Richard Bruton (Dublin North Central, Fine Gael)

On the issue of competition which Deputy Bruton raised, the allowances available under the scheme are limited to the net cost of the removal and relocation. This means the benefits from the sale of the land where the industrial facilities were previously located will be deducted. The allowance granted will also be adjusted in the case of productivity gains which may occur when a company constructs a more efficient facility. That is the reason for the sections to which the Deputy referred.

The additional capital allowances for the purchase of new plant and machinery and buildings will be clawed back if they are sold within the two year period. All that is permitted is the replication of the existing facility without any undue advantage to the person making the relocation. Nothing more than that is permitted under the relief. The reason for these provisions is to ensure there is no prejudice against competing providers. The clawbacks and the provisions to net off the benefits from the sale of the land of the initial site ensures that the scheme will be fair and reasonable in only meeting costs necessitated by the removal and relocation of Seveso listed industrial facilities which are hindering the regeneration of an urban dockland area. That is essential in order to comply with EU requirements. In respect of market value, the adjustment is the actual sale price when sold in this context.

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