The baby boom has placed enormous pressure on the childcare sector despite some initial steps aimed at easing the problem which the Government has taken. Stringent childcare regulations, understaffing and underfunding have also worsened the situation. To date, the Government has spent £11 million (€14 million) on childcare-related programmes, with most of the funds targeting areas of disadvantage. This leaves a legion of middle-class, two-income parents juggling childcare arrangements, expenses and work commitments each day.

Despite repeated calls for childcare tax relief prior to the last budget from groups representing parents, children and childcare organisations, the Government was not forthcoming with financial assistance for parents.

"We have no difficulty giving tax breaks to American multi-nationals. Why don't we regard childcare as infrastructure like transport?" says Ms Patricia Murray, chief executive of the National Childminding Association.

"It is regarded that way in other countries and we're going to be directly in competition with them to attract multinationals. If we want more people in the workforce, we have to support childcare by giving parents tax breaks and Child Benefit money," Ms Murray said.

Children are an important part of the economic infrastructure as future generations are needed to run essential services, says Dr Tony Fahey, senior research officer at the Economic and Social Research Institute.

"There's a question of who should pay for this cost. The tradition here is that parents should pay," he said.

This attitude is changing as childcare costs become increasingly prohibitive for parents. "Children were regarded as private goods by economists. That's not entirely reasonable, because children are a public good and it's in everyone's interest to have a new generation," says Dr Fahey.

According to recent figures, of the 600,000 Irish women in paid employment, 46 per cent have children under four. Twenty-five per cent of full-time mothers use childcare facilities. It is projected that a further 218,000 women will rejoin the labour force in the future.

Meanwhile, the number of childcare places is decreasing. Recent Department of Health statistics show that more than 2,000 childcare places have been lost over the past year. Of these, 500 were in the Eastern Health Board region.

"Places were principally lost in pre-school playgroups and Irish-speaking naonari catering for children ages three to four and a half for 30 weeks a year for maybe 12 or 14 hours a week," said Ms Murray. Stricter regulations regarding the carer-to-child ratio meant some losses in creche places, too. "Some creches had to reduce the number of children and increase the cost to parents who remained with them," she said.

Demand for childcare is expected to increase by up to 50 per cent by the year 2011, according to a recent report by the Partnership 2000 Expert Working Group on Childcare. This means at least 40,000 more childcare places must be created to meet the demand.

If the supply decreases, or remains static, the cost will continue to rise. "In the next millennium, childminders will be equal to, if not more expensive than day care centres. Parents need help to pay for this and employers need to be aware of it," says Ms Stapleton.

The cost of having children was hidden in the past because it was unpaid and therefore was unexpressed in monetary terms, says Dr Fahey. However, current economic conditions, skills shortages and the number of women in the workforce means the cost is more apparent.

When double-income couples have a baby, someone has to look after it, whether it's one of the parents or someone else. Since a high percentage of women are now in the workforce, the loss of family income is higher than when married women were almost unemployable. "If you stay in the home, the cost is high because you're giving up more. The cost of staying at home is doubled," says Dr Fahey. However, many women going back to work find their pay-check isn't covering their childcare bills.

If the cost of having a child is too high, will people stop having children? One interpretation of international trends shows that countries with state-support for childcare have better fertility rates. "The fertility rate has gone down in southern Europe, Spain, Portugal and northern Italy where state support is low. Sweden now has the highest fertility rate and they have very good state support," says Dr Fahey. "If we want people to continue having children in substantial numbers then it's in our interest that the fertility rate be maintained."

The Government may have realised the potential cost to the economy. The Minister for Social, Community and Family Affairs, Mr Ahern recently indicated that the Budget may include of measures such as tax-free allowances for childcare and an increase in Child Benefit.

Last week, an initial step was also taken towards increasing the number of places available and improving the standard of childcare.

The Government allocated monies to six voluntary childcare organisations to assist with training, organisational development and networking. The £700,000 award is split between Barnardos, Irish Pre-school Playgroups Association, National Childminding Association, National Children's Nursery Association, St Nicolas Montessori and An Comhchoiste Reamhscolaiochta, with each receiving between £50,000 and £227,000.

The allocation is part of a £5 million grant from the European Social Fund to the Equal Opportunities Childcare Programme run by the Department of Justice, Equality and Law Reform.

When Mr O'Donoghue announced the allocations, he said: "It is vital that we support this important sector" and that the Government and EU were showing their "commitment to increasing both the supply and quality of childcare provision in Ireland".

Following the announcement, Ms Murray said: "We feel that this is a first step in the Government realising that childcare is an infrastructural issue."