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Dáil Éireann díospóireacht -
Tuesday, 18 Feb 2003

Vol. 561 No. 4

Written Answers. - Tax Reliefs.

Michael Ring

Ceist:

254 Mr. Ring asked the Minister for Finance his plans to provide tax designation for the Knock International Airport Office Park; and if he will make a statement on the matter. [4334/03]

The 1997 Finance Act made provision for a scheme of tax relief for areas adjacent to regional airports along the same lines as the relief then available under the enterprise areas scheme. The scheme provided for accelerated capital allowances and double rent relief for lessees of qualified buildings. The scheme was queried by the European Commission under state aid rules and the approval granted by the Commission in 1998 imposed certain specific conditions. The qualifying period was required to end on 31 December 1999 in order to conform with the end of the existing general regional aid framework throughout the European Union. The Commission ruled out the awarding of double rent relief in respect of any of the proposed enterprise areas adjacent to the regional airports. The Commission also requested the Irish authorities to submit details of individual airport projects to the Commission for separate approval by it. The proposal in relation to a cargo handling operation at Knock Airport was approved by the Commission on 26 October 1999 shortly before the expiry date for the scheme of 31 December 1999.

New designation of a business park at Knock Airport could not take place in isolation but would need to be undertaken as part of a general scheme of designation for regional business parks and would have to be made available in other areas of need apart from Knock. Such a scheme would have to be undertaken in the context of objective criteria, which would justify the selectivity of any areas designated. Apart from this, the scheme would need to be submitted to the European Commission for approval under state aid rules. Recent experience of a much more rigorous examination of fiscal state aids by the Commission indicates that approval for any such scheme could not be guaranteed. In the recent budget, I confirmed the termination dates for a range of incentive schemes including the urban renewal, rural renewal and park and ride schemes. This announcement was made in the context of the general policy of broadening the tax base in an effort to keep the current low rates of income and personal taxation. For all of these reasons, I have no plans at present for the introduction of such a scheme of designation for regional business parks.

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