Renua proposes tax break for childcare

Creche network would be paid for through property tax via a social cohesion fund

Renua Ireland has proposed that parents should be entitled to tax relief to help cover the cost of childcare.

In its latest policy proposal, the party said its long- term aspiration is for the creation of a network of community creche facilities across the State that provide good quality childcare at affordable prices.

This would be paid from a “social cohesion fund”, which itself would draw funds from property tax revenue.

In the interim, however, Renua has proposed a tax break for parents, which it estimates would cost the Exchequer €500 million a year.

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“The scheme will be available to creche operators and parents on an opt-in basis,” the party said in a statement. “The tax relief will be shared with 20 per cent falling on the service provider and the remaining 80 per cent falling on the service user.”

The policy was launched by party TDs and Senators, including Renua leader Lucinda Creighton, at Leinster House on Tuesday.

Inflexible leave

Another novel aspect of the policy is a device to tackle what it describes as “unnecessary inflexibility around maternity leave in Ireland”.

“After the birth of a child, parents should be allowed to arrange their lives as they see fit. This could, for instance, involve each parent taking three months of leave prior to returning to work.”

Ms Creighton said the issue of childcare was a huge one, and that the response to date was inadequate.

“We are interested in supporting working families. It is a major crisis and we consider [this response] to be on a par with the radical decisions that were taken around free education for younger people in the 1960s.”

Harry McGee

Harry McGee

Harry McGee is a Political Correspondent with The Irish Times