Jerry Cowley (Mayo, Independent)
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Question 308: To ask the Minister for Finance his views on a special tax incentive scheme for County Mayo in view of the decline in manufacturing industry and the need to attract entrepreneurs to the area in the interests of local development in an employment black spot area; the impediments that prevent him from introducing such an incentive scheme; and if he will make a statement on the matter. [4938/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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A number of areas in Mayo are already designated for relief under the 2 main area based tax incentive schemes, Ballina was among the 42 towns and cities that had integrated areas designated for tax relief under the 1999 Urban Renewal Scheme, while Belmullet, Charlestown and Foxford had sub-areas and sites designated for tax relief under the Town Renewal Scheme. Under both of these schemes tax relief has been and continues to be provided for the refurbishment and construction of certain residential, commercial and industrial buildings.

Following a major review of various property and area based tax incentive schemes I announced in Budget 2006 that the various existing reliefs either had achieved the objectives set out for them or were no longer considered to be cost effective in terms of the objectives set out for them and were therefore being terminated subject to certain transitional provisions. These included the Urban Renewal and Town Renewal Schemes. While I will continue to assess the role that time-limited tax relief schemes can play in supporting public policy objectives, there are no proposals at present to re-introduce tax incentive schemes along the lines of the ongoing Urban or Town Renewal Schemes in County Mayo.

Jerry Cowley (Mayo, Independent)
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Question 309: To ask the Minister for Finance his views, in view of the population explosion predicted by the Central Statistics Office in Dublin, on whether there is little point in promoting further development of this area when he should be introducing financial incentives to promote the under developed counties such as Mayo, especially with the Border Midland Western region underspend of the national development plan of €3.75 billion; and if he will make a statement on the matter. [4939/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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In relation to the NDP 2000-2006 the figures reported at the recent NDP/CSF Monitoring Committee meeting in December 2006 indicate that some €11.7 billion of Exchequer and EU expenditure has been incurred in the BMW region by the end of June 2006. The original Exchequer and EU forecast for the BMW region for the lifetime of the Plan is €14.5 billion. Accordingly, this is a healthy implementation rate in view of the slow start up in some areas at the very beginning, the relatively disappointing response in certain demand led schemes and the fact that Exchequer spending in relation to Structural Fund Measures for the 2000-2006 period will in fact continue up to 2008 in accordance with EU Regulations.

Based on the most recent information available to me from Monitoring Committee reports including their assessments of continuing spend under the current NDP, I expect that by the end of the programme period in 2008, Exchequer and EU spending in the BMW region will be in the region of €14 billion. It is therefore totally incorrect to contend as the Deputy continues to do, that there will be any underspend of the order of €3.75 billion in the BMW region. I can only conclude that the Deputy, with others, continues to insist on this misrepresentation for the purposes of deliberately misleading the public, and in an effort to curry some sort of favour with the electorate on a false basis.

Chapter 3 of the recently launched National Development Plan 2007-2013 sets out a strong framework for the promotion of regional development with a particular focus on investment in the National Spatial Strategy (NSS) Gateway centres. In this context the Plan correctly recognises the need to promote a strong and efficient Greater Dublin Area given its central role in driving development not just in its own region but in the State as a whole. The Plan also recognises the need to promote the other Gateway centres, Hubs — including Castlebar/Ballina, county towns and rural areas.

Five of the Gateway centres — Dundalk, Letterkenny/Derry, Midlands, Galway and Sligo — are in the Border, Midlands and West Region. The Plan points out that in addition to the specific Gateway projects mentioned "there will be many additional programmes and projects funded under the Plan which will play an important role in the economic and social development of the Gateway Regions, including the Hubs, county towns and rural areas of the Regions". There is also a Chapter of the Plan dedicated to the Rural Economy. The projects listed are undoubtedly key ones not only for the Gateway centres but also to improve linkages within them and other regions. Finally, it can be expected that the BMW region will benefit directly from the consolidated and enhanced framework for all-island cooperation set out in the Plan.

In addition, the Plan provides for the establishment of a Gateways Innovation Fund of some €300 million of Exchequer funding for the period 2008-2010. The purpose of this fund is to leverage matching private and other public funding for projects that give added value to Gateway development. The Fund will of course be accessible to Gateway areas in the Border, Midlands and West Regional Authority areas.