Paul McGrath (Westmeath, Fine Gael)

I move amendment No. 22:

In page 17, between lines 7 and 8, to insert the following:

"11.—As respects the year of assessment 2005 and subsequent years of assessment the Principal Act is amended by the insertion of a new section 473B:

'473B.—(1) In this section—

"approved child minding services" means an institution which is registered by the Department of Social and Family Affairs on such terms and conditions as the Minister for Social and Family Affairs determined by regulation;

"approved child minding" means a full or part-time child minding service provided by an approved child minding service provider;

"qualifying expenses" means the amount of fees or charges chargeable in respect of approved child minding.

(2) Subject to this section where an individual for a year of assessment proves that he/she on his or her own behalf or on behalf of his or her dependant made a payment to an approved child minding service provider in respect of approved child minding for a child who is the child of the person making the payment, or in respect of whom the parent making such a payment is in loco parentis or is an adoptive parent or the child is a child of a dependant of the person making such payment, relief from income tax at the standard rate shall apply on such payment up to a maximum of €7,000. The income of such person to be charged income tax for the year of assessment shall be reduced by the amount which is the lesser of—

(a) an amount equal to the payments so made,

(b) €7,000, or

(c) The amount which reduces the chargeable income of such person to nil.'.".

This amendment proposes a system of tax relief for child care expenses, an issue that has provoked a great deal of discussion in recent times. Many people are aggrieved because they do not receive enough help with the child care costs they are incurring. I recently spoke to a young couple with two children and they commute to work not from County Westmeath but from County Meath, on the main road.

See this speech in context