while welcoming the concept of free preschool education, warned it had all the hallmarks of a “last minute back of an envelope” plan.