Vol. 498 No. 4
283 Mr. Noonan asked the Minister for Finance if he will restate his budgetary proposals on child care; the way in which he envisages each proposal impacting on child care services; if he will make further proposals in the Finance Bill; and if he will make a statement on the matter. [27818/98]
As I said in my Budget Statement on 2 December 1998, the Government is conscious of the growing wish for a recognition of child care needs in the tax system. The question of child care tax relief raises important and complex issues. There is the question of equity between parents who stay at home to care for children and those who have to meet additional childcare expenses when they go out to work. There is also a need for a balanced treatment of those who are in the tax system and those who rely on social welfare benefits and for finding the right balance between measures to help towards the cost of child care and measures to improve the supply and quality of child care facilities to meet the growing demand.
The Government has discussed this area in some detail and proposes to examine the matter further. In doing so, it will take into consideration the recommendations of the partnership 2000 working group on child care which has not yet finalised its report.
As a means of facilitating and encouraging the supply of child care facilities, the Government has decided that the provision of cre che facilities by employers will not be subject to a charge to income tax in the hands of employees as a benefit-in-kind. Furthermore, the Finance Bill will also provide for capital allowances to allow for the write off of capital expenditure incurred in connection with buildings or premises constructed or used by employers to provide child care facilities for their staff. This capital allowances regime will also extend to providers of child care services generally in the community.
Those with children will also be helped by increases in child benefit which I also announced in my Budget Statement.
This is a complex and sensitive area which, as I have already stated, the Government wishes to examine further, taking into account the results of the various major studies already completed and still ongoing. I do not expect to be introducing any major new initiatives in the Finance Bill over and above those announced in my Budget Statement.
