Dáil Éireann Debate, Tuesday - 30 November 2004
240 Mr. Wall asked the Minister for Finance his views on the urban renewal programme; the success of the programme; the value of the programme to the Exchequer; the proposals to renew the programme or a variation of the programme; and if he will make a statement on the matter. [31399/04]
Amharc ar fhreagraThe urban renewal scheme provides for a targeted approach to the use of tax incentives to assist in the rejuvenation of certain urban areas. The designation and selection approach adopted for this scheme involved the preparation and submission of integrated area plans by local authorities. These plans were then subjected to detailed assessment by an expert advisory panel, established by the Minister for the Environment, Heritage and Local Government for that purpose. The areas selected for designation under the scheme were announced in February 1999.
The residential reliefs were introduced with effect from 1 March 1999, while the capital allowances for both industrial and commercial buildings were introduced on 1 July 1999 following receipt of state aid approval from the European Commission in respect of these reliefs.
In the 2003 budget, my predecessor indicated that a range of property reliefs, including the urban renewal scheme, were to terminate on 31 December 2004. In the 2004 budget, the position was reviewed and it was decided to extend the termination date for these property reliefs from 31 December 2004 to 31 July 2006 to relieve pressure on construction resources to meet the December 2004 deadline and allow for an orderly winding down of these schemes. Provisions were included, where not already in place, to ensure that only pipeline projects could avail of the extension to 31 July 2006.
In line with normal practice, I cannot make any further comment on particular tax measures in advance of the Budget Statement.
