Jerry Buttimer (Cork South Central, Fine Gael)
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Question 451: To ask the Minister for Children and Youth Affairs her views on a matter (details supplied) regarding the early childhood care and education scheme; if she will examine whether it is necessary to propose legislation in order that such preschools can benefit from the intended exemption from commercial rates, or, alternatively, if she will consider increasing the amount payable to preschools under the scheme to assist in covering this increased and unanticipated additional cost that preschools are now having to pay. [21101/11]

Frances Fitzgerald (Dublin Mid West, Fine Gael)
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I have responsibility for implementing the free Pre-School Year in Early Childhood Care and Education (ECCE) programme, which was introduced in January 2010 and is being participated in by some 4,300 pre-school services.

The Valuation Office is responsible for the implementation and interpretation of the Valuation Act 2001 under which commercial rates are levied by the local authorities. The Valuation Office prepares valuation lists of commercial properties, as required by the Act, and local authorities are obliged to collect rates on properties which are listed. I recently raised the issue of commercial rates on pre-school services with my colleague the Minister for Environment, Community and Local Government who confirmed that, in line with the existing legislative framework, local authorities have no discretion in the collection of commercial rates on properties which are on the Valuation List. As responsibility for the Valuation Act 2001 and the Valuation Office fall within the remit of my colleague the Minister for Finance, any change to the Act including any provision for additional exemptions, are a matter for his Department to consider.

When the ECCE programme was introduced in 2010, I understand that the Valuation Office originally took the view that participating services which were solely and exclusively used for the provision of educational services which are available to the general public, the expenses for which were defrayed wholly or mainly by the State, would be considered for an exemption from commercial rates. However, in July of last year, the Valuation Office clarified that only services which are solely and exclusively used for the provision of educational services which are available to the general public, and the expenses for which are defrayed wholly by the State, will be considered for exemption. I understand that local authorities do have discretion, on a case by case basis, to exempt community not for profit services, pre-school services, from commercial rates. In all other cases, I regret to advise the Deputy that pre-school services continue to be liable to commercial rates.

The ECCE programme is expected to cost €166 million in 2011, rising to €180 million in 2012 as the number of eligible children is set to increase as a result of the rising birth rates from 2007. In the context of the severe financial difficulties facing the State, I do not propose to seek increased funding to increase the capitation rates payable under the programme.