Vol. 499 No. 2
21 Mr. McDowell asked the Minister for the Environment and Local Government the impact of recent EU Commission decisions on the future of the Dublin docklands development scheme; the impact on future and past urban renewal schemes; and if he will make a statement on the matter. [2073/99]
The EU Commission last week announced that it had approved the capital allowances for buildings in the Custom House docks area; this approval to apply to 31 December 1999 – in certain cases up to June 2000 – and retrospectively. The Commission has indicated that it regards this measure as a regional investment aid in accordance with Article 92 (3) of the EC Treaty. With regard to the wider Dublin docklands area and the general urban renewal schemes, which have not been approved by the Commission as yet, the implications of the EU decision are likely to be that capital allowances by reason of their status as investment aid can continue in use.
However, the application of double rent allowances and rates remissions to commercial-industrial development are considered by the Commission to constitute operating aid and consequently are not allowable under the relevant EU treaty provisions except in limited circumstances. The extent to which these may be applied in the context of future urban renewal schemes remains to be determined.
The Commission has announced that it is initiating formal proceedings in respect of these incentives as applied to the Custom House docks area since May 1993. The Government intends to strongly defend the application of these allowances when replying to the Commission and has very strong arguments against any retrospection.
