Kieran O'Donnell (Limerick East, Fine Gael)

I move amendment No. 13:

In page 29, between lines 25 and 26, to insert the following:

23.—That the Minister will consider making available designated tax incentives for the Limerick regeneration project as already recommended in the Limerick regeneration masterplan and Mid-West task force report.".

This amendment, which I brought forward on Committee Stage, relates to the specific circumstances of the regeneration in Limerick in the constituency I represent. The Minister gave an undertaking that it would be considered as part of a first-phase submission implementation plan to be submitted by the end of this month to the Limerick regeneration project.

We have spoken on a number of occasions so far in the debate on the issue of tax incentive schemes and I welcome the fact that the Minister has taken on board the amendment on the review of schemes put forward by Deputy Burton. What I propose here relates to the Limerick regeneration project that was launched by the Government on foot of Mr. John Fitzgerald's report, which was completed in March 2007. Following from that report, a vision document was produced and launched in January 2008 by President Mary McAleese in Limerick. Subsequently, a detailed master plan was produced and presented to the Cabinet in October 2008. The vision document has been agreed by the Cabinet; the master plan has not.

The Minister made reference to 2004 being the year when house prices ballooned out of control. One of the reasons for that was the then Minister for Finance, Deputy Cowen, stated that the fundamentals were fine and people should build on. Houses were built and the great majority of those who bought houses at that time are now in negative equity.

However, within the Limerick regeneration project, houses need to be built. Over 400 houses have been knocked in the four areas of Moyross and St. Mary's Park on the northside of the city and Ballinacurra Weston and Southill on the southside. Many of these houses are in areas where elderly people and young families live.

This would give an impetus to the project. There still is a requirement for the State to provide investment. I welcome the fact that the Minister, Deputy Brian Lenihan, during Committee Stage gave a commitment that it would be looked at as part of the submission to be made at the end of this month, but I also want to see the overall master plan agreed by the Cabinet. The Minister will be well aware that when this issue arose with the Fitzgerald report in March 2007, it was deemed to be of such critical importance that it fell under a remit, not of a specific line Minister but of the Cabinet. The first phase of the regeneration plan will go directly to the Cabinet for approval. 6 o'clock

I welcome the examination of the tax designation areas. I believe it should be specific to the regeneration areas in Limerick because the unemployment rate there is five times higher than the national average. Up to 22,000 people are on the live register, 16,000 of whom live in the city alone.

This measure would provide the stimulus to get the private sector involved in the regeneration programme. However, there must be State funding up front to show the Government is committed to the project.

Houses need to be built at this stage. Elderly people are watching the houses around them being knocked or boarded up. What is needed is hope. This amendment on the tax designation would be self-financing for the State. For every €1 spent by the State in the building projects, 35 cent would go back into the State coffers.

I acknowledge the commitment made by the Minister for Finance on Committee Stage to consider this proposal with the first phase submission to be made by the Limerick regeneration project at the end of March.

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