Tony McLoughlin (Sligo-Leitrim, Fine Gael)
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820. To ask the Minister for Children and Youth Affairs her views on whether new Government supports for financially challenged private creches nationwide should be considered in order to reduce the financial burden many are currently undergoing due to the requirement to pay commercial rates to councils; if her attention has been drawn to this issue; if she will consider leading this approach at Government; and if she will make a statement on the matter. [11254/17]

Katherine Zappone (Dublin South West, Independent)
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I am very much aware of the issue of commercial rates and the impact it is having on early years services.

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.

Officials from my Department have contacted the Department of Public Expenditure and Reform with a view to arranging a meeting with them to discuss the issue of commercial rates for early years services.