Derek McDowell (Labour)

I move recommendation No.12:

In page 43, between lines 11 and 12, to insert the following:

"(3) The Minister shall on or before 31 December 2003, report to both Houses of the Oireachtas on the implications of the application of this section for persons on low incomes.".

As we have only a few minutes left, let us broach the subject of special tax breaks and allowances. While I broadly share the Minister's view on allowances and incentives, I seek further clarification. Where there are deficiencies in development, the tax system is an appropriate way to encourage people to invest in areas that would not otherwise have attracted investment.

The Minister has made some announcements – I am not sure I would call them measures – to curtail various reliefs at the end of next year, including film relief. I am not sure what he is trying to achieve. I find it difficult to believe he intends to abolish the urban and rural renewal reliefs forever. They do have a role if applied in a discriminating fashion with particular policies and developmental aims in mind. Will the Minister state his intentions in this regard as this would be helpful for all concerned?