Séamus Kirk (Louth, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

To ask the Minister for Children and Youth Affairs if she has had any discussions with the Department of the Environment, Community and Local Government on exempting from commercial rates community child care services which operate on a not for profit basis [17302/13]

Frances Fitzgerald (Dublin Mid West, Fine Gael)
Link to this: Individually | In context | 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.

Robert Troy (Longford-Westmeath, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I thank the Minister. This matter relates to the cost of child care, which we discussed in our discussion on today's first Priority Question. This is a State cost on child care. In reply to a written parliamentary question, the Minister for the Environment, Community and Local Government, Deputy Hogan, stated: "With regard to the application of rates to childcare facilities, local authorities levy rates on commercial establishments. Where child care provision is within a community facility, operating in a non-profit capacity, commercial rates do not generally apply." This approach is not consistent throughout the country. In my constituency, the local authority does not charge community child care facilities, but I have been contacted by a number of facilities the length and breadth of the country that are being charged commercial rates.

Will the Minister, Deputy Fitzgerald, at least undertake to discuss this matter further with the relevant Ministers? This cost places an additional burden on child care provision, yet is under the State's remit. The approach should be consistent throughout the country. Community child care facilities, which are not-for-profit organisations, should not have State charges applied to them.

Frances Fitzgerald (Dublin Mid West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

As I said in reply to the Deputy's earlier question on the development of a child care infrastructure, we are not going to correct the issue overnight. However, we intend to work on ensuring that we have a more comprehensive child care system.

Local authorities are under a statutory obligation to levy rates on any property used for commercial purposes. The Act maintains that commercial facilities, including all private for-profit child care facilities, are liable for rates. As the Deputy highlighted, services participating in the early childhood care and education, ECCE, programme are exempt if their expenses are defrayed mainly by the Exchequer. Any top-up fee or the use of the facility outside the sessional period will remove the rates exemption.

We have discussed this matter with the responsible Department and highlighted the need for consistency. Where community services are exempt, this approach should be applied across the country. I will pursue the matter further.