PARENTS could face increases of £4 to £12 a week in child care costs as new regulations for preschool services are implemented, a body representing children's nurseries has warned.
Still higher increases could be on the way if nurseries are forced to pay VAT, says the National Children's Nurseries' Association.
The regulations came into effect at the start of this month. People running pre school services for children under the age of six have until the end of June to notify their regional health board.
The association's chairwoman, Ms Martina Murphy, says she welcomes the regulations but "we would have concerns. We will have to upgrade premises in the majority of cases and there will be an increase in costs".
She estimates that costs could rise by 10 to 15 per cent. Present charges range from £50 to £80 a week in Dublin. The charge is usually lower outside the capital, she says.
The owners of a creche in Dublin, who did not wish to be named, said that the extra cost to parents of implementing the new regulations could be as high as £25 a week.
Ms Murphy said that, apart from the cost of meeting the new regulations, "a few situations have arisen in a couple of creches where VAT inspectors have come in and sent VAT bills". There's an EU directive that says child care services are VATable."
However, education is not liable to VAT and, she says, the association would argue that, because very young children are at an important developmental stage, all pre school services should be seen as performing an educational function and be free from VAT.
If increased charges are to be avoided, she says, three measures should be implemented tax relief for parents, a one off capital grant to help pre school services meet the new regulations and an exemption from VAT.