Dick Spring
Ceist:39 Mr. Spring asked the Minister for Finance if he is considering the designation of further enterprise area zones; and, if so, the areas involved. [5573/98]
Written Answers - Designated Enterprise Areas.
Provision was made in section 26 of the 1997 Finance Act for the designation by order of areas immediately adjacent to seven regional airports as enterprise areas. The airports in question are Cork, Donegal, Galway, Kerry, Knock, Sligo and Waterford regional airports.
The legislation states that the designation order will be made by the Minister for Finance after consultation with the Minister for Public Enterprise and following receipt of a proposal from or on behalf of a company intending to carry on qualifying trading operations.
The Deputy is probably aware that in May 1997, in the context of State aids, the Competition Directorate of the EU Commission sought detailed information on the new tax reliefs for regional airports and new enterprise areas provided in the 1997 Finance Act. This was on foot of an article in The Irish Times publicising the new schemes. The Commission then initiated a full investigation into all the enterprise areas, including those six enterprise areas developed under the 1994 Finance Act. Last December, the Commission decided to approve the tax reliefs for the enterprise areas in the context of State aids but the decision did not cover the regional airports enterprise areas scheme. However, when projects for the airports enterprise areas are approved by the Irish authorities and areas are then designated, they will be submitted to the EU Commission for approval.
With the exception of the enterprise areas for the regional airports, I am not considering the designation of any further enterprise areas. It should be noted that from now on EU approval will be required for any such designations.