Joan Burton (Dublin West, Labour)

I move amendment No. 13:

In page 17, between lines 29 and 30, to insert the following:

14.—Where an employer provides a childcare facility directly to an employee, or pays the childcare costs of an employee to a third party, the provision or payment shall not constitute a taxable benefit-in-kind.".

I recommended this amendment to the Minister previously. It follows from our general discussion of the issue of child care. It seeks that where an employer provides a child care facility directly for an employee or pays the child care costs of an employee to a third party, the provision or payment should not constitute a taxable benefit-in-kind. The amendment tries to even out the situation for workers. Where people work for large public employers, it is very easy to facilitate the arrangements but where they work for smaller employers, their employers may not be able to provide for the same level of arrangements that large employers, including the public service, can make.

This is another element of the jigsaw in respect of child care provision. The provision in the amendment would assist a specific and limited number and I recommend it to the Minister. Otherwise, he could review the whole area in order to take into account those who would not benefit from it. During Committee Stage he said he was anxious to avoid people getting tax benefits to which they were not entitled, or that the provision might be used as a tax avoidance mechanism. However, where bona fide child care services are provided, these arrangements are possible with large companies. It is difficult, therefore, to see why people who work for small-scale employers should not have the same advantage.

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