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Friday, Nov 21st 2008


August 15th Morning: The Recession Diaries

lighted-road-sign-prepare-to-be-annoyed.JPG Just when you despair of sensible commentary in our media, along comes someone like Carl O’Brien, Social Affairs Correspondent of the Irish Times. Writing today, he puts the educational challenges facing society into context - and not a very hopeful one considering the level of political debate surrounding the tuition fee controversy. But let’s focus on one section of his article - that of the Government’s inept handling of early education, wasteful spending and sheer bloody indifference.

Everybody now knows that early education, along with a supportive home environment, is the key to future educational and individual success, while also benefiting society. Mr. O’Brien quotes from a report:

“Neurologists have determined that 90 per cent of brain growth occurs by age three . . . Without adequate levels of care and support, without exposure to everyday experiences and stimulation, a child’s development may be damaged. Once the critical period (0-4) is past, that system of the brain will never be able to develop or function normally . . . These years are irreplaceable.”

Who is he quoting from? The Department of Education, no less. The NESC covered this ground as well, quoting from international studies showing the enormous individual and social benefit from quality early education. A €1 invested today yields €7 in return - in employment capability, reduced crime and poverty, etc.

By European standards, Ireland performs poorly in early education. How much would it cost to put this right? According to the NESC - €136 million. Now that’s not a whole lot (and in net terms, much less). And we would enjoy a ROI (return on investment) of seven-to-one. Property speculators would sell their mothers for that kind of return. So what does the Government do? Not just nothing, but something worse.

‘It proceeded to ignore the evidence and opt for the populist stroke of handing out an extra €1,100 in child benefit to all families, regardless of their level of income. This is costing the taxpayer in the region of €500 million, more than three times the cost of a year’s free pre-school for all children.’

Mr. O’Brien is referring to one of the more nonsensical and wasteful policies Fianna Fail has come up with - the ‘Early Childcare Supplement’. Even the name is rubbish. The Department of Social Affairs claims that ‘It is intended to help parents of children under the age of six to meet their childcare needs’.

First, it is paid in respect of all children - so it’s not about childcare costs. Second, days after the Government announced the new payment, private creches increased their fees, for the simple reason that their customers now had more money to pay (equation: fueling demand with extra money for parents + the limited supply of childcare places = inflation). Third, even in terms of ‘meeting childcare costs’, it’s a joke. The extra money comes to about 10% of average childcare fees - and that’s before the inflationary hit.

This is Fianna Fail education policy on the cheap. Don’t develop an infrastructure - just throw money at it. And when the money is gone, start hacking at a creaky infrastructure they refused to develop. But one thing is for certain for those one-in-four pupils in private, fee-paying schools: Fianna Fail won’t be taking their taxpayer subsidy away.

So here’s a simple programme:

  • Abolish the Early Childcare Supplement (but those in receipt should retain it until the payment runs out)
  • Abolish subsidies to fee-paying schools
  • And reinstate the 42% top rate of tax

    These three measures would free up nearly €900 million. With this money we could set up a world-class early education sector, massively invest in the primary sector and still have enough money left over to begin establishing a heavily subsidised childcare network operated by the public sector. This latter would save average-income couples more money than any wage increase or tax cut.

    It really is that simple - reallocating wasteful spending into productive spending, redistributing income to benefit all our children. Even in a recession, you can make signficiant social advances.

    Now, the question is: which progressive politician will run with this?

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