Vol. 460 No. 4
16 Mr. Molloy asked the Minister for Tourism and Trade the extent to which new developments have been initiated arising directly from the special tax concessions extended to certain traditional seaside resorts in the Finance Act, 1995; if he will give specific details in respect of each named resort; and if he will make a statement on the matter. [1486/96]
17 Mr. Andrews asked the Minister for Tourism and Trade if he will report on his Department's discussions with the Department of the Environment regarding the infrastructural problems inhibiting development in some pilot resort areas. [1557/96]
I propose to take Questions Nos. 16 and 17 together.
As was indicated in response to similar questions on 5 October and 15 November 1995, the provision of the necessary infrastructure for designated resort areas is a matter for consideration in the first instance by the local authorities.
In this regard I understand that the Minister for the Environment is at present considering proposals in relation to new and improved water and sewerage services at a number of designated resort areas in the context of his Department's 1996 water and sewerage schemes programme.
All reliefs and allowances claimed under the pilot tax relief scheme for certain resort areas in respect of qualifying investment in tourism facilities are a matter for the Revenue Commissioners. The scheme was introduced with effect from 1 July 1995 and I understand that tax returns covering the period since then are not required by the Revenue Commissioners until February 1996, at the earliest, for purposes of corporation tax or 31 January 1997 for income tax. While I understand there has been a significant level of interest to date in the scheme, obviously it will be some time before the benefits become evident on the ground in terms of new or improved tourism facilities.
The whole parliamentary question procedure is not very satisfactory but I realise this is not the time to raise that matter. I asked the Minister the extent to which new developments have been initiated and I do not believe I received an answer to that question. This scheme was announced in last year's budget. We are now 12 months down the road and many meetings have taken place in the resorts to explain the Government's scheme.
It is a shambles.
Twelve months after the scheme was initiated I want to know what has been its effect. How many new projects are being initiated as a result of the incentives the Minister announced, including the details which were put together afterwards and which were explained at these meetings?
As a former Minister for Local Government Deputy Molloy knows well the consideration that must be given before one can proceed to provide a hotel complex, holiday village complex or whatever. It requires some thought on behalf of the promoters. It also requires detailed discussions with their accountants in addition to all the other practical matters that must be taken into account before facilities can be put on the ground.
Having visited a number of resorts since the pilot scheme was announced I know from personal experience there are indications of an intense interest in property and in its movement. A number of environmental schemes which were on stream before the announcement of the scheme by local authorities have commenced and are not strictly related to the pilot scheme. This will be an added advantage to the provision.
Deputy Molloy knows as well as I do that there is a major proposal for Salthill, Galway. I have not seen anything beyond the newspaper reports of it.
What is that?
The Deputy knows more about it than I do. There are major proposals planned also for Tramore, Kilkee, Bundoran, Clonakilty and Westport.
What about Lahinch?
The people of Lahinch are mentioned as well. It is fair to say there will be a great deal of discussion and reports about major facilities before a final decision will be taken on them.
The Minister's answers are ridiculous. Has any proposal been initiated yet as a result of this scheme?
The Deputy should listen to the reply in the first instance. The scheme was introduced on 1 July 1995. The relief is given by the Revenue Commissioners in respect of the project qualifying. The tax returns which have to be submitted by the individual operators in connection with this scheme are not required by the Revenue Commissioners until February 1996 in respect of corporation tax and 31 January 1997 in respect of income tax. It will be some time before one can give an accurate reading on this. All I can say is that the Deputy is as wise as I am, if not wiser. He is aware of the interest in the movement of property on the ground.
I can only come to the conclusion that the Minister is not aware of developments initiated as a result of the introduction of the scheme.
The Deputy is wrong.
Will the Minister give us details of the scheme?
Let me repeat that any developer or individual may apply for a development in any of these resort areas and if they wish to be included under the relief given by the scheme, they do not have to submit their documentation to the Revenue Commissioners until February of this year for corporation tax purposes or until January 1997 for income tax purposes. I cannot give the Deputy an accurate reading of what relief will be sought from the Revenue Commissioners until the documentation has been submitted to them. However, I am aware of planning applications and the movement in the property market.
My question did not refer to the relief being granted by the Revenue Commissioners but to the Minister's knowledge of the effect of the scheme and the developments initiated as a result of it. Members welcomed the scheme and hoped it would be a success but its terms were drawn up subsequent to that by the officials. I am seeking to establish if the minutiae of the scheme are an obstacle to people participating in it because that is what I hear. I had hoped that the Minister for Tourism and Trade, who announced the scheme, would be able to inform the House 12 months later of the level of development resulting from it. I am not talking about developments that have been completed because that would not have happened under this scheme.
The scheme was initiated between the Departments of Finance and Tourism and Trade following discussions with the Revenue Commissioners and was drafted quite generously. If Deputy Molloy has specific evidence of the minutiae of the scheme causing difficulties, I will certainly be glad to have those difficulties explained to me in writing. I have had a number of queries clarified quite quickly by the Department of Finance and the Revenue Commissioners. I will be happy to have any difficulties the Deputy has clarified if he submits them to me in writing.
