Dáil Éireann debate -
Wednesday, 3 Jun 1998

Vol. 491 No. 6

Written Answers. - Urban Renewal Scheme.

Ulick Burke

Question:

158 Mr. U. Burke asked the Minister for Finance if he will exclude urban renewal reliefs in Tuam, County Galway, from the £25,000 cap on relief for individual investors, in view of the fact that the town has not benefited from this scheme previously and requires powerful tax incentives to reverse the continuing decline in economic activity; and if he will make a statement on the matter. [12743/98]

Minister for Finance (Mr. McCreevy)

No area has yet been recommended by the Minister for the Environment and Local Government for inclusion in the new urban renewal scheme, which itself is subject to the approval of the EU Commission.

Notwithstanding these pertinent facts, the restrictions on capital allowances which I introduced in the last budget are designed to limit the extent to which such capital allowances on investment in buildings can be claimed against nonrental income by passive individual investors. I do not consider it appropriate to exclude any urban renewal area from this restriction which is an important tax equity measure aimed at ensuring a fairer sharing of the tax burden.