A tax exemption of €8,000 a year or €650 a month for people who mind children in their own homes has been proposed by the Progressive Democrats as a means of creating childcare places.
The PDs are holding a conference in Dublin today on reform of the childcare sector.
The party said it planned to increase the number of childcare places by reforming the law to allow someone to care for up to five children in their own home before becoming subject to regulation.
It said it did not believe in what it called "the nanny state" and that it wanted to give parents maximum choice and flexibility.
Speaking at the PDs' conference in Dublin, Senator John Minihan said that for some women, remaining in the home to look after children was "simply not an option".
"How then do we cater for these women? Should we establish the kind of childcare system that is available in Sweden, a version of which was recently championed by the National Women's Council of Ireland?"
Mr Minihan said the "problem" with the Swedish system is that it is "predicated on the need to get more women into the workforce".
"The high rates of personal taxation, around 55 per cent, required to maintain such a system means that some women who would otherwise remain in the home are forced to work because the family cannot live on the net income of the sole wage earner," he said.
Tánaiste Mary Harney is hosting the day-long meeting in Dublin's Davenport Hotel, which will look at a multifaceted approach to the problem of childcare provision.
Speakers at the conference include Heidi Lockheed of employers' organisation Ibec, who will talk about the economic implications of women staying home to bring up their children, and Gráinne Hannon, a working mother.
Heino Schonfeld of St Patrick's College will address the meeting on the psychological and educational aspects of rearing children.
The conference with be attended by party members, business leaders and childcare providers.
The conference will also hear from the party's education spokesman, Senator John Minihan, who will outline the PDs' policy on childcare, and Minister for Justice Michael McDowell.
The PDs' childcare policy document, unveiled earlier this year, called for greater use of school buildings for breakfast and homework clubs.