Frances Fitzgerald
Ceist:245 Ms Fitzgerald asked the Minister for Finance the status regarding tax incentives available for the Custom House Docks development area; and if he will make a statement on the matter. [22692/98]
Written Answers. - Tax Incentives.
The proposed tax incentives for the Custom House Docks area extension are accelerated capital allowances for the construction or refurbishment of commecial buildings, double rent allowance for the lessees of these buildings for ten years and rates remission on a sliding scale for ten years. All new tax incentives for commercial and industrial development in particular areas must be notified to the EU Commission for consideration in the context of State Aids. Consequently my Department formally notified the EU Commission of the tax incentives for the Custom House Docks area extension last January. A meeting took place with the EU Commission in Brussels in February to discuss this proposal. Apart from delays, the first indication from the Commission that there was a problem from its point of view was given at a meeting in Dublin in mid-April. This was confirmed at a follow up meeting in Brussels in May 1998.
The Commission's view now is that it is opposed on state aid grounds to the granting of double rent relief and rates remission except for small scale activities or locally based services in areas where physical degradation is associated with social disadvantage or high unemployment. A detailed reply was sent in October to the EU Commission in response to its most recent letter of mid-September. The timescale for approval of this and other schemes is a matter for the EU Commission and its response is now awaited.