Gerald Nash (Louth, Labour)
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Question 44: To ask the Minister for Finance if he is giving consideration to making provision for tax based incentives for urban renewal schemes across the State and with particular reference to towns in Border counties which have suffered disportionately for periods of the current recession; and if he will make a statement on the matter. [27994/11]

Michael Noonan (Limerick City, Fine Gael)
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A wide range of property-based tax relief schemes were introduced up to the mid 2000s. These included area-based tax incentives such as urban renewal, town renewal, rural renewal and the living over the shop schemes. While many important developments were encouraged by these schemes independent reviews concluded that the tax costs of the initiatives were high relative to the outputs achieved. Independent reviews also assessed the success of the schemes in the economic and social development and regeneration of designated areas.

Following a number of reviews to assess the costs and benefits of property-based tax inventive schemes, these reliefs were wound down on a transitional basis so that virtually all such schemes have now been abolished. However, given the structure of these schemes there are ongoing legacy costs to the Exchequer as investors use their reliefs and capital allowances.

My Department is currently undertaking an economic assessment of the potential effects of restricting and/or abolishing these "legacy" tax relief schemes. The assessment includes responses to a public consultation and the results will be considered in the context of the Budget 2012.

While we are in the process of winding down existing schemes and given the current economic climate, it would be difficult to justify the allocation of resources to the introduction of new property-based tax relief initiatives. Indeed, in the current difficult budgetary circumstances, and given the requirement to reduce tax expenditures under the EU-IMF Programme it will be difficult to undertake any new tax incentive schemes. Rather, the Government through the Jobs Initiative is directing resources to assisting in employment generation, providing opportunities for those who have lost their jobs, and thus generating confidence in the economy. This initiative is focused on all counties including those in the border region.