THE GOVERNMENT WILL legislate to ensure that providers offering the State’s free childcare programme are exempt from costly commercial rates bills.

Legislative changes are being examined to give certainty to providers offering Early Childhood Care and Education (ECCE) after it emerged it emerged some had been issued commercial rates bills for ECCE only services for the first time, with some bills costing thousands of euros.

Minister of State at the Department of Housing, Local Government and Heritage John Cummins has tasked officials to explore how to make the necessary clarifications that ECCE only services are treated in the same way as not-for-profit childcare providers when it comes to commercial rates.

He has received examples from Fine Gael TD Emer Currie showing ECCE-only services that provide State funded pre-school education receiving bills up to €7,000.

The minister has highlighted that under the Valuation (Amendment) Act 2015 an exemption was included to provide for an exemption for childcare providers that exclusively provide early childhood care and education and are established and operated on a not-for-profit basis.

Ambiguity around ECCE-only services which is 100% State funded has resulted in some providers being issued with commercial rates bills and, in some cases, has led to substantial charges which have threatened the viability of much-needed services, he said. 

Cummins said 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”.

“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,” he said.