Dáil Éireann Debate, Friday - 16 September 2016
4. Deputy Michael Healy-Rae asked the Tánaiste and Minister for Justice and Equality her views on a matter (details supplied) regarding child care owners here; and if she will make a statement on the matter. [25402/16]
View answer6. Deputy Pat Deering asked the Tánaiste and Minister for Justice and Equality if consideration will be given to readdressing the classification of preschools as educational under rates valuation in the upcoming budget preparations; and if she will make a statement on the matter. [25782/16]
View answerI propose to take Questions Nos. 4 and 6 together.
The Commissioner of Valuation is independent in the exercise of his duties under the Valuation Acts 2001 - 2015, and the making of valuations for rating purposes is his sole responsibility. I, as Minister for Justice and Equality, have no function in that regard.
The Valuation Acts provide that all buildings used or developed for any purpose are rateable unless expressly exempted under Schedule 4 to the Acts. 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. The Acts maintain the long-standing position that commercial facilities - including all private childcare facilities such as play schools, pre-schools, creches and Montessori schools - are liable for rates.
However, certain pre-school facilities are exempt from rates under paragraph 16 of Schedule 4 which provides that a property occupied by a charitable organisation and used exclusively for charitable purposes and otherwise than for private profit is exempt from rates. Similarly, certain pre-school facilities can be exempt from rates where the conditions set out in paragraph 10 of Schedule 4 are met, i.e. it must be occupied by an educational institution and it must be used exclusively for the provision of educational services, otherwise than for private profit.
It should be noted that reclassifying pre-school facilities as educational under Schedule 4 to the Valuation Acts would not in itself result in such facilities being no longer liable for rates. However, the Valuation (Amendment) Act 2015, which was commenced on 8 June 2015, contains an amendment to Schedule 4 which provided for a new exemption from rates in respect of community-based childcare facilities which are operated on a not-for-profit basis.
Private childcare facilities which are operated for profit form part of the rateable valuation base on a nationwide basis. The exemption from rateability of such facilities would reduce local authority revenues, which if it were not to entail an increase in Exchequer funding for local authorities, would have to be made good by imposing a corresponding increase on the remaining ratepayers. Accordingly, and in line with the long-standing position that commercial facilities are liable for rates, there are no plans at this time to provide for any exemptions from valuation in respect of for-profit childcare facilities.
