Business wants VHI involved in childcare

The Government and employers want all hands on deck. There are 50,000 jobs going a begging

The Government and employers want all hands on deck. There are 50,000 jobs going a begging. IBEC has estimated that if 20 per cent of those mothers who are not currently active in the labour force were encouraged back into employment, it would create a pool of some 50,000 potential employees.

Mr Brendan Butler, director of social policy for IBEC, says that IBEC and the VHI have been in discussions concerning the possibility of the VHI developing childcare services, using childcare chains from the US to manage facilities. Mr Pat Delaney, director of the Small Firms Association, believes that "childcare facilities must be developed in a regulated market, which offers flexible, high quality and equitable childcare facilities".

"The SFA is not advocating childcare as an insurance but as a new product delivered by a State agency with a proven track record," he said.

Family-friendly policies are also part of the solution: Fifty-three per cent of companies in the small and medium enterprise (SME) sector operate family friendly work arrangements, although research indicates that the term "family friendly" is not always clearly understood and that there is a perception that these kinds of arrangements largely apply to female employees with childcare requirements.

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In its document, "Quality Childcare in the Workplace", Barnardos argues that employers have a strong business case for investing in appropriate childcare measures for staff, not only to attract employees, but also for the welfare of children, who are, after all, our future. A body of research has shown the positive impact of family-friendly policies on organisational performance.

A recent survey of 83 private and public sector employers in Britain found a two-thirds increase in commitment/ motivation, employee relations, recruitment/retention and job satisfaction when family-friendly policies were introduced. Productivity and quality of work increased by one-third while absenteeism dropped by 40 per cent.

The University of Limerick has seen improved employee loyalty, well-being and attitudes since opening its university-based creche, Silver Apples. The Bank of Ireland also has a workplace creche, Little Steps Limited, where parents find great comfort in having their children nearby.

Employees at Intel, in Leixlip, use 40 per cent of the places at a nearby private day care centre - Trinity Tots - which is open from 7 a.m. until 7 p.m. daily. "The opening hours are most convenient and suitable for my working day and it certainly takes a lot of the pressure and stress out of working," said one parent.

While Intel is not directly involved in the management, ongoing consultation takes place with regard to the childcare needs of the staff. The facility is self-financing and childcare places are not subsidised.

Also on the cards are pilot projects in which companies join with local partnerships to provide day care services.

Nortel is working with Galway City Partnership, Fujisawa Ireland Limited is involved with South Kerry Partnership Limited and the Midland Health Board is partnered with the Mountmellick Development Association. There are many alternatives for employers, who may build and manage childcare facilities or simply purchase places in private day care centres for their employees, then sell them to employees at subsidised rates.

By removing benefit-in-kind (BIK) tax from childcare, the Government could encourage even more such development, said Ms Martina Murphy, who is operations director of Circle of Friends, a private business that develops and runs day care centres in co-operation with employers who want to meet their employees' childcare needs.

Abolishing BIK for childcare would enable employers to purchase childcare places on their employees' behalf.

Currently, employees are exempt from BIK on day care places only if the employer has builds and operates the facility, but this task is too daunting for most companies, especially smaller enterprises.

With Government policy still at development stage, employers and private business are filling parents' needs, but they need support.

For further information: Quality Childcare in the Workplace, a step-by-step guide for employers by Angela Canavan is available free from Barnardos (01) 4530355. Circle of Friends (01) 2845066