Written answers

Wednesday, 15 April 2015

Department of Public Expenditure and Reform

Commercial Rates Exemptions

Photo of Michael Healy-RaeMichael Healy-Rae (Kerry South, Independent)
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191. To ask the Minister for Public Expenditure and Reform his views on a matter (details supplied) regarding crèches in the private sector; and if he will make a statement on the matter. [14046/15]

Photo of Tom FlemingTom Fleming (Kerry South, Independent)
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192. To ask the Minister for Public Expenditure and Reform if he will examine a submission (details supplied) and grant a local authority exemption from commercial rates for all premises and facilities in the private childcare sector thereby implementing equity to these vital and important child development and education providers; and if he will make a statement on the matter. [14564/15]

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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I propose to take Questions Nos. 191 and 192 together.

The Valuation (Amendment)(No.2) Bill 2012 is expected to complete its passage through the Oireachtas shortly and the exemption of property used for early childhood care and education has been considered at a number of Stages both in the Seanad and in the Dáil.

I was pleased to introduce an amendment at Report Stage in the Seanad which will extend the exemption from rates, that exists for charitable providers, to not-for-profit providers of childcare. In addition, the Valuation Office, which is independent in carrying out its functions, interprets the existing legislation to exempt the premises of those that only provide the Early Childhood Care and Education (or ECCE) scheme.

There were calls during the passage of the Bill to extend the exemptions further but these had to be rejected on the fundamental valuation principle that those that operate with the intention of making a profit must be liable for commercial rates. The Valuation system cannot make an exception on the grounds that one activity is more worthy than another where both are provided with the intention of making a profit. Following the "for profit" principle takes the wider equity of the rates system into account.

The calculation and collection of commercial rates is a matter for individual local authorities to decide having regard to the resources required for funding local services.

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