Dáil Éireann Debate, Wednesday - 26 November 2014
63. Deputy Clare Daly asked the Minister for Public Expenditure and Reform if he will bring in an equitable valuation system for early childhood care and education services which recognise the educational nature of the service provision and the importance of providing space for children to play and learn. [45511/14]
View answer64. Deputy Clare Daly asked the Minister for Public Expenditure and Reform if he will ensure that early childhood care and education services are included and named under schedule 4 of the Valuation Act as relevant property not rateable and that the rateable valuation is only based on commercial activity. [45512/14]
View answer65. Deputy Michael McGrath asked the Minister for Public Expenditure and Reform the position regarding the application of local authority rates to playschool facilities; his plans to introduce a legislation change in the area; and if he will make a statement on the matter. [45533/14]
View answerI propose to take Questions Nos. 63 to 65, inclusive, together.
The Valuation Act, 2001 provides that all buildings used or developed for any purpose, including constructions affixed thereto, are rateable unless expressly exempted under Schedule 4 of the Act. Such exempt buildings would principally include those used for public worship, education and health care provided on a not-for-profit basis, and charitable purposes. In general, the Act maintains the long-standing position that all commercial properties - including all private childcare facilities such as play schools, pre-schools, crèches and Montessori schools - are liable for rates.
Certain childcare and pre-school facilities can be exempt from rates under the terms of paragraph 16 of Schedule 4 of the Valuation Act, 2001, where the organisation is 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.
Similarly, certain pre-school facilities can be exempt from rates where the conditions detailed in paragraph 10 of Schedule 4 are met.
Inconsistency in the approach to the exemption of childcare and early education facilities from rates was raised at Committee Stage of the Valuation (Amendment)(No.2) Bill 2012 in the Seanad with Minister of State, Deputy Simon Harris, who was taking the Bill through the Seanad on my behalf. He undertook to consider what could be done in this regard. As a result, I got Government approval for a Seanad Report Stage amendment to the Valuation (Amendment)(No.2) Bill, to insert into Schedule 4 of the Valuation Act 2001 an exemption from rates for the property of those that provide early childhood care and education on a not-for-profit basis. This amendment was proposed and passed at Report Stage in the Seanad on 20th November 2014. I intend that the Bill will be considered by the Dáil shortly.
