Vol. 483 No. 1
20 Mr. Deenihan asked the Minister for Finance if he will introduce tax incentives for designated rural areas to stimulate rural enterprise and to encourage rural renewal; and if he will make a statement on the matter. [19766/97]
Such proposals have been submitted to me for consideration and are being examined in the normal way in the context of the forthcoming budget and Finance Bill.
A scheme of urban renewal for cities and certain major towns has been in existence for some years and it has been successful in promoting urban renewal in these centres. As the Deputy will appreciate, some elements of this scheme, for example, reliefs for shopping centres, would not be appropriate for rural localities. In addition, there is the problem of selecting designated areas as presumably all of rural Ireland would want to be designated, and spreading the incentives throughout the country would greatly dilute their impact in any area.
Does the Minister agree significant sums of money are leaking out of rural Ireland and being invested in designated urban areas? Will he favour individual projects rather than a cluster of projects in designated areas when considering new tax incentives?
A number of propositions have been put to me by various interest groups in the lead up to the budget on 3 December. The idea of a tax incentive scheme for rural renewal was put to me by members of my party and other organisations. As the Deputy is aware, the farming organisations have been pursuing this matter for some time. In his supplementary question the Deputy pointed out that tax incentive schemes can distort investment. It is difficult to devise a scheme of incentives for rural regeneration which would have the effect I desire. I am sympathetic to the idea and I will give it serious consideration.
Although I do not agree with commissioning studies, a report I commissioned last June stated that a group of experts should be set up to make suggestions on what tax incentives would be appropriate for rural areas. Will the Minister consider those suggestions?
I received a number of ideas from various organisations and individuals and am trying to find the most appropriate mechanism to deal with this matter.
Will the Minister consider the boggy areas of Kildare and Offaly rather than seaside towns?
Written Answers follow Adjournment Debate.
