Brendan Smith (Cavan-Monaghan, Fianna Fail)
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233. To ask the Minister for Public Expenditure and Reform the proposals he has to exempt child care facilities from payment of rates; and if he will make a statement on the matter. [43305/14]

Brendan Howlin (Wexford, Labour)
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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. In general, the Act maintains the long-standing position that all commercial properties - including all private childcare facilities such as play schools, preschools, crèches and Montessori schools - are liable for rates. 

Certain childcare and preschool facilities can be exempt from rates under the terms of paragraph 16 of Schedule 4 of the Valuation Act, 2001, where the organisation is a charitable organisation, that uses its property exclusively for charitable purposes and otherwise than for private profit. The organisation claiming charitable status for the purpose of qualifying for exemption from rates must comply with the definition of "charitable organisation" as stated in PART 1 section 3 of the Valuation Act, 2001.

Similarly certain preschool facilities can be exempt from rates where  the conditions detailed in paragraph 10 of Schedule 4 are met.  

As a matter of course, the Valuation Office examines all claimant cases on their individual merits by reference to the relevant statutory provisions governing the operation of the Valuation Act as it relates to childcare facilities and all other categories of properties. 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 Public Expenditure and Reform, have no function in decisions in this regard.

The exemption of childcare facilities from rates was raised at Committee Stage of the Valuation (Amendment)(No.2) Bill 2012 in the Seanad. Minister of State Simon Harris, who is taking the Bill through the Seanad on my behalf, undertook to consider what could be done in this regard before the Bill returns for Report Stage (expected to be in late November). The matter is under active consideration and if any change to the exemption status of childcare is proposed it will be brought as a Report Stage amendment to the Valuation (Amendment)(No.2) Bill 2012.