Call for relief on childcare costs
Tax relief for workers using childcare facilities should be introduced.
Calls for such a measure have been made in the annual pre-Budget submissions from Cork Chamber of Commerce.
The submission, made last week to Minister for Finance Brian Cowen, highlights the role of employers in assisting with childcare facilities and states that evidence suggests that businesses with staff who have children under 12 believe the lack of affordable childcare impacts their ability to retain and recruit staff.
The Chamber has called for the introduction of tax relief to the rate of up to €5,000 of income per child for couples who are both earning, and for single or widowed parents who need childcare facilities.
The submission also urges the Government to introduce measures to simplify the tax system and expresses concerns regarding public service and local government charge levels.
The submission stated that in the 12 months to July 2005, there was a 9.9% increase in charges for electricity, gas, landline communications and waste collection.
The chamber added: “Commercial rates and service charges are not linked to ability to pay and have a disproportionate impact on small and medium-sized enterprises, many of which have not benefited from corporate tax cuts.
“Because only the business sector pays commercial rates and other charges, the burden carried by the business sector is excessive.”
The submission concludes by saying that increases in local authority charges have been driven by central Government, due to inadequate funding of local government.
It calls on the minister to address this long outstanding issue.
