Kieran O'Donnell (Limerick East, Fine Gael)
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Question 151: To ask the Minister for Finance his plans regarding a review of tax incentives to be put in place in respect of work to be carried out under Limerick regeneration; when he expects such a review to commence; the length of time it may be expected to take to carry out; the possible composition of any such review group; and if he will make a statement on the matter. [10385/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The Government continues to demonstrate a strong commitment to the Limerick Regeneration Programme. In December 2009, the Government considered the ten year Limerick Regeneration Programme and reaffirmed its commitment to the vision outlined in the Programme.

The Government has asked the Limerick Regeneration Agencies to complete its work on the Programme and to prepare a Phase 1 Implementation Plan which is expected to be completed by end of the first quarter of 2010, after which Government will consider the matter again.

The Agencies are currently developing the Implementation Plan, with expert advice from the National Building Agency, which will set out the planning issues, projected costings and value for money considerations associated with the housing and other key elements of public investment involved in Phase 1.

The economic development options and the opportunities and incentives to secure the essential private investment required are also under examination. Some €1.4 billion of private investment as well as €1.65 billion in public investment was originally envisaged as required to deliver on the Master plan objectives.

To-date the Government despite constraints on capital funding has provided in excess of €50m in the 2.5 years since the initiative commenced in mid-2007. This funding has contributed to increased stabilisation of the four areas, through rehousing, a planned programme of demolitions, environmental improvement works, CCTV infrastructure, social and community supports etc.

A further €25m was provisionally allocated by the Department of Environment, Heritage and Local Government in support of the Programme in 2010 and the programme of works to be carried out is currently under discussion between the Agencies, Limerick City Council, Limerick County Council and Clare County Council. Additional investment has been provided in terms of Garda resources, as well as other State interventions through Education, Youth, Health, Training and Community facilities and services targeted at the areas.

Work has been progressing in 2009 on the detailed planning and design of two sheltered housing projects serving Myross and Ballinacurra Weston and a Project Team is working to advance the projects to tender stage in 2010. Two further projects serving the Southhill and St Mary's Park areas are currently being developed within the Project Team. While much attention to date has been focused on demolition and other essential works associated with the preparing of the areas for physical regeneration, the relevant agencies acknowledge the importance of progressing "new-build" projects at an early stage and the Government is committed to facilitating this within the overall resources available for 2010.

Tax Incentive Measures have provided a vital stimulus to the economy in Ireland, but we also recognise that there is a heavy cost on the Exchequer. This year and for the years 2011 and 2012 the Government needs to achieve savings in the region of €3 billion in each year. There are many conflicting demands on the Government at this time. New innovative thinking is required in tacking projects such as the Limerick Regeneration Masterplan. However, the inclusion of tax incentives within such plans require very careful examination, given the current difficult Exchequer position.