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.