David Stanton (Cork East, Fine Gael)
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Question 157: To ask the Minister for Finance the way in which child minders can avail of the €10,000 income disregard recently announced as part of the Government's child care package; the number of child minders he estimates will avail of this scheme in the next year; and if he will make a statement on the matter. [11324/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The new child minding scheme, which I announced in budget 2006, provides for tax relief for certain income arising from the provision of child care services.

Under the scheme, where the gross annual income from the provision of child care services does not exceed €10,000, the income is fully exempt from tax. However, the care must be provided in the child minder's home and no more than three children may be cared for at any one time.

The child minder must be self-employed — not an employee — and include the relevant gross income in his or her annual return of income to the Revenue Commissioners. The claim for the tax exemption is made with this return.

The claim must be accompanied by evidence that the child minder has notified the person recognised for that purpose by the Health Service Executive. In practice this will mean the officer appointed by the local city or county child care committee. Details of the names and addresses of the officers will be published by the Health Service Executive shortly.

Income declared under this new scheme will be subject to PRSI so that those engaged in the provision of child care services will not be denied access to the range of social welfare benefits available, including maternity benefit and old age pensions. Provision for this has been made in this year's Social Welfare Law Reform and Pensions Bill, which was published recently.

No estimate is available at this time regarding the number of child minders who will avail of the scheme over the next year.