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Dáil Éireann díospóireacht -
Wednesday, 22 May 1996

Vol. 465 No. 7

Written Answers. - Tax-Free Zone Incentive.

John Ellis

Ceist:

49 Mr. Ellis asked the Minister for Finance the plans, if any, he has for the provision of a tax-free zone tax incentive in respect of areas along the Shannon/Erne water way and the Shannon basin similar to those available in seaside resorts. [10567/96]

Designation of towns and areas for tax incentives normally come under the urban renewal scheme. The present urban renewal scheme was introduced on 1 August 1994 and will operate for a three year period. The scheme applies to 35 cities and towns.

Late last year my colleague, the Minister of State with responsibility for housing and urban renewal, Deputy McManus, announced a comprehensive review of the entire urban renewal scheme to assess the experience gained over the past ten years. At that time, she said that until the outcome of this review was assessed no new areas or towns would be designated. I understand that as part of this review a team of consultants has been appointed to evaluate the whole urban renewal experience and is expected to complete its work during the summer.
In last year's budget I announced a new scheme of relief for traditional seaside resorts. This pilot scheme came into effect last July for a three year period. The scheme is in operation in 15 seaside resorts. As I have said in the past, until this pilot scheme is firmly established and evaluated it would seem inappropriate to consider its extension to any further areas. Moreover, I do not intend extending this scheme to any inland areas.
Finally, I would like to remind the House that there are more than 50 areas in cities, towns and seaside resorts designated either under the urban renewal scheme or the pilot scheme for traditional seaside resorts. To introduce additional designated areas under either of these two schemes or to introduce a completely new scheme could greatly dilute the benefits of the existing schemes. Consequently, there are no plans to extend designated status to any additional areas such as those proposed in the Deputy's question.
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