Successful nursery chains are constantly on the look- out for viable opportunities to expand and develop their businesses, whether through new types of provision such as wraparound care or neighbourhood nurseries or by opening in new locations.
So far the UK-based chain, Asquith Court Schools, and the US childcare giant Bright Horizons Family Solutions have taken the plunge and crossed the Irish Sea to operate in the Republic of Ireland. But childcare professionals reckon that where two such major players in the early years sector lead others are bound to follow. Common language and geographical closeness mean it is easier to contemplate a move into Ireland than, for example, an expansion into mainland Europe.
However, while there are many similarities between the UK and Eire, there are still hurdles to overcome for any corporate childcare company setting up in Ireland in terms of meeting the demands of operating in a different country. The obstacles range from complying with a different regulatory system to fulfilling the wishes of parents with different early years expectations.
Asquith Court, the UK's largest early education and childcare provider, has managed a 54-place nursery in Dublin for David Lloyd Leisure for a year, while this February Bright Horizons Family Solutions, which manages 300 workplace nurseries in the US, acquired the Dublin chain Circle of Friends which runs two nurseries. The only other chain listed in Nursery Chains operating in Ireland is the County Wicklow-based Lilliput Childcare which was established in 1987 and has two nurseries and an after-school club and is looking to expand further.
According to Lynda Griffiths, Asquith Court area manager, and Martina Murphy, Bright Horizons operations manager and spokesperson for the National Children's Nurseries Association, the biggest differences are the regulatory system, staffing ratios and the emphasis on Montessori education. The raft of UK initiatives in early years such as the Foundation Stage with its early learning goals and Ofsted inspections do not feature in the Irish sector.
However, some of the biggest problems facing Irish providers strike a common chord: the staffing crisis and the challenge of trying to provide affordable, high quality childcare.
The early years sector is at a crossroads in Ireland having undergone a period of reform and with more developments in the offing. Providers have to be aware that if they make the move to Eire they will need to fit in with the regime as well as keep pace with the expected changes in key areas such as regulation and training.
Martina Murphy says, 'Childcare in Ireland is moving into a new era. Regulations for childcare have only been in place since 1996 and that was very much the first step on the road and they are to be reviewed. They are the responsibility of the health boards and not social services departments. The regulations operate as a notification and inspection system rather than a registration system.
'Childcare providers are facing up to the challenge to become more professional. We don't have national training standards but they are being developed and within the next few years there will be a national standard.' She continues, 'There will be a minimum qualification and people will have a qualifications structure along which they can progress. The sector is under pressure. A recent survey by the NCNA found that providing quality, affordable childcare is a big concern. We have a huge staffing crisis. Traditionally childcare is a low paid sector and we are now having to compete for staff with the IT companies despite the slowdown. It is difficult to attract people into the sector. It is not considered to be a sexy job.'
Staff qualifications and training can also pose problems, according to Lynda Griffiths. She says the Irish early years sector is heavily geared towards Montessori education as that is what parents expect and demand for their children. 'There are all sorts of courses and it can be difficult with job applicants who say they are Montessori trained to know to what level because the Montessori courses range from a short diploma course to a three-year degree course.
'Staff recruitment is a big problem. There is very low unemployment so staff can demand salaries. They have not got the equivalent of our early years partnerships which I think is a disadvantage when it comes to staff training. There does not seem to be the level of funding for staff training. You cannot access your local partnership for training. I recently bought in training from an independent training company which was very expensive.'
Undoubtedly there is demand for more private childcare provision but currently Asquith Court is not looking to expand further. Lynda Griffiths says the daycare providers operating in the area of their Dublin setting all have waiting lists. 'Demand outweighs provision, especially for very young children. The staff ratios are 1:3 for under-ones, 1:6 for one to three-year-olds and 1:8 for over-threes. Consequently some nurseries do not take children until they are over one so there is a huge demand for places for the very young.'
Martina Murphy adds, 'Parents do not use their extended family for childcare so much these days. There has been a demographic change. People are moving to the cities. But the childcare places are not available. Some parents have to make tough decisions when they look for a nursery. If they cannot find something that meets their needs it might make them decide not to go back to work.'
A recent report by the National Economic and Social Forum in Ireland highlighted the lack of quality, affordable childcare as the biggest single issue preventing lone parents from working. The report, 'Lone Parents', says that reimbursement of childcare costs is essential if lone parents are to be encouraged to join the labour market. The report also calls for more state provision of childcare places, particularly in the form of after-school places in the most disadvantaged communities.
It says, 'Most childcare in Ireland takes place in the informal sector with a small proportion taking place in the formal sector. Efforts are being made to professionalise childcare provision, both in relation to standards and tax compliance. However, in the interim, parents have little option but to use informal arrangements.'
The Government is encouraging the development of the early years sector, including further private childcare provision, through an IR250m six-year programme of assistance which includes IR5m earmarked for training and Pounds IR9m for capital grants for private nurseries with 20 or more children. It is also helping its own employees, and an IR10m childcare package for civil service departments was announced in this year's Budget.
In the past, NIMBYism - the not-in-my-back-yard opposition of local residents - has prevented the expansion of childcare settings, with local residents successfully blocking plans for new nurseries on the grounds of increased noise and traffic as well as the development of commercial premises in residential areas. However, the Government issued guidance to local councils recommending that there should be one nursery for every 75 houses and that they should be sited within walking distance of a state school.
Martina Murphy predicts that demand will continue to increase, particularly from companies keen to highlight assistance with childcare as a tool to recruit key personnel. Bright Horizons is already working with several companies to help them develop childcare options for their staff. 'We are seeing a lot of companies which are looking at childcare as a work-life option. They see the benefits of providing some form of support for the employees' childcare arrangements,' she says.
'These companies are not just being altruistic. They are looking at the bottom line and can see that they will gain a competitive advantage if they can attract and retain good staff.'