Noel Ahern (Dublin North West, Fianna Fail)

From what I know of this project, any delay is largely a question of timing. Some of Deputy Clune's comments are wide of the mark and premature.

The Cork docklands area is set in a strategic location to the east of Cork city centre and covers 166 hectares of land. The potential of the area was initially recognised in the 1990s, culminating in the publication of the Cork docklands development strategy in 2001. This set out a vision for a new urban quarter characterised by high-quality design with residential, employment and leisure opportunities. In overall terms, the report highlighted that the area constituted a superb quality of life in a high-density urban setting.

During a visit to Cork on 23 November last, the Taoiseach announced the formal establishment of the Cork Docklands Development Forum as "a hugely significant step in the development of Cork's docklands as a residential, economic and cultural centre to rival anywhere in Europe". The overall objective of the forum, which is chaired by Professor Gerry Wrixon, a former president of University College Cork, is to oversee and drive the development of the Cork docklands area by bringing together senior representatives of key Departments and the local authorities, in addition to stakeholders from community and business sectors.

The broad range of experience of the participants will ensure the redeveloped docklands will become a new hub of activity for all Cork people. The work of the forum is ongoing and officials from the Departments of Finance, the Taoiseach, Enterprise, Trade and Employment and the Environment, Heritage and Local Government are engaged on a cross-departmental approach to expedite its work in partnership with the relevant local stakeholders. The forum has already met on several occasions and is due to report back to the Government by June 2008.

The regeneration of the Cork docklands area is highlighted in the national development plan, which recognises that the area has the capacity to accommodate an additional residential population of at least 15,000 people, including a mix of both social and affordable housing units. The regeneration of the area will also result in significant commercial activity with associated job creation opportunities. The national development plan also recognises that investment in physical infrastructure to trigger subsequent private investment in the area is necessary. In particular, the plan identifies the need for priority investment in roads, water services, port relocation and associated infrastructure to facilitate the Cork docklands regeneration.

The case for the regeneration of the area was also recognised by the Government as early as 1999 when a significant area in the docklands was designated for tax reliefs under the 1999 urban renewal scheme. It is accepted, however, that for a variety of reasons, no significant development took place in the areas designated under that scheme. In advance of this year's budget, Cork City Council proposed several tax incentives to assist the regeneration of the Cork docklands. The proposals included the remediation of contaminated land, relocation of land uses incompatible with regeneration, provision of key infrastructure by the private sector, provision of premises for targeted knowledge-based and high-value sectors, and incentives for residential owner occupiers and investors. Given the nature of the proposals, particularly those relating to the remediation of contaminated land and the relocation of land uses, it is understood it is highly unlikely that the overall package of reliefs as proposed by Cork City Council would be approved by the European Commission under the relevant state aid guidelines.

Although the European Commission approved the Cork docklands and some of the adjoining areas as being eligible for regional aid under the state aid map for the period 2007-13, this does not mean that the area can qualify for all of the reliefs that have been proposed to date. In fact, the Commission's state aid map, in effect, simply places an upper ceiling on the level of aid that can be awarded in a specific assisted area. It should also be borne in mind that any decision to provide tax incentives for any specific location, such as the docklands, must take a number of factors into account.

The Tánaiste and Minister for Finance, when introducing Second Stage of the Finance Bill yesterday, reiterated his recent comments on the use of tax incentives for the development of Cork docklands. As Deputies will recall, he stated that the Cork project is at the beginning of a process of evaluation and that we would need to assess how best to devise proposals that would meet European Commission state aid requirements. He went on to say that the docklands is an exciting project but at this stage, it is very much a work in progress. He indicated that an early announcement may not assist in clarifying some of the outstanding issues that have yet to be resolved between the various stakeholders locally. He said that the Cork docklands forum is expected to report by the middle of this year and that he remains open to looking at ways in which the tax code can be used creatively to encourage investment and change behaviour.

It should be noted that the Tánaiste appreciates that due to its unique location and potential, the regeneration of the docklands is both a regional and a national priority. That means that the Deputy is a little early in raising her concerns, that many things need to be done locally first, that the proposal can be improved and that it may be considered next year.

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