Frank Feighan (Roscommon-South Leitrim, Fine Gael)
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Question 138: To ask the Minister for Finance his views on a reduction in VAT in Budget 2010 due to difficulties encountered by Border towns and traders; his further views on a special tax designation status for all towns designated hubs and gateways in the national spatial strategy with a view to regeneration of business. [41236/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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With regard to reducing VAT, you will appreciate that it is the usual practice for the Minister for Finance not to speculate or comment in advance of the Budget on what it will contain and I do not propose to deviate from that practice. In relation to proposals for a special tax designation status for all towns designated hubs and gateways in the national spatial strategy, I have been informed by the Department of the Environment, Heritage and Local Government that the National Spatial Strategy outlined core principles and policies to provide for a better regional spread of development across the country, to provide for more sustainable and economic patterns of development through consolidation of key urban areas and preservation of environmental and heritage resources and to grow those key strategic gateways and hubs that have the capacity to achieve critical mass and become economic drivers for the wider regions.

The 2004 Regional Planning Guidelines which are currently being updated for adoption in 2010 translate NSS principles into regional and local priorities and also include regional economic analysis and actions, prepared in partnership with the development agencies, to promote and drive the region's growth, including through facilitating and attracting businesses to the region. There are currently no plans to introduce a tax designation status for all gateway cities and hub towns.