Vol. 424 No. 5
52 Mr. Barry asked the Minister for Finance the proposals, if any, he has to extend the deadline beyond May, 1993, for the urban renewal incentives in designated areas in view of the fact that currency fluctuations and the recession have combined to make it difficult for developers to put a complete package together in time; and if he will make a statement on the matter.
The main impact on construction activity of the recent exchange rate upheaval is likely to come via the associated rise in interest rates. As I have said elsewhere, I expect the recent increases in official and retail interest rates will only be temporary and that in a few months at most retail rates could fall back to previous levels. An encouraging sign is that already wholesale money market rates are well below their peak.
Given the temporary nature, therefore, of the current disturbance in the markets, I have no proposals to extend the existing deadline for the urban renewal incentives beyond the provisions made in section 29 of this year's Finance Act. This allowed for final extensions to the current timescales applying to the urban renewal incentives in the Custom House Docks area and in the designated areas in general. In the case of the designated areas in general the final extension is for one year, up to 31 May 1994, with the proviso that "new build" developments must have their foundations fully laid before 1 June, 1993. The extension was given to allow for an orderly cessation of the incentives. In the case of the Custom House Docks Area, and Temple Bar, the termination dates are 24 January 1997 and 5 April 1996 respectively.
