Europe 'having a go' at Ireland

EuropeanDecision

By Thomas Felle

THE urban renewal scheme to revive the Liberties / Coombe area has suffered its most serious set-back at the hands of Brussels officials.

The European Commission has decided to launch an inquiry against the Government because it failed to apply for permission to finance tax incentives contained in the plan. The incentives must be approved in Brussels before getting the green light.

The Liberties' renewal plan contains proposals for rent and rates relief, which are illegal under EU law. It was due to receive approval from the Commission last August, however, the decision has been deferred because questions were raised over the tax incentives.

The Commission described the actions of the Government as "illegal and incompatible with the EC Treaty" and added it considered the action in breach of "operating aid directives - contrary to EU competition policy".

The failure by the Department of Finance to seek permission to continue incentives twice, in May 1993 and again in 1995, has been described by the Department as "an honest administrative error".

A spokesperson for the Department of Finance has confirmed they will not now be making any future applications to Brussels for rent and rates relief. He added it was unlikely that current applications which included rent and rates relief proposals would be granted. "The Commission are taking this hard line because they want to have a go at Ireland," he said.