Denis Naughten (Roscommon-South Leitrim, Fine Gael)
Link to this: Individually | In context

Question 214: To ask the Minister for Health and Children the reason community child care facilities need to be incorporated; if her attention has been drawn to the legal implications this has for voluntary groups; and if she will make a statement on the matter. [40726/08]

Barry Andrews (Dún Laoghaire, Fianna Fail)
Link to this: Individually | In context

Under the Equal Opportunities Childcare Programme 2000 — 2006 (EOCP) and its successor Programme, the National Childcare Investment Programme 2006-2010 (NCIP), community-based childcare services can apply for capital and support grant aid. One of the conditions of funding under both Programmes is that successful applicants operate high standards of governance. Included in these standards is the requirement that they must have the appropriate legal status to enable them to operate properly. When a group is incorporated as a company, it has a legal identity or status. It can carry out activities in its own name e.g. employ people, borrow money, buy or lease property, take or defend legal proceedings. This means that members are protected from being personally liable for the activities or debts of the company.

It is accepted that the procedures that must be taken in order to become incorporated require the services of a solicitor or an accountant and, therefore, are likely to involve expense. Any such costs incurred are eligible expenses and, as such, can be recouped by the applicant under the Programmes.