Questions to the Minister for Finance (Mr Michael Noonan, TD)
To ask the Minister for Finance in view of the fact that Cork city has had a decline in population between the two most recent census of population and that the city, similar to both Limerick and Waterford, has a negative relative deprivation index, if he will consider extending the pilot phase of the Living City Initiative to include Cork; and if he will make a statement on the matter. – Jerry Buttimer.
To ask the Minister for Finance the anticipated cost to the Exchequer of the Living City Initiative and the expected economic impact of the scheme; and if he will make a statement on the matter. – Jerry Buttimer.
For WRITTEN answer on Tuesday, 16th July, 2013.
I propose to answer PQs 180 and 181 together.
Finance Act 2013 includes a section on the Living City Initiative which introduces a scheme of tax incentives focusing on the regeneration of the historic centres of some of our main cities. The scheme which will be introduced by Ministerial order, will apply in the first instance on a pilot basis only to specified regeneration areas in Waterford and Limerick.
I indicated in my budget speech in December last year that I would examine proposals for a targeted incentive for already identified regeneration areas. The tax relief that will apply under this scheme will operate for five years from the date of commencement.
However, it is my intention that before it begins, the scheme will be subject to an ex ante cost benefit analysis and, subject to a positive outcome from the analysis, I will seek EU approval under State Aid rules for this initiative to be commenced for Limerick and Waterford cities.
The Deputy might like to know that the tender for the cost benefit analysis project has been awarded and I expect to have the final report before this year’s Budget.
As regards the anticipated cost of this measure to the Exchequer, it will depend entirely on take up of the initiative.