Fiona O'Loughlin (Fianna Fail)
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I thank the Minister of State for being here. I am used to having him give me responses and he always genuinely does so with such heart and in a very helpful manner. I know it is not easy when it is a Minister with another portfolio altogether who should be here answering.

The issue I raise is a really important one that I came across about two weeks ago. We all know we need a consistent childcare service. Childcare, of course, takes many different forms. We can talk about crèche or preschool, but people who mind children in their own homes are also very much valued and a very important part of childcare arrangements. Childminders are now required to be registered. That is to protect them and to protect families, children, etc. In Kildare alone, we have about 9,000 children in childcare. That is very significant. If anything were to happen - and, unfortunately, there are many challenges there at the moment - just think of all those people whom we rely on and who could not go to work, those key workers who may not be able to go to teach in school or may not be able to go to the local hospital as nurses, doctors or other staff, and there are so many other areas. Looking back a few years ago, I saw there were 90 registered childcare providers, but I suspect there are quite a lot more now. Two weeks ago, a lady in Newbridge, Margaret Donohoe, was contacted by Tailte Éireann to say that the playroom she, as a childminder, had in her home was going to be assessed for commercial rates. There was always the view and understanding that childminders were exempt from paying rates and we know that community childcare facilities are exempt from paying rates. Obviously, there are private businesses in childcare, etc., and they are treated as businesses. I contend that somebody who minds children in their own home is, technically, not running a business. This issue is a real concern. There is no doubt that many childminders, if they felt they were liable to pay rates, would cease operating. That would have a huge impact on those who are working and, indeed, those who are not working but, for different reasons, need to have childcare in place. Childminders have never been assessed for rates and now there is a grey area in terms of whether they are to be. We know that commercial rates are a charge based on the value of commercial properties.

Honestly, I think this would be a completely wrong step. I want to know at this point whether the Minister will say that childminders in their own homes are exempt and make that a very clear directive. That is what should happen because, while we have uncertainty, that causes problems, but equally, or more so, if there were a directive that childcare providers in their own homes were liable for rates, that would be an incredibly retrograde step.

Dee Ryan (Fianna Fail)
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Before the Minister of State answers, I welcome to the Chamber the pupils in the politics classes of St. Brendan's College, and their teachers, who are guests of Deputy Danny Healy-Rae. They are all very welcome to Commencement matters in Seanad Éireann where individual Senators have an opportunity to submit a question to a particular Department and a Minister or Minister of State will come in here to answer. The Minister of State is about to respond.

Kieran O'Donnell (Limerick City, Fine Gael)
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I presume all the group are from Kerry and no doubt the bulk of them or all play Gaelic football. I join Senator Andrews in wishing the under-17s squad well. Are we into the second half at this stage?

Chris Andrews (Sinn Fein)
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Half an hour in and the score is nil-all.

Kieran O'Donnell (Limerick City, Fine Gael)
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We wish them well and welcome our visitors to Dublin. I thank Senator O'Loughlin for her question and the opportunity to discuss the commercial rates position regarding home-based childminders, which I am taking on behalf of the Minister for Housing, Local Government and Heritage, Deputy James Browne.

Tailte Éireann is an independent Government agency under the aegis of the Department of Housing, Local Government and Heritage. Tailte Éireann provides a property registration system, a property valuation service, and national mapping and surveying infrastructure for the State. Tailte Éireann is independent in the exercise of its valuation functions under the Valuation Act 2001, as amended, and the Minister for Housing, Local Government and Heritage has no function in decisions in this regard.

Tailte Éireann has overall responsibility, under the Act, for the maintenance of all valuation lists used by local authorities in the calculation of rates liability. This maintenance is carried out under the statutory revision process. Existing rateable properties may have their valuations revised, and new properties may have their valuations entered on or excluded from the valuation list for the first time. Under the Act, all property is rateable unless it falls into one of the exempt categories listed in Schedule 4 of the Act. There is a very specific range of exemptions that can be applied. Tailte Éireann has no discretionary latitude to grant exemptions not covered by Schedule 4.

Paragraph 22 of Schedule 4 of the Act, which was inserted by the Valuation (Amendment) Act 2015, refers specifically to early childhood care and education facilities, and provides an exemption for, "Any land, building or part of a building used exclusively for the provision of early childhood care and education, and occupied by a body which is not established and the affairs of which are not conducted for the purpose of making a private profit."Therefore, while the Act provides that early childhood care and education facilities that are operated on a not-for-profit basis are exempt from rates, it does not provide a general exemption from rates for all childcare or childminding facilities operating on a for-profit basis. To avoid ambiguity, if an early childhood care and education facility is operated on a for-profit basis, then it does not fulfil the criteria for exemption under paragraph 22.

In terms of childminding in the home, section 3 of the Act defines a domestic premises as any premises used as a dwelling which is neither a mixed premises nor an apart-hotel. If the property is used partly as a dwelling to a significant extent and partly for another purpose, it may be a mixed premises, as defined in the Act, and consequently may not qualify for the domestic premises exemption in accordance with Schedule 4(6) of the Act.

As a matter of course, Tailte Éireann examines all properties on their individual merits by reference to the relevant statutory provisions governing the operation of the Act and case law arising from the independent Valuation Tribunal and higher courts. Applications to Tailte Éireann to consider the valuation of a property are normally submitted by the local authority in whose rating authority area the property is situated. Where a property is considered rateable, in accordance with the provisions of the Act and relevant case law, Tailte Éireann will issue a proposed valuation certificate. If the property is considered not rateable, Tailte Éireann will issue a proposed notice.

If an occupier is dissatisfied with any aspect of the proposed valuation certificate or proposed notice, they may make representations in writing, free of charge, to Tailte Éireann within 40 days of the issue of the certificate or notice. Following consideration of any representations received, a final valuation certificate or final notice is issued to the ratepayer or occupier. Following completion of this process, the property is either entered on or excluded from the valuation list of the relevant local authority. If an occupier is still dissatisfied, there is a right of appeal to the independent Valuation Tribunal within 28 days from the date of issue of the valuation certificate or notice. The Valuation Tribunal is an independent body set up to hear appeals against Tailte Éireann valuation assessments.

Under Irish law, there is a distinct separation of function between the valuation of rateable properties and the setting and collection of commercial rates. The levying and collection of rates are matters for each individual local authority. The amount of rates liable on a property is determined by multiplying the valuation of the property set by Tailte Éireann by the annual rate on valuation, ARV, set by the local authority. The ARV is decided by the elected members of each local authority in the annual budget. Its determination is a reserved function of a local authority. Tailte Éireann has no function in that regard.

Fiona O'Loughlin (Fianna Fail)
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I thank the Minister of State for his answer. I still believe there are a lot of grey areas. I accept Tailte Éireann is independent in the exercise of its functions. It would appear that there needs to be an amendment to the legislation regarding the exemption, which I am prepared to work on. The Act makes reference to activities not conducted for the purpose of making a private profit. Registered childminders who care for children in their homes will of course be paid an amount of money for that. If a childminder set up a company and paid themselves for their time, there would not be a profit. Therefore, the childminder would have to go to the expense of setting up a company, employing accountants, etc. This is bureaucracy at its best. We need less bureaucracy and red tape.

There is more to do on this. I will read the legislation and look to my colleagues to see whether I can get their support to push an amendment. Surely we could change the legislation to make reference to a certain number of children, perhaps six or eight.We could make that the cut-off point. Having good childcare is priceless. It is so valuable and important in making society function.

Kieran O'Donnell (Limerick City, Fine Gael)
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I thank Senator O'Loughlin again for contributing on this matter, which I am taking on behalf of the Minister for Housing, Local Government and Heritage, Deputy James Browne. I note the points she has raised. I reiterate that Tailte Éireann is independent in the exercise of its valuation functions under the Valuation Act 2001, as amended, and the Minister for Housing, Local Government and Heritage has no function in decisions in this regard. The Valuation Act 2001, as amended, provides that a property is rateable unless it is expressly exempted. I have detailed the exemptions in paragraphs (6) and (22) of Schedule 4 to the Act, which provides exemptions for domestic properties in early childhood care and education facilities that are operated on a not-for-profit basis. These do not provide a general exemption from rates for all early childhood care and education facilities.

All Tailte Éireann assessments and valuations are carried out in accordance with provisions of the Valuation Act 2001, as amended, in keeping with accepted valuation methodologies, best practice internationally and valuation provisions and case law arising from independent valuation tribunals and the higher courts. They reflect, among other things, the use and occupation of a particular property. Under Irish law, there is distinct separation of functions between the valuation of rateable property and the setting and collection of commercial rates. The levying and collection of rates are matters for each individual local authority. There are a number of avenues of redress for an occupier of a rateable property who is dissatisfied with a determination of valuation by Tailte Éireann made under provisions of the Valuation Act 2001, as amended.

As I said, I note the points the Senator raised, which will be brought to the attention of the Minister, Deputy Browne.