Vol. 477 No. 4
3 Mr. Killeen asked the Minister for Tourism and Trade the plans, if any, he has to review the tax incentive scheme for certain resorts; the recommendations, if any, he has made to the Department of Finance to extend the scheme to other areas; whether he assessed the impact of the scheme; and if he will make a statement on the matter. [9265/97]
As the Deputy is aware, the Finance Act, 1995, made provision for a pilot tax relief scheme for certain resort areas to apply on a pilot basis for three years from 1 July 1995. The purpose of the scheme is to renew and update the tourist amenities and facilities in the areas designated. The 15 areas designated were selected to give an even spread around the coast of designated resort areas.
From time to time I have consulted the Minister for Finance, who has primary responsibility for the scheme, about the possibility of extending it but we have agreed not to make any changes to its scope or to designate any new areas until the present three year pilot period has elapsed and a full evaluation has been completed. In this context, ongoing meetings are at present taking place between my Department, the Revenue Commissioners and Bord Fáilte with a view to evaluating the impact of the scheme. The evaluation is not expected to be finalised until later in the year and meanwhile it is simply too early to say what its outcome will be.
Approximately how many representations have been made to the Minister for certain locations to be included in the scheme? Has he received representations from designated resorts to have the scope of the scheme curtailed geographically or in terms of particular products? Is he aware that, particularly in Kilkee and Lahinch in County Clare, some people have reservations about the proliferation of self-catering accommodation and holiday homes?
I have received a number of representations for the extension of designated areas — people tend to hear about a new four star hotel proposed for a field next to their designated area. I have also received representations from concerned people who believe developments are not suitable for their regions, but that is a matter for the planning authority. In the pre-budget submission I sent to the Department of Finance we included a list of 49 other areas for which formal designation was sought.
When will the committee reviewing the matter submit a report? Will it examine the type of project that could be assisted in a resort area?
A review of what is happening in various areas is currently taking place. Reports suggest the scheme has been very successful in some places, but not in others. There are different views about the types of facilities being provided. The level of overall investment between designated areas varies somewhat. It is similar to the urban renewal scheme in that one can plot paths of progress in various parts of the country. The long lead-in times for capital projects and the planning process inhibits the ability of the regional tourism authority to assess accurately what is involved. Also, one cannot make an accurate judgment until claims are made to the Revenue Commissioners at the end of the appropriate tax year. However, work is progressing and I will be pleased to listen to any suggestions the Deputy might wish to make.
Will local authorities be consulted about the scheme? Also, will the people in the designated towns and villages have a say in the process?
The areas designated were drawn up by the local authorities. They determined the townlands to be included in the 15 designated areas already chosen. I have told people from the villages and towns who wish to be included that an important element of the scheme is co-operation and a planned agenda of work for the future. If the scheme is modified or extended in the future, people from the areas and locations to be designated should be able to demonstrate a clear agenda of action for the future. The process of consultation is broad and local authorities will be consulted.
Standing Orders deem that, unlike Question No. 3, we make take Question No. 4 in the category of Other Questions.
