Renewal scheme to cost 750m

THE State’s Urban and Town Renewal Schemes will cost the Exchequer up to an estimated 750 million in lost taxes by July 2006.

The two renewal schemes, which have attracted a massive 3.8 billion in investment since they were set up in 1999, were due to expire at the end of 2004. But in the Budget last month, Finance Minister Charlie McCreevy extended the deadline for the schemes, and eight other property-based tax incentive schemes, until July 2006. Mr McCreevy cited the 2004 deadline as putting pressure on construction resources that might seriously jeopardise the prospect of projects being competed on time.

At the time of the Budget, the Department of Finance said it was not possible to calculate the revenue loss to the Exchequer as a result of the extension of the schemes.