Jerry Cowley (Mayo, Independent)
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Question 255: To ask the Minister for Finance the reason, in view of the fact that in recent years capital allowances were extended to include not just hotels but also guesthouses, holiday hostels and holiday camps, the caravan and camping sector are not included; and if he will make a statement on the matter. [6068/07]

Jerry Cowley (Mayo, Independent)
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Question 257: To ask the Minister for Finance if he will extend the capital allowance regime in the Finance Bill 2007 to include the 112 registered caravan and camping parks to enable these businesses to compete on an even playing field with the rest of the tourist accommodation providers here; and if he will make a statement on the matter. [6087/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I propose to take Questions Nos. 255 and 257 together.

Section 34 of the Finance Act 2005 introduced a number of changes to the capital allowance regime for hotels, guesthouses, holiday hostels and holiday camps. Guesthouses and holiday hostels were specifically brought into the capital allowances regime for the first time. Also, the entitlement to the capital allowances was provided for the first time on the basis of buildings being registered in the appropriate Fáilte Ireland register.

Following the Finance Act 2005 changes, the Revenue administrative practice of granting capital allowances in respect of buildings and structures erected in registered caravan parks was reviewed in consultation with my Department and the Department of Arts, Sport and Tourism. As a result of these deliberations, the Revenue Commissioners decided that retention of a non-statutory scheme on behalf of caravan parks was not appropriate and decided to withdraw it with effect from 1 January 2006. Allowances in respect of expenditure incurred before that date are not affected.

It should be noted that some of the expenditure that would typically be incurred by these caravan park operators may be eligible for the "plant and machinery" capital allowances but this would not generally include any buildings or structures.

I have no plans at this time to extend the existing regime of capital allowances to registered caravan and camping parks. However, I will bear this matter in mind for future consideration.