Ulick Burke (Galway East, Fine Gael)
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I thank the Ceann Comhairle for allowing me to raise this matter. Just 12 months ago, the Minister for Finance, in his Budget Statement, announced the mid-Shannon tax incentive scheme to support tourism in the area. The announcement was welcomed. Over previous years I and many other public representatives from the mid-Shannon area had asked the previous Minister for Finance, Charlie McCreevy, to extend the pilot scheme for the upper Shannon region to the mid-Shannon region. The pilot scheme was a major benefit for the upper Shannon and we hope the proposed new scheme will benefit tourism interests in the mid-Shannon area, particularly around Lough Derg.

Despite the fact that the scheme was announced 12 months ago and was included in the Finance Act 2007, nothing tangible has been done to indicate that it can get going. Many people are waiting to invest in the development of the tourism industry in the area. Over the years it was neglected for development by what was then known as Bord Fáilte. All the resources went to the west, south and south west. There was little provision for the development of the tourism industry in the midland area, which borders the Minister for Finance's constituency.

The scheme can be commenced by ministerial order so there should be no delay as further legislation is not necessary. However, it cannot be commenced until the relevant guidelines have been drawn up and agreed. We have been told for the last six months that the guidelines are in the final stages of preparation. The scheme must be approved by the European Commission but we do not know if it has been sent to Europe for approval. Will the Minister of State indicate if it has? Will the Minister of State also let the people who are interested in the scheme know if the certification board has been established? Who will be on the board? What interest groups will be represented on it?

Areas in the vicinity of Lough Derg and the mid-Shannon region are covered by the scheme. The broadest possible range of projects should be included in it. Marinas and other water-based facilities are to benefit from it as well as land-based projects such as horse riding and other tourist attractions. These have not been developed to a great extent in the mid-Shannon area. There are many other major projects possible in the area. There are, for example, no interpretative centres in the entire Shannon basin but there is a proposal with State agencies involving Portumna Forest Park. It was due to be developed with the help of Coillte and Tourism Ireland but there is a lack of funding. I hope that project will get immediate approval.

Portumna Castle should also be completed. For three years not a penny has been spent on the completion of Portumna Castle, aside from on obvious maintenance. It is a major attraction in Portumna. The Office of Public Works spent €237,000 on it in the three years 2000-03 but nothing since then, despite the availability of resources. I hope that project will be included in the scheme.

Will the Minister of State indicate whether a board has been established, if the scheme has been sent to the European Commission for approval and if the guidelines and application forms are available? We were told last year that it was a three-year scheme. We do not know if the three years date from its inclusion in the Finance Act or if the clock has yet to start ticking. I hope the Minister of State will clearly outline the position in his reply.

Noel Ahern (Dublin North West, Fianna Fail)
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The Deputy has the gist of the situation and I do not think it has developed any further. I have a rather lengthy reply but I will summarise parts of it.

The Deputy knows the background to the scheme. It is a tax incentive scheme aimed at encouraging the development of tourism infrastructure in the mid-Shannon area. Legislative provision for the scheme was made in this year's Finance Act. In the lead-up to budget 2006 a submission proposing a scheme such as this was received from Shannon Development. This was followed by various other reports and, based on the contents of these reports, the Minister for Arts, Sport and Tourism considered that Ireland's inner core appeared to be relatively underdeveloped in terms of tourism but did have sound tourism potential.

The designated areas involved in the scheme are in a corridor of about 12 kilometres on either side of the river stretching from roughly the bottom of Lough Derg to Lough Ree. The scheme is limited to a period of three years, within which qualifying capital expenditure may be incurred. Projects wishing to avail of relief must get approval in advance and must also obtain formal certification after completion. As the Deputy mentioned, the approval and certification will be given by a special board established for the purposes of the scheme and will be carried out in accordance with guidelines to be issued by the Minister for Arts, Sport and Tourism. The nature of the tourism infrastructure buildings and structures which may qualify under the scheme will be also set out in these guidelines.

Generally, it is proposed that the scheme should concentrate on non-accommodation tourist infrastructure and facilities of a capital nature such as marinas and mooring or docking facilities, leisure centres, sports facilities such as equestrian centres, adventure sport facilities or sailing schools, sports facilities such as golf clubs — but not golf courses, as no capital allowance applies to land — eco-tourism facilities, education and cultural tourism facilities including interpretative centres, health farms and spas, or heritage houses and gardens. Certain buildings, such as those that facilitate gaming or gambling, are specifically excluded from the scheme, as are licensed premises, but not restaurants. Tourism facilities that already qualify for capital allowances, such as hotels, guesthouses and holiday hostels, are also excluded. Accommodation facilities provided as part of a qualifying tourism project may qualify for relief, but expenditure on such accommodation facilities cannot be more than 50% of the overall expenditure on the project or cannot be more than the expenditure on non-accommodation facilities in the project.

Relief will be available over seven years for construction and refurbishment expenditure incurred in the qualifying period at the rate of 15% per annum in years one to six and 10% in year seven. In the case of refurbishment, the qualifying expenditure must exceed 20% of the market value of the property before work commences. In order to comply with the relevant State aid rules, only 80% of the construction and refurbishment expenditure will qualify for relief in areas which are not in the BMW region.

As the Deputy said, the scheme will be commenced by Ministerial order. However, certain steps must be taken before the order can be signed. The relevant guidelines must be drawn up and agreed, the scheme must be approved by the European Commission and the certification board must be established. The development of guidelines has been the subject of ongoing consultations between the Department of Arts, Sports and Tourism and the Department of Finance. These guidelines and accompanying application forms are now at an advanced stage and will be completed shortly. I am hopeful that EU Commission approval will follow on foot of notification of the scheme with the completed guidelines.

I appreciate the Deputy's point about Portumna Castle, which is not part of the scheme, and the money that was spent over a three-year period. I could make inquiries within the Department about this. The Deputy would wish this building to qualify for the scheme. Negotiations are continuing, although they have been slower than expected. It is expected that things will be wrapped up fairly soon.