Kathleen Funchion (Carlow-Kilkenny, Sinn Fein)
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773. To ask the Minister for Children and Youth Affairs her plans to tackle the ongoing issue of high commercial rates within the child care sector for private operators in view of the fact that rates bills being received currently for 2017 are up from 40% to 80% in some areas compared with 2016; and her views on whether this is not sustainable and will result in a negative impact on the child care infrastructure if pursued. [3805/17]

Katherine Zappone (Dublin South West, Independent)
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It is my understanding that the valuation/rating code as it applies to early childhood care and education facilities was last altered following the commencement of the Valuation (Amendment) Act 2015 in June 2015.

In summary;

1. Group 1 type facilities referred to in the correspondence are exempt by way of Paragraph 22 Schedule 4 Valuation Acts 2001- 2015 which provides for the exemption of a building used exclusively for the provision of early childhood care and education and occupied by a body which is not established and the affairs of which are not conducted for the purpose of making a private profit i.e. a not for profit organisation.

2. Group 2 type facilities are exempt under Paragraph 10 Schedule 4 Valuation Acts 2001- 2015 on the basis that the facility is used exclusively for the provision of educational services (ECCE) only.

3. Group 3 type facilities are essentially businesses established for the purpose of making a private profit and are therefore rateable.

There are also a number of early childhood care and education facilities which are exempt under Paragraph 16 Schedule 4 Valuation Acts 2001- 2015 on the basis that the facility is occupied by a charitable organisation and used exclusively by that body for charitable purposes.

My officials will be arranging to meet with the Department of Public Expenditure and Reform to discuss the issue of commercial rates for early years services shortly.