The Department of Finance is currently awaiting word from the European Commission on whether approval for an amended Dublin Docklands Area Scheme is forthcoming, the Minister for Finance, Mr McCreevy, told the Dail last night.
The European Commission is objecting to the Dublin Docklands Area Scheme because it believes Ireland's improved economy means it should no longer be eligible for the double rent relief and rates remission available under area tax reliefs.
In the light of the objections, amendments had been made to the urban renewal scheme, which covers Dublin docklands, and the rural renew one, and had been included in the 1998 Finance Act, Mr McCreevy said.
"The new Urban Renewal Scheme and the business incentives for the Rural Renewal Scheme were formally notified to the EU Commission on September 17th, 1998 . . . The position as of today is that we are now awaiting the Commission's response to our last letter," he added.
Mr McCreevy said recent difficulties in securing EU approval for such tax incentive schemes stemmed from the European Commission believing that the Shannon Free Zone 10 per cent Corporation Tax status would be extended to Knock Airport in Co Mayo. But approval from the Commission came last December for the non-airport enterprise zones.
