Joan Burton (Dublin West, Labour)
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Question 163: To ask the Minister for Finance if there is special tax treatment of foster parents; if foster parents are entitled to special tax credits or other payments; and if he will make a statement on the matter. [17383/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The position is that foster parents are treated for tax purposes in the same manner as other individuals. However, under the provisions of section 192B of the Taxes Consolidation Act 1997, certain payments made by the Health Services Executive to foster parents in respect of children in their care are exempt from income tax.

The payments in question are: - payments made in accordance with article 14 of the Child Care (Placement of Children in Foster Care) Regulations 1995, - payments made in accordance with article 14 of the Child Care (Placement of Children with Relatives) Regulations 1995, and - payments made at the discretion of the Health Service Executive in respect of a person who was in foster care until the age of 18 and who continues to reside with the foster parent after the age of 18. The exemption from income tax applies to such payments until the person reaches 21 years of age or completes his or her full time education or indefinitely in the case of a person with a disability.

Similar payments made in accordance with the law of any other EU Member State are likewise exempted for income tax.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 164: To ask the Minister for Finance the basis of calculation for private crèche facilities; the reason such facilities are rateable; and if he will make a statement on the matter. [17444/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I should point out that the Commissioner of Valuation is independent in the exercise of his duties under the Valuation Act 2001 and that I, as Minister for Finance, have no function in decisions in this regard. 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 unless expressly exempted under Schedule 4 of the Act. Such exempt buildings would principally include those used for public worship, education and health care provided on a not-for-profit basis, and charitable purposes. The Act maintains the long-standing position that commercial facilities - including all private childcare facilities such as play schools, pre-schools, crèches and Montessori schools - are liable for rates. The basis of rateable valuation for all commercial property is net annual value (NAV) i.e. the rental value of the property. Like all commercial properties the valuations of private crèche facilities are determined by reference to the values of comparable properties on the same valuation list.

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.

I have no plans to provide for special treatment of private childcare facilities under the Valuation Act which provides that all buildings used for commercial enterprises are valued in a fair and equitable manner. Exceptions to this key principle would be quickly followed by demands for similar treatment from other interests involved in commercial activity, which in equity would be difficult to resist. The process could thus substantially reduce local authority revenues.