valuation rates as a result of yesterday's passage of the Land Valuation and Tax Amendment Act 1998.

And Senators called on the facilities to pass on the savings to parents.

Sen. Allan Marshall (UBP) said day care facilities and nurseries would be excluded from the draft valuation list drawn up by the Ministry of Finance.

"If you are not on the draft valuation list, you are excluded from the tax,'' he explained.

Sen. Terry Lister (PLP) said the amendment was a step in the right direction and would help make daycare more affordable.

"This is all part of the process of making day care a viable option for all,'' Sen. Lister said. "This may be a small step but it is a step towards helping single working mothers.'' And he suggested that the Government consider subsidising single parents who had multiple children in nursery school.

Comunity Affairs Minister Sen. Yvette Swan urged the beneficiaries to pass on the tax saving to parents.

But Sen. Walwyn Hughes (Ind) said the nurseries and day-cares may not see any of the savings themselves if they rent their facilities from someone.

"A lot will have to do with the landlords since many places rent their facilities. It will be interesting to see if the landlords pass on the savings to the nursery tenants.''