Willie Penrose (Westmeath, Labour)
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Question 286: To ask the Minister for Finance his views on the possibility of introducing tax incentives to encourage the standing of sound stallions; and if he will make a statement on the matter. [14609/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The 2006 Finance Act provides that the tax exemption for stallion stud fee is discontinued, with effect from 31 July 2008, in line with the budget announcement to this effect. A new regime appropriate to the industry will be discussed with the European Commission, and consultations with the industry will take place in due course. I am not in a position at this stage to give any indications or undertakings as to the nature of any new tax regime, although the particular issue adverted to by the Deputy can be borne in mind in that context.

Paudge Connolly (Cavan-Monaghan, Independent)
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Question 287: To ask the Minister for Finance if he has proposals for a tax incentive business development scheme for County Monaghan in view of the impact of the troubles' impact on indigenous industries; and if he will make a statement on the matter. [15307/06]

Michael Ring (Mayo, Fine Gael)
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Question 306: To ask the Minister for Finance his views on giving tax designation to an area (details supplied) in County Mayo to try encourage people to develop the area. [14808/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I propose to take Questions Nos. 287 and 306 together.

The 2006 Finance Act provides for the termination of a range of area-based tax incentive renewal schemes, in line with my budget day announcement to this effect. My decision to phase out these tax schemes was taken in the light of the recommendations of independent consultants who undertook a detailed assessment of these reliefs last year.

Against this background, I have no plans at present to introduce new tax incentive schemes of the sort referred to by the Deputies. However, the possibility of using tax incentivisation as a tool of economic policy will continue to be borne in mind in framing future tax policy, in accordance with the consultants' recommendations. It should also be noted that the introduction of new area-based incentive schemes would raise issues of compatibility with EU state aid law.