Dáil Éireann Debate, Wednesday - 17 September 2014
334. Deputy Michael Healy-Rae asked the Minister for Public Expenditure and Reform if he will consider abolishing commercial rates from struggling crèche facilities, pre schools and montessori type schools; and if he will make a statement on the matter. [32969/14]
View answerThe Valuation Act, 2001 provides that all buildings used or developed for any purpose are rateable unless expressly exempted under Schedule 4 of the Act. In general, the Act maintains the long-standing position that all commercial business properties, including those occupied and used for the provision of childcare facilities are liable for rates. Such rateable premises would ordinarily include playschools, pre-schools, crèches and Montessori schools.
The Act is quite specific in relation to the exemptions that can be implemented by the Commissioner of Valuation. These are set out in Schedule 4 of the Act and there is no discretion to grant exemptions not covered by Schedule 4. Buildings which qualify for exemption from rates under the provisions of Schedule 4 would principally include those used for public worship, education and health-care provided on a not-for-profit basis, and charitable purposes.
A property used for educational purposes is entitled to exemption from rates if all of the conditions detailed in paragraph 10 of Schedule 4 are met which in summary are;
1. It must be occupied by an educational institution
2. It must be used exclusively for the provision of educational services
3. Otherwise than for private profit;
(a) the institution must not be established or operated for the purposes of making a private profit or be financed wholly or mainly from State funds and
(b) The services in question must be available to the general public with or without a charge being levied.
The position regarding eligibility of operators of childcare facilities for exemption from rates is that in order for a property occupied by an organisation to be exempt under the terms of Schedule 4 of the Valuation Act, 2001, that organisation must be a charitable organisation, that uses its property exclusively for charitable purposes and otherwise than for private profit. The organisation claiming charitable status for the purpose of qualifying for exemption from rates must comply with the definition of "charitable organisation" as stated in PART 1 section 3 of the Valuation Act, 2001.
As a matter of course, the Valuation Office examines all claimant cases on their individual merits by reference to the relevant statutory provisions governing the operation of the Valuation Act as it relates to child-care facilities and all other categories of properties.
Private childcare facilities form part of the rateable valuation base on a nationwide basis. I have no plans to provide for special treatment of these facilities by their exemption from rateability under the Valuation (Amendment) (No. 2) Bill, 2014 as such a change would be quickly followed by demands for similar treatment from other interests involved in the provision of other useful services, which in equity would be difficult to resist. The process could thus substantially reduce local authority revenues, which would have to be made good by imposing a corresponding increase on the remaining ratepayers.
