2026-06-23

10. Deputy Emer Currie asked the Minister for Children, Disability and Equality for an update on the actions being taken by her Department to support ECCE-only services that are receiving commercial rates bills; and if she will make a statement on the matter. [47448/26]

The early childhood care and education scheme, ECCE, is transformative for children, particularly those from low-income families and disadvantaged backgrounds. The State now offers two free years of pre-school, 15 hours per week and three hours per day. Ninety-six percent of children take it up. The Government has said it wants to get that to 100%. Why are we allowing the imposition of commercial rates on ECCE services and on ECCE-only services, which could potentially close them down?

I thank Deputy Currie. She is correct when she says that 96% is regarded as a very high uptake of the ECCE services, but it is our aspiration to reach 100%. I am aware that a number of ECCE-only services have been receiving rates-payable notifications from their local authorities. The Department, and others, have previously advised the sector that ECCE-only services are exempt from paying commercial rates under paragraph 10 of Schedule 4 of the Valuation Act 2001. Given the importance of early learning and childcare for children, families and communities across the country, I am giving this matter my full attention. I have engaged with my Cabinet colleague, the Minister for Housing, Local Government and Heritage, Deputy James Browne, on a number of occasions. On foot of this engagement, the Department of children and the Department of housing have jointly sought formal advice from the Office of the Attorney General on this matter. As the Deputy is aware, this is not within the gift of the Department of children; we have no role whatsoever in relation to rates. It is a matter outside of our remit. However, I am very pleased that the Department of housing has agreed on a joint submission to the Office of the Attorney General. The Office of the Attorney General is now looking at this particular issue and has informed the Department that it has sought advice from external counsel on this matter, very specifically. On receipt of this advice, I will continue to engage with the Attorney General and the Minister, Deputy Browne, with a view to achieving a resolution as soon as possible. Deputy Currie is correct that it is really important we get absolute clarity on this matter. It is a concern and a worry to those who are providing the ECCE services here. We are giving this every consideration. I want to express my gratitude to the Attorney General who has sought this external advice. Officials in the Department are also engaging with colleagues in the Department of Housing, Local Government and Heritage to explore the solutions that might be available to rectify this situation.

When Tailte Éireann was before the housing committee a couple of weeks ago, I raised this matter with the representatives. They said they had taken legal advice via the Chief State Solicitor's Office and the Office of the Attorney General and it was unequivocal that ECCE services are rateable and are inherently operating for profit. This means that all ECCE services, including 100% Government-funded stand-alone ECCE services that receive no parental fees, are fair game for commercial rates, which in turn means that commercial rates for ECCE services are coming to every county in Ireland. Three-hour preschool services that do not charge parents any fees are going to be liable for commercial rates. I do not believe they should be treated like commercial businesses. I fear this is going to close down services. It is going to reduce childcare places. ECCE-only services, I believe, are already in decline. Some of these services have reached out to me saying they are potentially closing in June and will not reopen in September.

As I previously outlined, there was a clear understanding. The Department is very clear, based on correspondence and the understanding it had received previously from its sister Department, that ECCE-only services were exempt from paying commercial rates under paragraph 10 of Schedule 4 of the Valuation Act 2001. Notwithstanding that, it is not within the gift of the Department to set commercial rates for early learning and childcare service providers. However, I want to acknowledge that there has been an absolute openness from the Minister for housing to seek a resolution here. There has been a particular willingness from the Attorney General to engage in this matter. Indeed, the Attorney General has confirmed that he is seeking external advice on this. I want to be able to furnish at the earliest possible point information to the early learning and childcare sector and, indeed, this House on the update we receive from the Attorney General at his earliest convenience.

I thank the Minister. I know she is not responsible for this and it is something that has really come to light. The legal implications of the valuation tribunal and a case in the High Court have had an impact since 2024 but there is an urgency about this. Legislation seems to be required. I have worked on legislation. Will the Minister consider working with me on that to deal with this in an urgent way? Part of that legislation also includes sessional services that offer 30 minutes of care to support parents with flexibility but they are being penalised for it. As part of that legislation, I have included that if they operate those 30 minutes at ECCE rates of €4.60 per hour, they too should be exempt. This is affecting services in four counties but it is coming to more counties. I have seen bills ranging from €1,000 to €10,000 for ECCE-only services. These services are 100% Government-funded. Why would the Government give them funding to operate and be viable and then, through another arm of the State, charge them commercial rates?

It is important to confirm again that we need to take this step by step. We are currently engaging with the Department of housing, the Minister for housing and the Attorney General to see if there is any avenue to resolve this matter in the context of current legislation.

Okay.

That is the first step. I appreciate what the Deputy is doing; I absolutely do but I will take it step by step. I will wait for the adjudication of the Attorney General. He has given it his personal attention. He is also seeking external advice and we will see what we can do within the current legislation. I am also aware that a number of childminding services have also received rates payable notifications from their local authorities and that has also been a huge concern. I have also stated previously that under no circumstances do I believe childminders should have their homes assessed for commercial rates. We did receive from Tailte Éireann a positive response where it confirmed our previous understanding that childminders are only likely to be charged rates if they have space dedicated solely to their childminding business and that the large majority of childminders who use the normal family homes in the home for childminding are, therefore, unlikely to be charged any rates at all.