Written answers

Thursday, 27 September 2007

5:00 pm

Photo of Willie PenroseWillie Penrose (Longford-Westmeath, Labour)
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Question 47: To ask the Tánaiste and Minister for Finance if he will take steps to ensure that a general waiver of rates on all registered childcare facilities is implemented; and if he will make a statement on the matter. [21249/07]

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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The Valuation Act, 2001 which came into effect on 2 May 2002 provides that all buildings used or developed for any purpose including constructions affixed thereto are rateable. 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 Tánaiste and Minister for Finance, have no function in decisions in this regard.

The basic premise under the Act is that all interests (including buildings) are rateable unless expressly exempted under schedule 4. 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 rateability of child care facilities. Accordingly, purpose-built childcare buildings designed and used to make profit are rateable as commercial buildings. Houses which have been adapted for commercial use in a dedicated area (i.e. converted garage for exclusive use as childcare ) are rateable, for that specific area.

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.

The rateable valuation of commercial property is based on net annual value (NAV) i.e. the rental value of the property. Any ratepayer, dissatisfied with the rateability 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 also a further right of appeal to the High Court and ultimately to the Supreme Court on a point of law.

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. 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/adoptive leave in each of 2006 and 2007 bringing the duration of paid leave up to 26 weeks and the duration of unpaid leave to 16 weeks

A major new multi-annual National Childcare Investment Programme, running from 2006-2010 to support the creation of an extra 50,000 childcare places. To complement the roll-out of these new places, a total of 17,000 childcare workers will be trained over the period

A new childminding tax relief was also introduced to support the informal childcare sector.

This National Childcare Strategy is also included as part of the Social Inclusion Priorities set out in the recently published National Development Plan. Furthermore, there is a commitment in 'Towards 2016' to increase the number of childcare places by 100,000 over the lifetime of the framework through a combination of National Childcare Investment Programme, appropriate successor programme(s) and other providers.

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. I have no plans at present to provide for special treatment of purpose-built childcare buildings under the Valuation Act.

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