Neale Richmond (Dublin Rathdown, Fine Gael)
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273. To ask the Minister for Housing, Planning, and Local Government if he has considered implementing a waiver of commercial rates for the early years sector as is in place for the early childhood care and education scheme; and if he will make a statement on the matter. [44670/21]

Peter Burke (Longford-Westmeath, Fine Gael)
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Local authorities are under a statutory obligation to levy rates on any property used for commercial purposes in accordance with the details entered in the valuation lists prepared by the Commissioner of Valuation under the Valuation Acts 2001 to 2020.

In general, the Valuation Acts maintain the longstanding position that commercial properties, including constructions affixed thereto, are rateable unless expressly exempted under Schedule 4 of the 2001 Act. Exempt buildings principally include domestic premises, farm buildings, buildings used for public worship, education and health care provided on a not-for-profit basis, as well as buildings used exclusively for charitable purposes and other than for private profit. The Valuation Office implemented the new provisions of the Valuation (Amendment) Act 2015, which came into effect on 8 June 2015, in connection with Community Childcare facilities. The Act amended Schedule 4, paragraph 22 of the Valuation Act 2001, and provided a new exemption from commercial rates. Under this provision, early learning facilities occupied by a charitable organisation and where the facilities are used for charitable, not-for profit purposes are exempt from commercial rates.

A review was initiated in 2019 to examine the underlying policy rationale relating to the inclusion of categories of relevant property in Schedule 3 and Schedule 4 of the Valuation Acts 2001 to 2020. The purpose of the review was to examine the underlying policy rationale and to assess the likely effects, costs and benefits of any proposed changes in categorisation. My Department has an overarching objective to ensure the sustainable funding of local authorities. As commercial rates are a critical source of funding for local services, any recommendations arising from the review must support that sustainability requirement. The work of the group is ongoing.