asked the Minister for Finance if his attention has been drawn to suggestions by a company (details supplied) in Dublin in relation to their proposal for Inns Court, that the tax incentives for Dublin represent half of those which apply to other urban renewal centres such as Waterford and Limerick; if his attention has further been drawn to the fact that the tax advantages favour purchasers of units and their occupants as opposed to the builders-developers; his views on whether this is an anomalous situation; and if he will make a statement on the matter.
Written Answers. - Tax Incentives.
55.
Representations from the company concerned have recently been referred to me, expressing the views contained in the Deputy's question. In fact, the Dublin designated area has exactly the same range of development incentives as the other designated areas referred to, apart from the reduced rate of accelerated capital allowances, which is available at 50 per cent, rather than at 100 per cent. I have already dealt with the reason for this exception in my reply to Deputy Birmingham on 10 November last.
I would not agree that the tax incentives in the designated areas create an anomalous situation as between builders-developers on the one hand, and purchasers-occupants, on the other. The relevant incentives are intended primarily to promote urban renewal, and this gives a direct stimulus to the construction sector in meeting the demand for buildings to which the incentives are applicable. This obviously is of direct and major benefit to the builders-developers. It is of course quite open to any builders-developers to retain ownership of the buildings they have constructed and either to occupy or lease them, and thus avail immediately of the various tax reliefs.