Vol. 492 No. 2
43 Mr. Sargent asked the Minister for Finance the special taxation measures, if any, in place to address the problem of rural decline, particularly in the case of villages with a population of less than 1,000 where essential services are being put at risk due to a vicious cycle of decline; and if he will make a statement on the matter. [13676/98]
The Deputy is no doubt aware I introduced a pilot rural renewal scheme in this year's Finance Act. As it is impossible to designate all of rural Ireland, this pilot initiative is applicable in the first instance in parts of the Upper Shannon region, namely all of counties Leitrim and Longford, and parts of counties Cavan, Roscommon and Sligo. The aim of the scheme is the renewal of this rural area on similar lines to what has occurred in urban renewal centres under the urban renewal scheme.
The tax reliefs for areas covered by the scheme include capital allowances for the construction or refurbishment of certain industrial and commercial buildings and a section 23 type relief for the expenditure on the construction, conversion or refurbishment of rented residential accommodation. The section 23 element of the scheme commenced on 1 June 1998. However, EU approval is required for the non-residential incentives. Once such approval is received, this element will begin by way of a commencement order.
