Joanna Tuffy (Dublin Mid West, Labour)
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14. To ask the Minister for Public Expenditure and Reform the up-to-date position regarding plans to make provision to exempt preschool providers from commercial rates (details supplied); and if he will make a statement on the matter. [35840/15]

Brendan Howlin (Wexford, Labour)
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Inconsistency in the approach to the exemption from rates for childcare and education facilities and calls to exempt all such providers were among the issues raised at a number of stages during the passage of the Valuation (Amendment) Act 2015.  As a result, I got Government approval for a Seanad Report Stage amendment to insert into Schedule 4 of the Valuation Act 2001 an exemption from rates for properties occupied by parties that provide early childhood care and education on a not-for-profit basis. This extension of the childcare and education exemption removed an anomaly that existed where those that provided childcare and education on a charitable basis were exempt but those that did so on a not-for-profit basis were not.

The Valuation Office is in the process of updating valuation lists to give effect to this extension of the exemption so that it will be effective for qualifying providers in 2016. The Valuation Office's interpretation of paragraph 10 of Schedule 4 of the Valuation Acts 2001 to 2015 means that those that only provide the Early Childhood Care and Education Scheme are also exempt from rates.

The decision taken by Government to extend the exemption from rates for early childcare and education was taken having considered the views of stakeholders in the sector. As outlined in the Seanad, and subsequently in the Dáil, key valuation principles have to be respected to retain the integrity and equity of a system that is a significant source of funding for Local Authorities. One of those principles is that properties of occupiers that operate with the intention of making a profit are rateable.