Dáil Éireann debate -
Thursday, 19 Dec 1996

Vol. 473 No. 3

Written Answers. - Tax Incentives.

Mary Wallace

Question:

41 Miss M. Wallace asked the Minister for Finance the tax incentives available to people wishing to develop in the designated areas of the County Meath seaside resorts of Laytown and Bettystown; the date upon which these incentives commenced; the final date for inclusion; the amount of interest and take-up to date in this regard; and if he will make a statement on the progress, if any, of these incentives as they affect County Meath seaside resorts. [25045/96]

Mary Wallace

Question:

42 Miss M. Wallace asked the Minister for Finance the tax incentives available to people wishing to develop in the designated areas of the County Meath seaside resorts of Mornington and Gormanstown; the date upon which these incentives commenced; the final date for inclusion; the amount of interest and take-up to date in this regard; and if he will make a statement on the progress, if any, of these incentives as they affect County Meath seaside resorts. [25046/96]

Minister for Finance (Mr. Quinn)

I propose to answer Questions Nos. 41 and 42 together.

The areas in Meath qualifying for the tax reliefs for the renewal and improvement of certain resort areas are described in the Third Schedule to the Finance Act, 1995, as follows:

1. That part of the District Electoral Division of Julianstown comprised in that part of the Townland of Mornington bounded on the north by a line commencing at the high water mark and continuing in a westerly direction along the northern boundary of LaytownBettystown Golf Links to a point where it intersects with the boundary of the Townland of Donacarney Great; and those parts of the Townslands of Betaghstown, Sevitsland, Ministown and Ninch which are situated to the east of the Dublin/Belfast railway line.

2. That part of the District Electoral Division of Julianstown comprised in the Townland of Mosney and that part of the Townland of Briarleas situated to the east of Local Road (County Road 438).

Gormanstown is not a designated area for the purposes of the scheme.

The scheme commenced on 1 July 1995 and continues to 30 June 1998. The detailed provisions of the scheme are set out in sections 46 to 53 of the Act as amended by section 30 of the Finance Act, 1996. It consists of the following tax incentives:

—accelerated capital allowances in respect of capital expenditure incurred on the construction of certain industrial buildings, vis hotels, holiday camps and holiday cottages, and, subject to conditions, on the refurbishment of such buildings. The allowances consist of an initial allowance (available to both lessors and owner-occupiers) of 50 per cent, annual allowances of 5 per cent and accelerated annual allowances, commonly referred to as free depreciation (available to owner-occupiers only), of up to 75 per cent. Where an initial allowance is claimed there is no entitlement to free depreciation.

—capital allowances, similar to those applying to hotels, holiday camps and holiday cottages, in respect of capital expenditure incurred on the construction or refurbishment of buildings or structures which are used in the operation of certain tourism facilities. The facilities in question are tourist accommodation registered or listed under the Tourist Traffic Acts, e.g. B+B accommodation, and such other facilities as are approved of for the purposes of the relief by the Minister for Tourism and Trade in consultation with the Minister for Finance.

—a double rent allowance as a deduction in computing trading income for the first ten years' rent arising under new leases of certain buildings or structures.

— reliefs for 100 per cent of construction expenditure incurred (i) on the provision, of certain rented residential accommodation, (ii) on the conversion of certain buildings into rented residential accommodation, and (iii) on the refurbishment of certain rented residential accommodation. These reliefs can be set against all rental income of the claimant in computing liability to tax under Case V of Schedule D but apply only where the accommodation is available primarily for letting to tourists.

I am advised by the Revenue Commissioners that information at the level of detail sought by the Deputy with regard to the amount of interest and take up of the incentives to date would not be available from the records. However, in relation to the three designated areas mentioned, the Revenue Commissioners have obtained the following details from the Department of Tourism and Trade — there is a development of seven self-catering holiday cottages in Laytown, a development of 26 self-catering holiday cottages, a development of three self-catering houses and rebuilding of a licensed public house-restaurant in Bettystown. The Department of Tourism and Trade has no knowledge of any development in Mornington.

With regard to the progress of the incentives in the designated resort areas in general, I understand that the Department of Tourism and Trade is at present compiling a comprehensive report, in conjunction with the Regional Tourism Organisations, on tourism developments resulting from the scheme. This exercise is ongoing and is not expected to be completed for some time.