THE Minister for Finan was told about the imposition of VAT on creches three months ago but refused to meet creche operators to discuss the issue. It has also emerged that the Government could have zero rated child care facilities for VAT up to 1991 but failed to do so.
Mr Quinn received a letter written on November 26th requesting a meeting from Ms Martina Murphy, chairwoman of the National Children's Nurseries Association.
On January 3rd his private secretary wrote to Ms Murphy and told her that "the Minister regrets that due to a heavy schedule he is unable to meet with you".
At the end of January, Mr Quinn wrote to a member of the NCNA who had contacted him separately about VAT on childcare services.
"I have had the matter looked into," he wrote. "The position is governed by European VAT law with which Irish VAT law must comply. Under the EU Sixth VAT Directive, member states may retain the zero rates that they had in place on 1st January 1991, but they are prohibited from introducing new zero rates. As child care services were not at such a rate at that time, it is not open to me to zero rate these services at this stage.
"In regard to VAT exemption, the directive makes provision for the exemption of education services, but this exemption does not extend to child care services or nurseries," he wrote.
The NCNA also raised the matter with the Minister for Equality and Law Reform, Mr Mervyn Taylor.
This week, just hours into a furore sparked by an Irish Times report on the issue, the Revenue Commissioners announced that they were suspending the seeking of VAT payments from private creches pending a decision on whether, or to what extent, commercial child care services were exempt from the tax.