Frank Feighan (Roscommon-South Leitrim, Fine Gael)
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Question 538: To ask the Minister for Children and Youth Affairs in relation to commercial rates on child care facilities if she will seek a review with the Department of the Environment, Community and Local Government regarding the policy and level of charge which has direct consequences for the cost of child care because of its inequitable application 20% of those providing the service are hit with rates; her plans to alleviate this burden which impacts on families and those working within child-care; if a waiver scheme is possible; and if she will make a statement on the matter. [18383/11]

Frances Fitzgerald (Dublin Mid West, Fine Gael)
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The issue of local authority commercial rates comes within the remit of the Department of Finance, which has responsibility for fiscal policy, and the Department of Environment, Heritage and Local Government, which has responsibility for the local authorities. Local authorities are obliged to collect rates on any property that is entered on the valuation lists and which is used for commercial purposes. Valuation lists are prepared by the independent Valuation Office in accordance with the Valuation Act 2001.

In July of last year the Valuation Office clarified that certain services participating in the Early Childhood Care and Education (ECCE) programme will be considered exempt from commercial rates. The exemption applies to services which are solely and exclusively used for the provision of educational services which are available to the general public, and where the expenses incurred in providing these services are defrayed wholly by the State. With the exception of community not for profit child care services which may, on a case by case basis be exempted from commercial rates, child care services which do not meet the conditions of the exemption continue to be liable to commercial rates.

I recently raised the issue of commercial rates on child care facilities with the Minister for Environment, Community and Local Government. He has informed my Department that in line with the existing legislative framework local authorities have no discretion in the collection of commercial rates and are required to levy rates on any property on the Valuation List.