Vol. 505 No. 4
50 Mr. Creed asked the Minister for Finance the progress, if any, made in reaching agreement with the EU Commission on the package of tax relief which may apply in urban and rural renewal areas; and if he will make a statement on the matter. [13825/99]
My Department formally notified the EU Commission of the business elements of both schemes on 17 September 1998 after having already discussed them with the EU Commission on a number of occasions earlier in the year. The commission responded on 17 November 1998 with a request for a substantial amount of additional information. The matter was discussed with the EU Commission at a meeting in mid-February and a detailed reply was sent to the commission in early March. The commission wrote again on 24 March 1999 with a further request for additional information and a reply was sent to this letter on 24 May 1999. The discussions with the EU Commission have been quite protracted and are affected by the delay in obtaining EU approval for the new regional State aids for various Irish regions, including the new regional aid intensity ceilings. As things stand at present, it appears that it will take some more months before the business tax incentives elements of the schemes will be approved by the EU Commission.
