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Dáil Éireann díospóireacht -
Wednesday, 28 Nov 2001

Vol. 545 No. 2

Other Questions. - Tax Incentive Schemes.

Billy Timmins

Ceist:

29 Mr. Timmins asked the Minister for Finance if he will create a tax incentive for the development of skateboard parks in the forthcoming budget; and if he will make a statement on the matter. [29862/01]

As the Deputy will appreciate, in accordance with the usual procedure in the week prior to the budget, it would not be appropriate for me to comment one way or the other in regard to the suggested taxation changes referred to by the Deputy.

The Minister should make an exception.

I might make an exception for skateboards.

I will however outline the current position with regard to skateboard parks. Under the current provisions of the Taxes Consolidation Act, 1997, section 284, if a person carries on a trade of operating a skateboard park he or she can write off expenditure incurred on any plant or machinery which is in use in the park, over a five year period at the rate of 20% per annum.

Additionally, if the park is located in a tax incentive area which is approved for capital allowances for commercial premises, capital expenditure incurred on the construction or refurbishment of such a park may qualify. These allowances are generally available at a rate of up to 50% of the expenditure in the first year and at a rate of 4% in remaining years for the balance of the expenditure.

Finally, I draw the Deputy's attention to just one of the numerous measures by which this Government provides assistance to youth and sports activities in the country. Under the national lottery funded sports capital programme, which is administered by the Department of Tourism, Sport and Recreation, grants are allocated to clubs and organisations for the development of sports and recreational facilities. Details of the 2002 sports capital programme were announced by the Minister, Deputy McDaid, last weekend and it will be open to local groups involved in the development of such facilities to apply for funding under the scheme.

I thank the Minister for his very detailed reply. I was not aware that tax relief was available on the equipment used in skateboard parks.

Does the Minister agree that very few fiscal measures are in place to encourage the development of facilities for children? This is one of the difficulties encountered by public representatives day in and day out. Will the Minister examine the concept of extending relief on the capital cost of construction to skateboard parks in non-tax designated areas? To the best of my knowledge there is only one skateboard park in the country.

The Minister faces a difficult budget. I am giving him an opportunity, with a very small innovative measure, to take the spotlight off the rest of his budget. He could call this the skateboard clause. It would give him a way out, in more ways than one. This is the Minister's opportunity to include a skateboard clause in the budget.

Free skateboards.

That latter part of the Deputy's suggestion is very good. I can imagine the representatives of CORI flying into the Dáil on one of those things, to praise me I am sure.

I understand that there are problems in parts of Deputy Timmins's constituency with regard to the unauthorised use of public spaces for skateboarding.

And there is no emergency plan.

Deputy Timmins has made a number of complaints regarding this activity in certain parts of his county, and I have sympathy with him in that regard. The Deputy has pointed out that there is only one commercially operated skateboarding park in the State. He will be delighted to hear that it is located in Drumcondra, an important place in political life.

Is it slippery?

Capital allowances on plant and machinery used in a skateboard park would qualify for the normal wear and tear which, since last year's Finance Act, is now at a straight 20% per annum, written off over a five year period.

I do not consider the case has been successfully made for tax incentives for skateboard parks in non-tax designated areas. However, I am always willing to consider new ideas and I will look at this in the future.

Many children from Wicklow come into Dublin at weekends to skateboard in public areas in the Baggot Street area. Skateboard parks are a very successful concept in the United States and it is one concept we should examine.

The Minister of State, Deputy Cullen, tells me that people come to Dublin from as far away as Waterford to skateboad at weekends.

I hope they do not come by train.

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