Vol. 549 No. 3
195 Mr. Kenny asked the Minister for Finance his views on accelerated tax rebates where business persons, either individually or collectively, provide funding for and facilities to monitor streetscapes and outside of business premises where such facilities would be provided, with the consent of chambers of commerce, to assist in the detection of anti-social behaviour; and if he will make a statement on the matter. [6820/02]
Although I appreciate the motives of the Deputy in this instance, this is a complex matter. On the basis of the information provided it is not clear if the expenditure or the facilities involved relate to the trades of the business persons to whom reference is made in the question or if some type of voluntary contribution or donation is involved. Neither is it clear who will actually own the facilities, e.g. the local authority or the owner of the business premises.
In any case, the expenditure incurred would appear to be capital in nature and no "accelerated" deduction would be available. At best the normal rates of capital allowances on plant would be available if a person incurs expenditure on plant for the purposes of his or her trade. In order to qualify for such a deduction, the plant must belong to the person involved and be in use for the purpose of the trade, and while used for that purpose, be wholly and exclusively so used. These rates are 20% per annum over a five year period.
As the Deputy's proposal is a relatively new one, it would be necessary to examine the matter in consultation with the Department of Justice, Equality and Law Reform and the Department of the Environment and Local Government.
