Jack Wall (Kildare South, Labour)
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Question 199: To ask the Tánaiste and Minister for Finance his plans to remove creches and preschools from the rateable valuation net or the plans his Department has to open a new category of rateable valuation for child-care facilities; and if he will make a statement on the matter. [6860/08]

Brian 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 child care 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 child care) are rateable, for that specific area.

The Valuation Act 2001 maintains the long-standing position that commercial facilities — including all private child care - facilities such as play schools, preschools, crèches and Montessori schools — are liable for rates. It was not intended that the Valuation Act 2001 would expand or contract the valuation base. The rateable valuation of commercial property is based on net annual value (NAV) i.e. the rental value of the property. Any individual ratepayer who has concerns about the valuation of their property or of any part thereof, including its rateability or the method of calculation may, on payment of a statutory fee of €250, apply to the Valuation Office for a revision of the valuation. If dissatisfied with the outcome, they may 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.