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Dáil Éireann díospóireacht -
Wednesday, 26 Mar 1997

Vol. 477 No. 1

Ceisteanna — Questions (Resumed). - Rural Development.

John Browne

Ceist:

10 Mr. Browne (Wexford) asked the Minister for Agriculture, Food and Forestry the plans, if any, he has to introduce a tax incentive scheme similar to BES or urban renewal to encourage investors to become involved in rural development; the discussions, if any, he has had with the Department of Finance in this regard; and if he will make a statement on the matter. [3557/97]

The introduction of tax incentive schemes is a matter for the Minister for Finance.

The rural development policy advisory group, which I established to advise on the formulation of future policy for rural development, will include in its report a recommendation that private investment in enterprise development in rural areas should be offered special tax reliefs for capital investment and profits. The report of the group will be examined by the Department in the context of the preparation of a strategy for rural development, for which I will seek Government approval. I will discuss the various elements of the strategy with appropriate Ministers.

In this year's budget there was a tax concession for the control of farmyard pollution. I support that and I urge the Minister of State to continue his representations to the Minister for Finance to extend that concession and to extend incentives which are available in urban areas and in towns, under the resort towns scheme. This offers an opportunity to enhance the rural development programme. Can the Minister of State say if we can look forward to such a development, particularly during the month of May?

The draft report recognises the problem posed by the outflow of savings from rural areas and the absence of adequate mechanisms to channel local funds into local investments. Large amounts of money are being spent in tax shelters in urban areas, which represents an outflow of capital from rural areas. If tax incentives were provided in rural areas it is possible that those funds would remain in those areas.

The report suggests that a level of positive discrimination in terms of tax breaks and grants in favour of people investing in rural areas should be considered, particularly offering special tax reliefs for capital investment and on profits linked to enterprise development in rural areas and tax incentives to support rural renewal schemes in towns and villages mentioned in the report. The group has been meeting for the past 18 months and has made numerous proposals for the renewal of rural areas. I am supportive of these proposals. I will make a strong case to Government to accept them and I am sure it will be receptive. There is a final consultative conference on 15 April where the report will be finalised and presented to Government immediately. I hope the report will be accepted with all its recommendations as it should be the forerunner to a Government White Paper on rural areas.

Does the Minister of State agree that one of the best ways to prevent rural decay and help rural renewal is to stop planting large tracts of land for forestry purposes where local smallholders wish to buy such land to make their own holdings viable? Does the Minister of State or the Government propose to regulate the sale of land, particularly as regards the change of land use?

One of the reasons forestry has been so popular in rural areas is because it is tax driven. The Minister has made it clear in public statements and in his strategy that the incentives for forestry are directed at the farming population. We want to see forestry as part of the cash crop of farmers who use marginal land to plant and see it as part of their everyday income. That is the philosophy behind our forestry plan. In those circumstances, forestry can be productive for the rural population.

I am sure the Minister of State is aware of the unpopularity of forestry in many locations where people are deprived of the opportunity to make their holding viable and where large tracts of forestry are planted in front of private dwellings. It should be possible to eliminate such activity.

I am of course aware of objections to forestry throughout the country. However, in the strategy launched by the Minister some months ago, we showed our sensitivity to rural dwellers by ensuring that forestry will have to be removed to an acceptable distance from private dwellings. Overall, a much tighter forestry regime than previously is in operation. This is due to the Minister's commitment to bringing forward a policy document and a new regime for the forestry sector. Some of the Deputy's concerns have been expressed by those living in rural areas. Nevertheless, I think we can achieve a balance between forestry and those living in rural areas. Forestry is an attractive alternative to mainstream farming provided more farmers take it up and the grants available are attractive.

What arrangements are in place to ensure there is harmony and compatibility between the Leader programme, the towns and villages development programme and peace and reconciliation funding in the Border counties? There is a view that many of these schemes are not in harmony with one another. As a result, the sustainability of some of the developments may be in question in the future. Is the Minister sure there will be tangible evidence in five years' time that investment was made under these schemes in 1996 or 1997?

A serious effort is being made to co-ordinate the various schemes. We are setting up a working group to supervise them and to ensure their effectiveness. These initiatives have already begun to impact on rural areas and I am confident they will do so in the years ahead. There are strategies in place and we have focused on the problems of rural areas. There are also programmes to implement those strategies. I am confident major progress will be made in rural areas and that identifiable projects will yield employment and give life to rural areas in the years ahead.

The Dáil adjourned at 4.15 p.m. until 2.30 p.m. on Tuesday, 8 April 1997.

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