Michael Ring
Question:133 Mr. Ring asked the Minister for Finance if he will introduce an exemption from rates for crèches to help alleviate the costs of child care; and if he will make a statement on the matter. [30577/04]
View answerWednesday, 24 November 2004
Questions (141)
Written answers
I have no plans to provide for special treatment of crèches under the Valuation Act 2001. This Act maintained the long-standing position that commercial facilities, including child care facilities such as play schools, pre-schools, crèches and Montessori schools, are liable for rates. Exceptions to this key principle would quickly be followed by demands for similar treatment from the providers of other useful services and products, which would be difficult in equity to resist. The process could thus substantially reduce local authority revenues, which would have to be made good by imposing corresponding increases on the remaining ratepayers.
The rateable valuation of commercial property is based on net annual value, NAV, that is, the rental value of the property. Any ratepayer dissatisfied with the rateability of a property, the valuation assessed on a property or the method of calculation can appeal to the commissioner of valuation in the first instance and subsequently to the independent valuation tribunal. There is a further right of appeal to the High Court and ultimately to the Supreme Court on a point of law.
The core objective of Government policy in the area of child support is to provide assistance which will offer real choice to parents and benefit all children. In that context, our policy has been to increase child benefit by substantial amounts as the main fiscal instrument through which support will be provided to parents with dependent children. Child benefit provides assistance to all parents in whatever caring choices are most appropriate for them and their children. In addition, unlike tax relief, it provides support to parents irrespective of their income status. We have also undertaken measures to favour the supply of child care by tax incentives to set up facilities, relief from VAT and relief from benefit in kind, BIK, for free or subsidised child care provided by employers.
Taken together, these represent substantial measures to assist with the cost of child care. My colleague, the Minister for Justice, Equality and Law Reform, has overall responsibility for the formulation of national policy on child care. In that context, the establishment of the €449 million equal opportunities child care programme, EOCP, for 2000 to 2006, with funding provided by the European Union and the Exchequer under the national development plan, aims to increase the supply of centre-based child care places by 50%, or some 28,400, by the time the programme ends.