Vol. 539 No. 1
87 Mr. Creed asked the Tánaiste and Minister for Enterprise, Trade and Employment if she has received a submission from the South-West Regional Authority regarding designation of the Cork/Kerry region for preferential tax treatment in respect of new IT industries; and if she will make a statement on the matter. [18593/01]
I have received a submission proposing tax benefits, particularly in relation to buildings suitable for IT and entertainment industries, for parts of the south-west region, i.e., west Cork, south Kerry and areas in north Cork/north Kerry. The submission was made in the context of seeking to develop parts of the region considered to be particularly disadvantaged.
A representative of the regional authority and some other private and public partners in the region discussed the matter with my Department on 15 June. I understand that this representative intends to discuss the matter with the Department of Finance and it is expected that further discussion with my Department will then be requested.
The type of proposal put forward in this case is subject to the regional aid limits laid down by the EU Commission for the various regions in the European Union. While all regions in Ireland are still eligible for regional aid, our high economic growth in recent years means that the south and east regions in Ireland are moving to aid rates which are lower than the rates applying in the Border, midlands and west region. Industrial projects in all regions are eligible for grant aid from agencies such as IDA or Enterprise Ireland. Should a tax incentive scheme also apply to such a project, the combined effect of the grant and tax schemes would still have to respect the maximum aid level for the region laid down by the EU Commission.
The challenge of achieving balanced regional development is a multifaceted one which is addressed in many aspects of the national development plan for the period 2000 to 2006. These policies, which have a particular focus on infrastructure development, human resource development and the stimulation of productive investment by the private sector, are being implemented across a range of Departments.
As part of the implementation of the national development plan, a focus on regional development is being implemented by the industrial development agencies. IDA has intensified its efforts to achieve a better distribution of overseas investment into the regions and Enterprise Ireland has also developed a comprehensive approach to achieving balanced regional development. At present, both IDA and Enterprise Ireland have under consideration the extent to which incentives in relation to the development of industrial property may be necessary as part of their industrial strategies. I will examine the proposal from the South West Regional Authority in that context.
