State-funded childcare providers have received commercial rates bills running to thousands of euro despite an intention that not-for-profit crèches be exempt from such demands.
The Government is considering changing the law to stop Tailte Éireann, the State agency that calculates the rates on commercial properties, from making childcare providers liable for such bills.
Since 2015, childcare providers that only offer State-funded early childhood care and education (ECCE), or who only provide childcare on a not-for-profit basis, have been offered an exemption from commercial rates. For-profit private providers have always been billed for commercial rates.
However, it has emerged that State-funded ECCE services have been charged bills of up to €7,000 by their local authorities following valuations by Tailte Éireann due to what the Department of Housing described as an “ambiguity” in the law.
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It is understood that this followed a change in the legal approach adopted by Tailte Éireann and the Valuation Tribunal.
The bills were an unexpected charge for many providers, who had been operating for years without paying commercial rates. In some cases, smaller childcare providers operating from their homes had been told their properties would be assessed for commercial rates.
The issue was raised with the Government by Fine Gael TD Emer Currie.
Minister of State at the Department of Housing John Cummins has tasked his officials with examining how the law can be changed to stop such crèches from being sent commercial rates bills. According to the department, the bills have threatened the “viability” of some childcare providers.
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“It is unsatisfactory that ECCE-only providers who have not previously been charged commercial rates are now receiving rates bills from Local Authorities on foot of valuations by Tailte Éireann,” Cummins said
“I recognise the significant pressure that such providers are already under and this is a matter that I want addressed. I have asked my officials to work through what changes are required to resolve it.
“If the Valuation Act needs to be amended to provide clarity and ensure this issue cannot arise, we must be prepared to take the necessary steps to do so.”
