Joe Carey (Clare, Fine Gael)
Link to this: Individually | In context | Oireachtas source

341. To ask the Minister for Finance if he will extend a property tax incentive to larger towns, similar to that offered by the Living City Initiative; and if he will make a statement on the matter. [22250/15]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

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.

The Living City Initiative, which was enacted in Finance Act 2013 and commenced on 5 May 2015, was introduced following a comprehensive, independent ex ante cost benefit analysis.

This Initiative is targeting particular areas of six cities which are most in need of regeneration. I do not currently intend to extend the Initiative further to towns. However, my Department will closely monitor the progress of the Initiative in the six cities, and will keep the matter of potentially extending the relief further under review.

It is important to note that this is a targeted scheme, and is not intended as a wide-spread initiative, as it is focused at those inner city areas which are most in need of attention.