Dáil Éireann debate -
Tuesday, 19 Feb 2002

Vol. 548 No. 5

Written Answers. - Rural Renewal Scheme.

Gerry Reynolds

Question:

183 Mr. G. Reynolds asked the Minister for Finance if he will consider extending the rural renewal scheme to north County Sligo; and the reason north County Sligo was not included in the scheme in the first instance. [5454/02]

Minister for Finance (Mr. McCreevy):

There are no proposals, at present, to designate additional areas under the rural renewal scheme. The rural renewal scheme is a pilot scheme and is focused on a limited and specifically defined part of the State and aimed at the upper Shannon region. It would not be appropriate to consider the designation of other areas until the effectiveness of the scheme in promoting additional economic growth and reversing population decline in the designated area is evident. In addition, an extension to the areas currently designated under the scheme or changes to the business tax reliefs would be subject to European Commission approval under State aid rules.

The area designated under the rural renewal scheme includes all of counties Longford and Leitrim and parts of the neighbouring counties of Sligo, Cavan and Roscommon. The reliefs available under this scheme and the areas to which the reliefs apply were provided for in the Finance Act, 1998. In both deciding the range of reliefs and the areas to be designated under this scheme I was mindful of the fact that counties Longford and Leitrim were continuing to suffer from population declines against the national trend. 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. It should be pointed out that in order to maximise the effects of the reliefs available under the scheme, it was of critical importance that the scheme be targeted at both counties Leitrim and Longford. While additional areas in the surrounding counties of Sligo, Roscommon, and Cavan were also designated for relief under the scheme, it was felt that the designation of further areas would increase the geographical scope of the scheme to such an extent so as to dilute the incentivising effect of the reliefs on the upper Shannon area.