Vol. 456 No. 5
14 Mr. Browne (Wexford) asked the Minister for Tourism and Trade the progress that has been made under the pilot relief scheme for certain resort areas; and whether any significant obstacles have been encountered by projects under the scheme. [14065/95]
33 Mr. Killeen asked the Minister for Tourism and Trade the progress which has been made under the pilot relief scheme for certain resort areas; and whether any significant obstacles to projects under the scheme have been encountered. [14035/95]
49 Mr. Molloy asked the Minister for Tourism and Trade if the response to the seaside resort tax designation scheme announced in the 1995 budget has been satisfactory; if there have been many requests for extensions of the scheme; and if he will make a statement on the matter. [14082/95]
I propose to take Questions Nos. 14, 33 and 49 together.
The tax relief scheme for certain resort areas, announced by the Minister for Finance in his 1995 budget speech, applies on a pilot basis for three years from 1 July 1995. I am satisfied that there has been a significant level of interest in the scheme to date and promotional seminars which have taken place in the resorts have attracted large attendances. However, it will be some time before qualifying investments are put in place and the benefits of the scheme become evident on the ground in terms of new or improved tourism facilities. No significant obstacles in relation to projects under the scheme have been brought to my attention.
Since the passing of the Finance Act, there have been numerous requests to the Minister for Finance and myself to extend the geographical coverage of the scheme. While such requests are primarily a matter for consideration by the Minister for Finance, it is important to recall that the scheme is a pilot one and has only recently come into operation. It would, therefore, be premature to make any decisions at this stage in relation to extending the geographical coverage of the scheme.
Is the Minister aware that developments have been unable to proceed in Lahinch, County Clare, and at other locations because the necessary infrastructure, such as the water supply and sewerage system, is inadequate? While Clare County Council supports the scheme it is unable to grant planning permission for a substantial number of developments because of this. Will the Minister exert pressure on his colleague, the Minister for the Environment, to ensure that this excellent scheme reaches its full potential in all areas?
I hope the scheme — I am sure the Deputy was delighted that Kilkee and Lahinch were included — will take off countrywide. This will place added burdens on the local authorities in terms of the provision of the necessary infrastructure. I do not know at what stage the water and sewerage schemes in either Kilkee or Lahinch are at, but I am sure the representatives from County Clare will approach the powers that be in the Department of the Environment to ensure that the matters are dealt with. I genuinely hope that this scheme proves worthwhile. The Department of Finance and the Revenue Commissioners were generous in the way they concluded their business. This scheme presents a tremendous opportunity for a large number of small resorts. We look on the 15 chosen as examples of what can happen as a result of a good Government initiative.
(Wexford): While I accept this is an excellent scheme what contact has the Minister had with local authorities to promote it? The feedback from the Courtown area is that little interest has been shown in the scheme to date. The local authorities do not seem to be promoting it in the way they should.
The purpose of the scheme is to give towns an opportunity to provide new facilities and, in some cases, to be transformed from being dilapidated to a modern seaside resort. I have attended a number of seminars in places such as Clonakilty, Youghal and Bundoran, which were heavily attended. Tax accountants in particular are keen to promote the scheme because of the strong incentives provided. I am surprised to learn, therefore, that little interest has been shown in the scheme in Courtown as I was lobbied strongly by people in Wexford, the Deputy included. I hope the local authorities in that county understand the implications fully as the scheme is a good one and Courtown would certainly benefit. If it was indicated to me that it did not want to be included, I would have a list of substitutes as long as my arm.
(Wexford): There is no question of Courtown not wanting to be included in the scheme, but it seems the local authority is reluctant to promote it. The main reason for this is the lack of a proper sewerage system in the town where hundreds of planning applications have been refused in recent times. There is a need for the Minister and the Minister for the Environment to consider how this problem can be resolved as quickly as possible.
The commercial banks and a large number of tax firms have produced and circulated brochures. The Department of Tourism and Trade will shortly launch an official brochure to spread the message to places such as Courtown and those with an interest in making an investment under the scheme. The Minister for the Environment who comes from County Wexford may be interested in grappling with the problems in his locality. I understand that the resources of local authorities will come under increased pressure but when the full effects of the scheme are known there will be a clamour for proper development. It is the responsibility of a local authority to set quality standards for planning and to plan for future development from the point of view of sewerage, electricity, water supply and so on. I share the Deputy's concern that there is never sufficient money to go around. I hope Courtown will be a prime example of what can emerge from a good initiative like this. I do not know if the local authority has interested itself in the scheme to date but I am sure it will do so.
One major promoter brought a proposal to me for a £20 million development in an area not too far from the Deputy's area. There is increased interest in property acquisition along the west coast. The scheme was introduced in July so it is a little early to see the results of it. However, people are interested in investing in these areas and are anxious to know what facilities will be provided. I have great faith in the scheme and look forward to seeing Courtown as a prime example of how proper development should take place.
As the Minister said it is a three year pilot programme. Clare County Council supports the scheme and there has been phenomenal interest in Kilkee and Lahinch. However, there is a problem with infrastructure which the county council does not have the resources to address. I urge the Minister to assess the scheme and examine the extent to which lack of infrastructure has an adverse effect on it. Sufficient resources should be provided to enable these areas develop.
I was a member of a local authority for 20 years and constantly advised planners to have schemes ready for submission to the Department of the Environment. Much work must be done on these developments. I am sure the Minister of State, Deputy Carey, is up to date with the different problems experienced in Kilkee and Lahinch. I hope local authorities get their act together as far as development is concerned. They will have a sympathetic ear. I hope they will use the scheme as it was intended — to enable areas help themselves rather than foster a grant handout mentality. If they have proper tourist facilities they will attract tourists to their areas and provide jobs for themselves and their children. The economic benefits of that will be of immense value to future generations.
