Jimmy Deenihan
Ceist:22 Mr. Deenihan asked the Minister for Finance if he will introduce an incentive scheme, similar to the urban renewal scheme, for traditional seaside resorts; and if he will make a statement on the matter.
Written Answers. - Urban Renewal Scheme.
In this year's Finance Bill I am introducing a new urban renewal scheme which will commence on 1 August next. The scheme will contain accelerated capital allowances for industrial buildings, and include generous incentives for the development of refurbished residential accommodation. The scope of the scheme will cover a broader area than heretofore. While the coverage will be reduced in the 5 county boroughs of Cork, Dublin, Galway, Limerick and Waterford to about one quarter of the size of the areas currently designated therein, the existing designations in the provincial towns will be continued and small areas in 12 additional towns will also be designated.
The new scheme, with its focus on residential and industrial development will stimulate growth and employment in our designated cities and towns. While it is accepted that there are many areas throughout the country which could benefit from some form of additional incentive for development, in order to be effective however, the number of areas where incentives apply must be limited. To spread incentives over too broad an area would lead to additional Exchequer cost and dissipate the intended effect of the new urban renewal scheme. Also some areas could be in danger of being developed on a solely tax driven basis rather than in response to commercial factors which could be very damaging. The new urban renewal scheme is due to terminate at end-July 1997 at which point the position will be reviewed.