Peter Power (Limerick East, Fianna Fail)

——to assemble land banks when the country was on its knees and nobody wanted to touch these properties. The titles to the properties were a shambles and they took huge personal risks in assembling these properties. They were courageous in availing of the tax breaks and building developments in Limerick such as Arthur's Quay, Charlotte's Quay and transforming the river front. None of this would have taken place otherwise. It has been suggested that somehow this is tax forgone. However, I strongly suggest — I agree with Deputy Curran on this point — that the tax contribution arising from the original tax breaks far exceeds the tax forgone on individual developments. No calculation can be made of the economic activity generated in all the buildings in all the inner city areas which have been developed.

I agree with Deputy Burton that there should be a direct correlation between future tax breaks and specifically focused Government policy. There must be such a direct connection. In that regard, the focus of this year's budget on a package for the elderly should be underpinned by tax breaks in the future. I am referring to the capital allowance for nursing homes and qualified residential units. I ask the Minister and his officials to take note of this point because there are difficulties with the amendments to section 36, specifically, which provides that the tax breaks will not flow until such time as the units are first used, as distinct from completion of construction. That will drive away the investors who have traditionally supported such developments. Therefore, I ask the Minister to re-examine the provisions included in section 36 on Committee Stage.

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