Brendan Smith
Ceist:16 Mr. B. Smith asked the Minister for Finance the progress on the rural renewal scheme; and if he will make a statement on the matter. [16123/99]
Vol. 507 No. 1
16 Mr. B. Smith asked the Minister for Finance the progress on the rural renewal scheme; and if he will make a statement on the matter. [16123/99]
18 Mr. B. Smith asked the Minister for Finance when the business elements of the rural renewal scheme will come into operation; and if he will make a statement on the matter. [16122/99]
I propose to take Questions Nos. 16 and 18 together.
As I announced yesterday, 23 June 1999, these reliefs will come into operation shortly following EU Commission clearance. The tax incentives in question are accelerated capital allowances for the construction or refurbishment of commercial or industrial buildings.
The tax incentives for the rural renewal scheme were legislated for in the 1998 Finance Act. The residential incentives in the scheme were commenced on 1 June 1998 in the case of rented accommodation and on 6 April 1999 in the case of owner-occupied accommodation. The delay in bringing the business tax incentives of the scheme into operation until now was due to the need to clear these under the State aid rules with the European Commission. Because of the longer than expected negotiations and the resultant delay in commencement it is proposed to extend the termination date for the scheme to 31 December 2002 for both the residential and business tax incentives.