Dara Calleary (Mayo, Fianna Fail)

I can assure Senator Twomey and the House that the Government continues to demonstrate a strong commitment to the Limerick regeneration project. In December last, the Government considered the ten-year regeneration project for Limerick and reaffirmed its commitment to the vision outlined therein. We have asked the Limerick regeneration agencies to complete their work on the programme and to prepare a phase 1 implementation plan by the end of the first quarter of this year, following which the Government will consider the matter again. The agencies are currently developing that plan with expert advice from the National Building Agency which will lay out the planning issues, the projected costings and value for money considerations associated with the housing and other key elements of public investment involved in phase 1.

The economic development options and opportunities-incentives to secure the essential private investment required are also under examination. Some €1.4 billion of private investment and €1.65 billion of public investment was originally envisaged as required to deliver on the masterplan objectives. Tax incentive measures generally have provided a vital stimulus to the economy in Ireland but we must recognise this has a heavy cost on the Exchequer. We must achieve savings in the region of €3 billion in each of the years 2010, 2011 and 2012. There are many conflicting demands on Government as it strives to build on the very little shoots of recovery that are evident in the economy. New, innovative and imaginative thinking is required in tackling projects such as the Limerick regeneration masterplan. However, the inclusion of tax incentives within such plans requires careful examination given the current difficult Exchequer situation.

I reassure the Seanad and Senator Twomey that in any event the Limerick regeneration masterplan will continue to be a priority for Government in the years ahead. Accordingly, I cannot accept the recommendation.