Dáil Éireann díospóireacht -
Tuesday, 20 Apr 1999

Vol. 503 No. 3

Written Answers. - Urban and Rural Renewal Schemes.

Theresa Ahearn

Ceist:

89 Mrs. T. Ahearn asked the Minister for Finance the progress made in concluding negotiations with the EU Commission on the tax incentives applicable to urban and rural renewal schemes; if those who benefited from double rent allowance and relief from commercial rates, by investing in projects in schemes not sanctioned by the EU Commission may have to repay these benefits; and if he will make a statement on the matter. [10025/99]

Minister for Finance (Mr. McCreevy)

The latest position regarding the approval of the urban and rural renewal schemes is that the EU Commission has recently written to my Department with further queries arising from our response to their previous letter seeking additional information. A reply to them is currently being prepared.

The EU Treaties contain provisions for the recovery from recipients of relief that the Commissions rules as illegal state aids. Ruling on the illegality or otherwise of an aid in any particular case is a matter for the Commission. The position regarding double rent allowance and rates remission in the Custom House Docks area is that the EU Commission have initiated proceedings against Ireland, under Article 92(3) of the EU Treaty for the non-notified introduction of this relief in the Custom House Docks area from end May 1993. As part of these proceedings, the EU Commission published in the Official Journal of the European Communities on 10 April 1999 its formal letter of 30 January 1999 to the Irish Government. Third parties across the EU are entitled to comment on this matter within one month of the date of publication and I will not be in a position to comment further on the matter until this stage of the proceedings is completed. I emphasise that the initiation of such procedures is a common occurrence and the Government is hopeful of bringing the matter to a satisfactory conclusion with the EU Commission within the next few months.