Breeda Moynihan-Cronin
Question:164 Mrs. B. Moynihan-Cronin asked the Minister for Finance the details of the commercial element of the urban-town renewal scheme for Killorglin, County Kerry; and if he will make a statement on the matter. [8914/01]
Written Answers. - Urban Renewal Scheme.
As the Deputy is aware, Killorglin, County Kerry was included in the list of small towns which had areas designated under the town renewal scheme announced by the Minister of State at the Department of the Environment and Local Government last July. Incentives to encourage the residential element of the scheme were available from that time and agreement has now been reached with the European Commission to allow the application of commercial and industrial incentives to the majority of projects planned under the business element of the scheme. Details of the new arrangements, which are tailored to meet the Commission's requirements on State aids, were announced by the Minister of State at the Department of the Environment and Local Government on 16 March last.
Incentives will be available to small and medium enterprises, SMEs, that is enterprises defined by the EU as having certain characteristics, including a staff of fewer than 250 employees, with either an annual turnover not exceeding 40 million euro or an annual balance sheet total not exceeding 27 million euro. In detail, the range of projects that have been cleared to proceed from 6 April 2001 following discussions with the European Commission are all new build SME projects – such projects will be eligible for both commercial and industrial incentives; refurbishment projects in the following categories: SME projects where the expenditure incurred is below 800,000 euro – £630,051 – will qualify for the full range of commercial and industrial incentives; SME projects which involve both expenditure on refurbishment and the provision of an extension where the cost of the extension is at least 25% of the market value of the existing building – this category will also qualify for commercial and industrial incentives; local retail SME projects, excluding mail order and financial services. Incentives for office and industrial development are therefore excluded under this category.
Projects which qualify under any of the three refurbishment categories outlined above will be eligible under the scheme. Refurbishment projects which do not fall within these categories are the subject of ongoing discussions with the EU Commission. In view of the delay in reaching agreement with the Commission on the commencement of the commercial and industrial element of the scheme, the termination date of the scheme has been extended from 31 March 2003 to 31 December 2003.
Provision to allow the implementation of these arrangements was included on Report Stage of the Finance Bill, 2001. The provision also pro vided that capital allowances will not apply in respect of expenditure incurred, on or after 6 April 2001, on industrial and commercial premises in designated areas under this scheme where any part of that expenditure is met by way of grant assistance from State bodies or elsewhere. This amendment is being made in order to ensure that the scheme complies with the European Commission's regional aid guidelines for the period to 2006 and similar amendments were made on Committee Stage in respect of the urban and rural renewal schemes.
Jimmy Deenihan
Question:165 Mr. Deenihan asked the Minister for Finance if the commercial incentives under the town renewal scheme will be introduced in the near future; and if he will make a statement on the matter. [9054/01]
Agreement has now been reached with the European Commission to allow the application of commercial and industrial incentives to the majority of projects under the town renewal scheme. Details of the new arrangements, which are tailored to meet the Commission's requirements on State aids, were announced by the Minister of State at the Department of the Environment and Local Government on 16 March last.
Incentives will be available to small and medium enterprises, SMEs, that is enterprises defined by the EU as having certain characteristics, including a staff of fewer than 250 employees, with either an annual turnover not exceeding 40 million euro or an annual balance sheet total not exceeding 27 million euro. In detail, the range of projects that have been cleared to proceed from 6 April 2001 following discussions with the European Commission are: all new build SME projects – such projects will be eligible for both commercial and industrial incentives; refurbishment projects in the following categories: SME projects where the expenditure incurred is below 800,000 euro – £630,051 – will qualify for the full range of commercial and industrial incentives; SME projects which involve both expenditure on refurbishment and the provision of an extension where the cost of the extension is at least 25% of the market value of the existing building – this category will also qualify for commercial and industrial incentives; local retail SME projects, excluding mail order and financial services. Incentives for office and industrial development are therefore excluded under this category.
Projects which qualify under any of the three refurbishment categories outlined above will be eligible under the scheme. Refurbishment projects which do not fall within these categories are the subject of ongoing discussions with the EU Commission. In view of the delay in reaching agreement with the Commission on the commencement of the commercial and industrial element of the scheme, the termination date of the scheme has been extended from 31 March 2003 to 31 December 2003.
Provision to allow the implementation of these arrangements was included on Report Stage of the Finance Bill, 2001. The provision also provided that capital allowances will not apply in respect of expenditure incurred on or after 6 April 2001 on industrial and commercial premises in designated areas under this scheme where any part of that expenditure is met by way of grant assistance from State bodies or elsewhere. This amendment is being made in order to ensure that the scheme complies with the European Commission's regional aid guidelines for the period to 2006 and similar amendments were made on Committee Stage in respect of the urban and rural renewal schemes.