Michael Creed (Cork North West, Fine Gael)
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Question 193: To ask the Tánaiste and Minister for Finance if his attention has been drawn to the anomalous situation vis-À-vis host carers as opposed to foster parents as defined under the Placement of Children in Foster Care Regulations 1995 regarding the treatment by the Revenue Commissioners of payments received by these people in respect of care provided for people with disabilities; and if he will correct this anomaly as a matter of urgency. [18811/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Foster care payments are exempt by virtue of section 192B of the Taxes Consolidation Act 1997. This measure was introduced by section 11 of the Finance Act 2005. Children in foster care are in the care of the State under the Child Care Act 1991. Foster carers undertake to care for foster children on the State's behalf and as such are a unique group in unique circumstances.

However, I would also point out to the Deputy that Budget 2006 introduced a scheme, which is provided for in the Finance Act 2006, whereby a person who provides childcare services for up to three children who are not their own in their own home could earn up to €10,000 per annum from the minding activity free of income tax. This amount was increased to €15,000 per annum in Budget and Finance Bill 2007. "Childcare services" are defined as "any form of childminding services or supervised activities to care for minors, whether or not provided on a regular basis".

This scheme of tax relief for childminders is likely to be of benefit to host carer families in respect of care provided for children with disabilities. In fact, the enabling legislative provisions for this in the Finance Act 2006 were designed having regard, among other things, to the type of care provided by host carers as mentioned by the Deputy. To the extent that payments are received by host families in respect of care for adults with disabilities, such payments are not currently subject to an income tax exemption.