Childcare is a major concern for employees, and a prime consideration in determining the supply of skills in the marketplace - so what is the situation and what is being suggested as a solution?

The Chambers of Commerce of Ireland (CCI) recently published Labour Force 2001 - Childcare an employer survey that reveals the growing impact that the lack of childcare places is having on labour market participation.

Launched by the Minister of State with Special Responsibility for Children, Ms Hanafin, the survey shows that 57 per cent of companies whose staff have children less than 12-years-old are concerned about childcare. Some 13 per cent of these companies believe that the current shortage of affordable childcare is impacting on their ability to train staff.

Jennifer Lee, chairperson of CCI's human resources council, says: "The shortage of affordable childcare places is seriously hampering companies' ability to recruit and retain staff at a time when almost 40 per cent of them have vacancies. The latest figures from the Quarterly National Household Survey show that 144,000 people who want to work do not have jobs and many of these people could join the labour market if affordable childcare was available."

The Labour Force 2001 - Childcare survey shows that in half of all the companies surveyed, women made up 50 per cent or more of employees. Cost (72 per cent), unavailability (65 per cent) and poor quality (13 per cent) were the principal difficulties faced by employees when looking for childcare services.

The problem of the cost of childcare was most acute in Dublin. Availability was the key issue in the south-west and to a lesser extent in the midlands, followed closely by that of cost.

Jennifer Lee believes one solution is to boost the supply of childcare places, but she feels that the funding earmarked for the development of childcare under the National Development Plan may not effectively tackle the crisis.

She says: "The sector is underdeveloped and will not be able to cope with the forecast increase in demand, particularly in the light of strong inward migration."

Ms Lee explains that less than 9 per cent of the National Development Plan childcare allocation for 2000 was spent last year. She comments: "Must we wait until today's children are parents before we have an adequate childcare infrastructure?"

Carol Baxter, policy manager with the National Women's Council of Ireland, advises that in 1999 an Isis Research Group report New Mothers at Work shows that motherhood exacerbates the burdens on women in the workplace and therefore they reluctantly withdraw.

She says: "But it is the arrival of the second child that is the key factor. This comes up in report after report as a determining factor in people withdrawing from the workforce."

Ms Baxter also points out that if women withdraw from the workforce, this disrupts their social insurance credits, their pension credits, and that they often return to other jobs other than their chosen careers.

She says: "Research on women returners carried out by Veronica McGiveny in 1999 also shows that if they are out of work for more than one year, difficulties can appear and there is now a persistent trend in 'downward mobility' amongst this group.

" More flexibility is needed concerning childcare and our view is that in the long-term there should be a system, similar to the education system, whereby every child has a right to a place in childcare.

"There should be a subsidy given on a sliding scale. There should also be refundable tax credits for childcare."

The crisis in Ireland's childcare and the lack of affordable childcare places is, according to Jennifer Lee, going to take an overall review of funding coupled with a long-term strategy for the development and maintenance of the sector.

"The strategy should address issues such as the overall mix of the supply of childcare envisaged and how will services be sustained in the long-term."

Carmel Mulroy, policy executive with the CCI, believes that the funding allocated for childcare provision under the NDP is not enough.

"The figure of some £350 million spread nationally over seven years will not be adequate to meet needs considering the base we're coming from," she says.

"The Goodbody report of 1999 forecast a rise in demand for childcare places of up to 50 per cent between now and 2011. Considering such factors as net inward immigration, with some 20,000 per annum coming in to Ireland, half aged between 25 and 44, there will be a further increased demand for childcare places."

Ms Mulroy points out that the core issue is supply of affordable childcare places.

"Parents can only afford so much," she says, "and the gap between what they can pay and what the cost is could be met with either a subsidy or a capitation fee payable to the childcare provider. This would also encourage more people to become providers."

Carmel Mulroy also explains that funding to childcare must be long-term and sustainable.

"Some funding grants presently only run for three years. What is supposed to happen after that? If the childcare sector was funded in a sustainable way it would attract more people into it, more places would be generated.

"As it stands now many people are leaving the sector. Something needs to be done sooner rather than later to address the rising crisis in the childcare sector."