The Pilot Tax Relief Scheme for the Renewal and Improvement of Certain Resort Areas (colloquially known as the Seaside Resort Scheme) was introduced with effect from 1 July 1995 for three years on a pilot basis. The qualifying period was extended in the 1998 Finance Act for a further year to 30 June 1999 for pipeline projects. The scheme was extended again until 31 December 1999 in the 1999 Finance Act. The 15 areas are included in the Seaside Resort Scheme were Bundoran, Enniscrone, Achill, Westport, Salthill, Lahinch, Kilkee, Ballybunion, Clonakilty, Youghal, Tramore, Courtown, Arklow, Bettystown/Laytown/Mosney, Clogherhead.
I am informed by the Revenue Commissioners that for the tax year 2003 and earlier years claims for capital allowances for the seaside resort scheme were aggregated in tax returns with other claims and could not be distinguished from other reliefs claimed. Accordingly, the specific information on costs for 2003 and earlier years are not available from that source.
However, a once-off survey of the seaside resort renewal scheme was carried out in 1999 by the Revenue Commissioners the results of which were published in a report on the scheme by an inter-departmental group chaired by the Department of Tourism, Sport and Recreation. Using indicative information from this survey, the total expected cost of the scheme, rather than annual cost, was estimated at that time to be in the region of €319 million. It was tentatively estimated at that time by Revenue, on the basis of certain assumptions, that the amount of qualifying expenditure and tax cost broken down by resort could be as follows:
|
Resort
|
Qualifying Expenditure
|
Estimated Tax Cost
|
|
€m
|
€m
|
|
Clogherhead
|
5
|
2.5
|
|
Laytown/Bettystown/Mosney
|
22
|
8.9
|
|
Courtown
|
141
|
52.0
|
|
Arklow (UDC area only)
|
19
|
7.6
|
|
Kilkee
|
67
|
25.0
|
|
Lahinch
|
35
|
13.0
|
|
Youghal
|
123
|
46.0
|
|
Clonakilty
|
28
|
10.0
|
|
Ballybunion
|
16
|
6.4
|
|
Tramore
|
58
|
22.0
|
|
Westport
|
65
|
24.0
|
|
Achill
|
43
|
16.5
|
|
Enniscrone
|
60
|
23.0
|
|
Bundoran
|
103
|
38.4
|
|
Salthill
|
65
|
24.0
|
|
Total
|
851
|
319.0
|
Information on the scheme of tax relief for seaside resort renewal scheme was for the first time specified and separately included in personal income tax returns for the tax year 2004, which were due for filing in October, 2005 and in corporation tax returns for accounting periods ended in 2005. Based on the information that has been received and collated to date for the tax years 2004, 2005 and 2006, the following table gives details of number of claims and Exchequer cost in terms of income tax and corporation tax foregone for the seaside resort renewal scheme for each of the years 2004 to 2006.
|
Year
|
Claims
|
Exchequer Cost
|
|
|
€m
|
|
2004
|
1,059
|
10.1
|
|
2005
|
1,190
|
7.3
|
|
2006
|
1,167
|
6.4
|
The information from tax returns cannot be broken down by reference to resorts nor is it possible to provide the information requested on the number of holiday homes, hotel and other developments associated with this tax incentive. I am advised by the Revenue Commissioners that data for the tax year 2007 is not yet available as the appropriate income tax and corporation tax returns for that year are either not yet due for filing (by 17 November 2008 in the case of returns filed via ROS) or have only recently been filed but have not yet been processed. With regard to the benefits of the scheme the report on the scheme by the inter-departmental group chaired by the Department of Tourism, Sport and Recreation indicated that the scheme had resulted in very significant levels of investment in all the resorts but the investment had been overwhelmingly in self catering accommodation. At the time of publication the estimated output of self catering resorts was between 5000 and 6000 units. However, the report also stated that the scheme did not contribute, in any significant way to the achievement of a key tourism objective " the attraction of overseas tourists" but probably assisted in the achievement of regional spread in domestic tourism terms and the wider dispersal of the spin off effects of economic growth.
