Willie Penrose (Westmeath, Labour)
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Question 539: To ask the Minister for Finance if it is Government policy to require local authorities to impose rates upon preschool facilities if they are operated by community or private operators; if this will be a significant financial imposition upon such facilities here; if in this context local authorities will be directed to refrain from imposing such charges, which will ultimately lead to a significant cost of childcare for parents if the charge is transmitted on by the childcare providers; and if he will make a statement on the matter. [1506/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The Valuation Act 2001, which came into effect on 2nd May 2002, provides that commercially operated child care facilities such as play schools, pre-schools, crèches, and Montessori schools are liable for rates unless specific criteria for exemption are met. This is a continuation of the pre May 2002 situation. In regard to the Valuation Act, 2001, I should point out that the Commissioner of Valuation is independent in the exercise of his duties under the Act, and that I, as Minister for Finance, have no function in decisions in this regard.

It was not intended that the Valuation Act 2001 would expand or contract the valuation base. The effect of removing any category of property such as commercially operated childcare centres from the valuation base would be to increase the rates burden on other ratepayers. At the time of drafting the Valuation Act 2001 it was considered that where Exchequer assistance to certain sectors was desirable it should be direct assistance rather than interfering with local authority funding by way of rates relief.

Schedule 4 of the Valuation Act 2001 outlines the categories of property and the various uses that are deemed to be non rateable under the Act. Paragraphs 10 (education) and 16 (charitable purposes) are two areas in that schedule which may be relevant to the `ratability of pre-school facilities. In the area of education, paragraph 10 Schedule 4, exemption is limited to educational institutions, not established and not conducted for making profit or funded wholly or mainly from funds provided by the Exchequer and in either case is open to the general public. Paragraph 16 Schedule 4 provides exemption for charitable organisations that occupies and uses its facility exclusively for charitable purposes and otherwise than for profit. Therefore crèches/pre-school/playschool facilities established on a non-profit generating basis and/or operated by a charitable organisation for charitable purposes are not liable for rates.

The rateable valuation of commercial property is based on the net annual value (NAV) i.e. the rental value of the property. Any ratepayer dissatisfied with the ratability of a property, the valuation assessed on a particular property or the method of calculation can appeal to the Commissioner of Valuation in the first instance and subsequently to the independent Valuation Tribunal. There is a further right of appeal to the High Court and ultimately to the Supreme Court on a point of law. Rating legislation, as distinct from valuation legislation, and issues arising from it are matters for my colleague the Minister for the Environment, Heritage and Local Government.

The core objective of Government policy in the area of child support is to provide assistance which will offer real choice to parents and which will benefit all children. Following on from increases in Child Benefit in Budget 2006, this policy has seen a further increase of €10 per month announced in Budget 2007. This increase will come into effect in April 2007 and will bring the monthly rate of Child Benefit to €160 for the first and second child and €195 for the third and subsequent child.

Budget 2006 also marked the introduction of a National Childcare Strategy costing a cumulative €2.65bn over five years to address the supply and the cost of childcare. This strategy included the introduction of the Early Childcare Supplement worth €1,000 annually for each child up to his/her sixth birthday. A four week extension to both paid and unpaid maternity leave was introduced in 2006 and a further four week increase to both paid and unpaid maternity leave becomes effective in 2007, bringing the duration of paid maternity leave up to 26 weeks at that time and the duration of unpaid leave to 16 weeks.

A major new multi-annual National Childcare Investment Programme, running from 2006-2010, will support the creation of an extra 50,000 childcare places of which approximately 20% will be for 3 to 4 year age group and will provide an early childhood care and education focus. To date, over 900 capital grant applications, amounting to more than €170m, have been received. To complement the roll-out of these new places, a total of 17,000 childcare workers will be trained over five years. Under the EU co-funded Equal Opportunities Programme 2000-2006, more than 32,000 new places have been created and a further 24,500 places have been supported with grant-aid allocations amounting to almost €500m over the last six years.

I would also mention that in December 2005, the Government established the Office of the Minister for Children (OMC) to bring greater coherence to policy making for children. The Department of the Environment, Heritage and Local Government published Guidelines for Planning Authorities on Childcare Facilities in June 2001. The Guidelines indicate that planning authorities should ensure that their Development Plans and Local Area Plans should include policies in relation to the provision of childcare facilities. The Guidelines state that planning authorities should require the provision of at least one childcare facility for new housing areas unless there are significant reasons to the contrary, for example, development consisting of single bedroomed apartments or where there are adequate childcare facilities in adjoining developments. For new housing areas, a threshold of one childcare facility for each 75 dwellings is suggested as being appropriate.