Frances Fitzgerald (Dublin Mid West, Fine Gael) | Oireachtas source

The issue of local authority commercial rates comes within the remit of the Department of Finance, which has responsibility for fiscal policy, and the Department of the Environment, Community and Local Government, which has responsibility for the local authorities. The Valuation Office, which comes under the remit of the Department of Finance, is responsible for the implementation and interpretation of the Valuation Act 2001, under which commercial rates are levied by local authorities. The Valuation Office prepares valuation lists of commercial properties, as required by the Act, and local authorities are obliged to collect rates on properties which are listed.

Following concerns expressed by child care providers throughout the country, I raised the issue of commercial rates on preschool services with the Minister for the Environment, Community and Local Government, Deputy Hogan, who confirmed that, in line with the existing legislative framework, local authorities had no discretion in the collection of commercial rates on properties that are on the valuation list.

I understand that, on the specific issue of commercial rates on community child care services, each service is considered on a case-by-case basis on the grounds of charitable status as provided for under the Act, with the specific details of each case determining whether exemption is available. There is provision for an appeals process on this decision under the Valuation Act through which services can appeal to the Valuation Office.

Officials from my Department have met officials from the Department of Finance and the Valuation Office for a briefing on the Valuation Bill and to discuss the issues. We gave all of the information on the child care sector and the demands on same in this regard. However, it is a matter for the Minister for Finance to make changes to the Bill, including a provision on exemptions. Clearly, he must take financial considerations into account. I have also arranged for some of the providers to meet the Departments involved to discuss these issues.

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