I move:
That leave be granted to introduce a Bill entitled an Act to amend the Valuation Act 2001 in order to provide that property occupied for the provision of early childhood care and education, where such is provided either otherwise than for profit or subject to Core Funding and caps on all provision at Early Childhood Care and Education (ECCE Programme) rates, and property consisting wholly or partly of a building, which is used partly as a dwelling to a significant extent and occupied for childminding services, should not be rateable; and to provide for related matters.
I will share time Deputy O'Shea. Despite the frequent howls from the hurlers on the ditch, this country gets it right on quite a lot of things. Sometimes it gets things very right, such as ECCE. Ireland got it right when it introduced two years of free preschool education and, most critically, it got it right for children. The first five years of a child's life shapes 90% of their development. Our preschool education programme, taken up by 96% of eligible children throughout the country, improves child outcomes, reduces poverty and enhances lifelong employment prospects. Something that is not right is a legal interpretation of valuation law that could shut down ECCE services.
ECCE-only childcare services have traditionally been exempt from commercial rates on the basis they are an educational service, which they are. These are preschool services receiving Government funding of €69 per child per week, up to €82 with core funding and a base rate of €14,400 per year. I know these services and I know that at this rate of subvention they are very far away from being profit earning. I also know something much more important, which is that they are even further away from being profit driven. These services and the people running them are deeply committed to their sector and their communities, and they are working on very tight margins. They do not need to be told that because of the legal interpretation of a State agency they now have to pay commercial rates, but that is what is happening.
In 2015, the law was amended requiring that services must be established and operated on a fully not-for-profit basis. Now, it seems that on foot of judgments by the valuation tribunal, Tailte Éireann has adopted a particular interpretation of the law that means some ECCE-only and ECCE services that offer short paid aftercare capped at ECCE rates are deemed to be for profit. This interpretation leading to rates for preschool services, and potentially for childminders, is the opposite of right; it is wrong. It is happening in Cork, Waterford and Kildare and it will come down the tracks for preschool services throughout the country. It will lead to ECCE services shutting down.
The contradiction is stark. One arm of government is getting it right and funding ECCE and childcare, and wants to expand services, while another arm of the State is taking action that could do the opposite. Ultimately this seems to be an issue for the law. It is an issue for us as lawmakers. The law must be changed, and fast, and that is what the Bill aims to do. It will ensure that ECCE-only services, ECCE aftercare services capped at ECCE rates and childminders are exempt from commercial rates. It aims to do the right thing for the ECCE programme. It aims to do the right thing for small childcare providers, for children and for parents. There is a problem here that needs to be solved and the Bill proposes solutions. I look forward to working with all sides of the House to get the right solution.
