Charles Flanagan (Laois-Offaly, Fine Gael)
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Question 147: To ask the Minister for Finance his views in respect of the levying of commercial rates against the child care providers; his further views on whether this would appear to be at variance with the National Childcare Investment Programme; if he has discussed the matter of the levying of commercial rates and water charges on such child care providers; and if he will make a statement on the matter. [18590/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The National Childcare Investment Programme is a matter in the first instance for my colleague the Minister for Health and Children.

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 child care 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 child care 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 should also 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.

I have no plans to provide for special treatment of private child care 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, which if it were not to entail an increase in Exchequer funding of local authorities, would have to be made good by imposing a corresponding increase on the remaining ratepayers.