Simon Coveney (Cork South Central, Fine Gael)
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Question 182: To ask the Minister for Finance if he received approval from the European Commission for the new tax incentive scheme announced to facilitate the relocation of facilities (details supplied) as part of budget 2009; and if he will make a statement on the matter. [42378/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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In my Budget speech on 14th October, I announced the introduction of a new tax incentive scheme to facilitate the removal and relocation of Seveso-listed industrial facilities which hinder the residential and commercial regeneration of Docklands in urban areas. The EU Seveso Directive seeks to protect public safety by placing land-use restrictions on new residential and commercial development near locations where potentially dangerous activities are undertaken. The Deputy will also be aware that I indicated in my speech that this scheme will be subject to clearance by the European Commission from a State Aids perspective.

I understand that there were some initial discussions with the EU Commission on the possible use of tax incentives to assist the regeneration of the Cork Docklands, but that these were undertaken by officials from a number of Departments represented on the Cork Docklands Development Forum and involved matters relating to the work of that Body. However, they did include the possibility of incentivising the removal and relocation of Seveso-listed industrial facilities, but this was only discussed in a general manner and did not cover specific proposals to secure their removal and relocation.

Discussions have not taken place on the incentive announced in my Budget speech and detailed in the Finance Bill which was published on 20th November. It is expected that officials from my Department will engage shortly with the EU Commission on the provisions contained in the Finance Bill. It should be noted that these provisions are of general applicability and are, therefore, wider than the narrower focus of the earlier, preliminary, discussions which focussed on Cork only.