Dáil Éireann debate -
Wednesday, 28 Nov 2001

Vol. 545 No. 2

Written Answers. - Urban Renewal Schemes.

Bernard J. Durkan

Question:

101 Mr. Durkan asked the Minister for Finance if he has received information regarding areas of special designated status with particular reference to the progress to date in respect of the works involved; if he will provide this information on a county by county basis; and if he will make a statement on the matter. [30189/01]

Minister for Finance (Mr. McCreevy)

I take it that the Deputy is referring to the designation of areas under the urban, town and rural renewal schemes. The designation of areas under both the urban renewal scheme and the town renewal scheme is a matter for the Minister for the Environment and Local Government in the first instance.

The 1999 urban renewal scheme made provision for the operation of a more planned, integrated and focused approach to tax incentive-based urban regeneration. A significant feature of the urban renewal scheme was the enhanced role of local authorities in selecting sites for possible tax incentive designation, although the final decision regarding the designation of areas and the granting of incentives was made by the Ministers for the Environment and Local Government and Finance. In the selection of sites, local authorities were assisted by detailed guidelines which set out the purposes and aims of the scheme, the criteria to be used in selecting areas, and advice on the approach to be followed.

Integrated area plan proposals prepared and submitted by local authorities were subjected to detailed assessment by an expert advisory panel. Recommendations made by the panel were accepted in full and designations were implemented on that basis. The panel selected 49 integrated area plans for designation under the urban renewal scheme. The areas selected were announced by the Minister of State with responsibility for housing and urban renewal, Deputy Molloy, in February 1999 and the residential elements of the scheme were introduced with effect from 1 March 1999. Due to a delay in securing European Commission approval, the introduction of the business elements of the scheme was delayed until 1 July 1999. The scheme is due to terminate on 31 December 2002.

The primary aim of the town renewal scheme is to restore, consolidate and improve the existing built fabric of towns, to promote sensitive development where appropriate and to revitalise the centres of small towns. When preparing and assessing town renewal plans, local authorities and the expert panel were obliged to consider the aims and objectives of the scheme and the specific criteria by which plans should be assessed. In accordance with the Town Renewal Act, 2000, and 1999 town renewal guidelines, the designation of sites was decided in the context of town renewal plans. Each local authority had to prepare and submit plans, including proposals for the designation of specific sites for tax incentives, in accordance with the appropriate criteria as outlined in the guidelines. The expert panel on town renewal assessed the plans submitted and made recommendations on the sites designated in the context of the plans submitted by the various local authorities. The recommendations made by the panel were accepted in full and that is the basis on which designations were implemented.

The panel recommended 100 towns for designation for tax relief under the town renewal scheme. The residential elements of the scheme were introduced with effect from 1 April 2000. Agreement was reached with the European Commission in March 2001 to enable almost all projects under the scheme to proceed with effect from 6 April 2001. Discussions are continuing to secure agreement to enable the outstanding element of the scheme to proceed. The termination date for this scheme is 31 December 2003.

The designation of areas in the upper Shannon area for tax relief under the rural renewal scheme was provided for in the 1998 Finance Act. The areas designated included all of counties Longford and Leitrim and parts of counties Roscommon, Cavan and Sligo. The area designated under this scheme was the largest contiguous area in the State that was continuing to undergo population decline. The 1996 census showed that the populations of both counties Longford and Leitrim had declined while every other county in the State had shown moderate or significant increases. The objectives for this scheme are to assist in the reversal of population decline and also to stimulate economic activity in the area.

The relief for rented residential property available under the scheme was introduced with effect from 1 June 1998 and relief for owner occupiers of residential property was subsequently provided for in the 1999 Finance Act and introduced with effect from 6 April 1999. The introduction of the capital allowances for commercial and industrial property was delayed until 1 July 1999 as these reliefs were not cleared by the European Commission until late June 1999. In view of the delay in securing approval of the non-residential elements of the scheme the original deadline of 31 December 2001 was extended by one year to 31 December 2002.