A restructuring of the €1,000-a- year early childcare supplement to exclude payment to children of EU migrant workers living abroad is promised by Fine Gael if it gets elected to government.
Fine Gael social affairs spokesman David Stanton TD said yesterday the party would give priority to investigating if the administration of the payment could be changed so only children living in the State benefited.
Fianna Fáil and Fine Gael clashed over the State's likely exposure from the supplement introduced by Minister for Finance Brian Cowen in his budget in December 2005. Fine Gael suggested the payment only be made on production of certified childcare receipts.
However Minister of State for Children Brian Lenihan accused the party of being "xenophobic" and said the alternative proposal would discriminate against stay- at-home parents.
Mr Stanton said the party would look at the administration of the scheme if in government.
He said the idea of the supplement - which the Department of Social Affairs estimates will cost the State €27 million in payments to children of migrant workers not living in the State this year and €30 million next year - was to help families towards rising childcare costs.
"The millions going to children of immigrant workers overseas should be kept in this country to help offset parents' huge costs.
"In other countries they have far fewer childcare costs and they also have far better childcare facilities and programmes, so we feel we have to look at how it is administered."
He said last night the matter had not been discussed with its potential government partners Labour, but Labour had raised similar concerns when the supplement was first introduced.
"We would look to reorganise it so it can be paid in respect of children's costs here."
A Labour Party spokesman said it was their understanding that it was not possible to restructure the payment under EU law. It said it had no immediate plans to look at the payment.
Under EU law, employees from any member state can claim child benefit in the country they are working in even if their children are living back in their home country.
The €1,000 childcare payment for under-6s is also paid automatically to such children even though it was intended to help subsidise childcare costs in Ireland.
The Attorney General has advised the Cabinet that any attempt to discriminate between Irish and EU workers in the payment of child subsidies could be illegal. The total payment this year of the childcare supplement and child benefit combined is €85 million, expected to rise to €130 million next year.
Fine Gael, meanwhile, has promised to introduce a range of family-friendly policies if in government, including the provision of more child psychologists, more speech therapists and free GP visits for everyone under 16. It also promises the establishment of an ombudsman for older people.