Dáil Éireann debate -
Wednesday, 24 Mar 1999

Vol. 502 No. 4

Written Answers. - Rural Renewal Schemes.

Joe Higgins

Question:

118 Mr. Higgins (Dublin West) asked the Minister for Finance if, further to Parliamentary Question No. 208 of 2 March 1999, he will clarify the sentence in which he stated EU Commission approval is not needed for the residential elements of the rural renewal scheme and the reliefs for rented residential accommodation under the scheme commenced on 1 June 1998, by stating if EU approval is required for the rented residential accommodation element of the scheme's tax relief. [8458/99]

Minister for Finance (Mr. McCreevy)

In my reply to Parliamentary Question No. 208 of 2 March 1999, I stated that "EU Commission approval is not needed for the residential elements of the rural renewal scheme and the reliefs for the rented residential accommodation under the scheme commenced on 1 June 1998". The residential tax incentives of a scheme such as the rural renewal scheme can be introduced prior to the business elements of the scheme receiving EU Commission approval. The EU Commission has indicated that it does not consider residential tax incentives as coming under EU state aid rules and, consequently, these reliefs can be introduced without EU Commission approval, both in the case of owner occupiers and lessors of rented residential property.