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Mid-Shannon Corridor Tourism Infrastructure Scheme

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Mid-Shannon Corridor Tourism Infrastructure Scheme EUROPEAN COMMISSION Brussels, 19-III-2008 C(2008) 1189 Subject: N 751/2007 – Ireland Mid-Shannon Corridor Tourism Infrastructure Scheme Sir, 1. PROCEDURE (1) By electronic notification dated 14 December 2007, the Irish authorities notified the above-mentioned measure. The Commission requested additional information by letter dated 11 January 2008, to which the Irish authorities replied by letter dated 18 January 2007. 2. DESCRIPTION OF THE AID MEASURE 2.1. Objective of the aid scheme (2) The scheme aims to encourage the development of new tourism infrastructure and the refurbishment of existing tourism infrastructure in the mid-Shannon area. (3) Its objective is to contribute to the regional development of areas in the mid-Shannon corridor that are designated as assisted areas according to the Irish regional aid map for 2007-20131 in the framework of the Guidelines on national regional aid for 2007-20132 (hereinafter “RAG”). 1 State aid N 374/2006 – National regional State aid map: Ireland (OJ C 292, 1.12.2006, p. 11). 2 OJ C 54, 4.3.2006, p. 13. Mr Dermot AHERN T.D. Minister for Foreign Affairs 79-80 St Stephen’s Green Dublin 2 Ireland 2.2. Legal basis (4) The scheme is based on Chapter 12 of Part 10 of the Taxes Consolidation Act 1997 (as amended by section 29 of the Finance Act 20073 and section 27 of the Finance Act 2008). 2.3. Authority granting the aid (5) The scheme is administered by the mid-Shannon Tourism Infrastructure Board (Department of Arts, Sport and Tourism) in consultation with the Office of the Revenue Commissioners (Department of Finance). 2.4. Geographical scope of the scheme (6) The scheme applies to the qualifying areas within the mid-Shannon corridor as designated within the following NUTS 2 / NUTS 3 level regions: (a) IE01 - Border, Midland and Western: – IE012 - Midland: • IE012 2 03 Offaly: the district electoral divisions of Ballycumber, Banagher, Birr Rural, Birr Urban, Broughal, Cloghan, Clonmacnoise, Derryad, Doon, Drumcullen, Eglish, Ferbane, Gallen, Hinds, Hunston, Killyon, Lumcloon, Lusmagh, Mounterin, Moyclare, Shannonbridge, Shannonharbour, Srah, Tinamuck. • IE012 2 04 Westmeath: the district electoral divisions of Athlone East Rural, Athlone East Urban, Athlone West Urban, Ardnagragh, Auburn, Ballymore, Bellanalack, Carn, Castledaly, Doonis, Drumraney, Glassan, Killinure, Moate, Mount Temple, Moydrum, Muckanagh, Noughaval, Templepatrick, Tubbrit, Umma, Winetown. – IE013 - West: • IE013 3 02 Galway: the district electoral divisions of Abbeygormacan, Abbeyville, Balinasloe Rural, Ballinasloe Urban, Ballyglass, Ballynagar, Bracklagh, Clonfert, Clontuskert, Coos, Derrew, Drumkeary, Drummin, Eyrecourt, Kellysgrove, Killimor (Portumna rural area), Kilmacshane, Kilmalinoge, Kilquain, Kiltormer, Kylemore, Laurencetown, Leitrim, Lismanny, Loughatorick, Marblehill, Meelick, Moat, Pallas, Portumna, Tiranascragh, Tynagh, Woodford. 3 See http://www.revenue.ie/pdf/finance_act_2007.pdf. 2 • IE013 3 04 Roscommon: the district electoral divisions of Athleague East, Athleague West, Athlone West Rural, Ballydangan, Ballynamona, Castlesampson, Caltragh, Cams, Carnagh, Carrowreagh, Cloonburren, Cloonown, Crannagh, Creagh, Culliagh, Drumlosh, Dysart, Fuerty, Kilcar, Kiltoom, Lackan, Lecarrow, Lismaha, Moore, Mote, Rockhill, Roscommon Rural, Roscommon Urban, Scregg, Taghmaconnell, Thomastown, Turrock. (b) IE02 - Southern and Eastern: – IE023 - Mid-West: • IE023 3 01 Clare: the district electoral divisions of Ayle, Ballynahinch, Boherglass, Caherhurley, Cappaghabaun, Carrowbaun, Cloonusker, Coolreagh, Corlea, Derrynagittagh, Drummaan, Fahymore, Feakle, Inishcaltra North, Inishcaltra South, Killaloe, Killokennedy, Killuran, Kilseily, Lackareagh, Loughea, Mountshannon, O’Briensbridge, Ogonnelloe, Scarriff. • IE023 3 04 North Tipperary: the district electoral divisions of Aglishcloghane, Ardcrony, Ballina, Ballingarry (in Borrisokane rural area), Ballygibbon, Ballylusky, Ballymackey, Ballynaclogh, Birdhill, Borrisokane, Burgesbeg, Carrig, Carrigatogher, Castletown, Cloghprior, Clohaskin, Cloughjordan, Derrycastle, Finnoe, Graigue (in Borrisokane rural area), Greenhall, Kilbarron, Kilcomenty, Killoscully, Kilkeary, Kilmore, Kilnarath, Knigh, Lackagh, Lorrha East, Lorrha West, Mertonhall, Monsea, Nenagh East Urban, Nenagh Rural, Nenagh West Urban, Newport, Rathcabban, Redwood, Riverstown, Terryglass, Uskane, Youghalarra. (7) These areas are designated under the Irish regional aid map for 2007-2013 as assisted areas eligible for national regional State aid under the derogation of Article 87(3) (c) of the EC Treaty: – The NUTS 2 level region IE01 – Border, Midland and Western (regions IE012 – Midland and IE013 – West) is eligible at an aid ceiling of 30% gross grant equivalent (GGE) until 31 December 2010 and an aid ceiling of 15% GGE as from 1 January 2011. – Within the region IE023 – Mid-West, the LAU 1 level local administrative units (counties) of IE023 3 01 Clare and IE023 3 04 North Tipperary are eligible for transitional coverage for the period from 1 January 2007 to 31 December 2008 at an 3 aid ceiling of 10% GGE and for the whole period 2007-2013 for higher rates of SME aid only4. 2.5. Beneficiaries (8) The scheme applies to all categories of enterprises. The foreseen number of beneficiaries is in the range of 101 to 500. (9) The scheme does not apply to firms in difficulty in the meaning of the Community guidelines on state aid for rescuing and restructuring firms in difficulty5. 2.6. Sectoral scope of the scheme (10) Assistance under the scheme is provided to undertakings engaged in one or more of the following activities under the NACE revision 1.1 classification: – H055 – Hotels and restaurants; – I0633 – Activities of travel agencies and tour operators; tourist assistance activities n.e.c.; – O092 – Recreational, cultural and sporting activities. Assistance under the scheme is also provided to undertakings which own and lease qualifying units to undertakings carrying out tourism activities under the three abovementioned activities. Such activities fall under the following classification: – K0702 – Letting of own property6 2.7. Nature and form of the aid (11) Aid is awarded in the form of an accelerated depreciation of capital over seven years in respect of construction and refurbishment expenditure incurred on eligible buildings over a qualifying period of three years (2008-2011). Depreciation is allowed at 15% per annum for six years and 10% in year 7 in comparison with the general rate of 4% per annum over 25 years for industrial buildings. 2.8. Eligible expenses (12) The aid provided under the scheme applies only to expenditure incurred on the construction of new buildings and structures or on the refurbishment of existing 4 In addition, no aid is permitted in this region for projects with eligible expenditure exceeding EUR 25 million. 5 OJ C 244, 1.10.2004, p. 2. 6 Since these activities (K0702 – Letting of own property) fall outside the definition of tourism activities laid out in Article 2(1)(r) of Commission Regulation (EC) No 1628/2006 (OJ L 302, 1.11.2006, p. 29), the scheme cannot be considered as not being targeted to a specific sector. The measure could not therefore be exempted from notification under Article 7(b) of the above-mentioned regulation. 4 buildings and structures7. For refurbishment projects, the eligible expenditure must exceed 20% of the market value of the property before the start of works. (13) The nature of the buildings and structures which may qualify as eligible expenditure under the scheme is set out in the certification guidelines issued by the Minister for Arts, Sport and Tourism in consultation with the Minister for Finance. (14) While the accelerated depreciation of capital will be available over seven years, beneficiaries are required to maintain the qualifying assets for 15 years. If the assets are disposed of within this 15-year period the corresponding aid must be repaid by the beneficiary. 2.9. Necessity of the aid and mechanism for granting the aid (15) An application for the aid must be submitted before work is started on the projects. Projects must get approval in advance (for which an application must be made within one year of the commencement of the scheme) and also must get formal certification after completion. This approval and certification is given by the mid-Shannon Tourism Infrastructure Board and is carried out in accordance with the certification guidelines. (16) The aid is granted on a discretionary basis following a decision of the mid-Shannon Tourism Infrastructure Board. In order to qualify for the assistance available under the scheme a project must comply with the criteria laid out in the certification guidelines in relation to the following matters: (a) The contribution which the project/building or structure would make to tourism development in the mid-Shannon corridor or the qualifying mid-Shannon area; (b) Coherence with national tourism strategy; (c) Environmental sensitivity, having particular regard to any area which is a European site (e.g. special area of conservation or special protection area), a natural heritage area, a nature reserve or a refuge for fauna; (d) The amenities and facilities required to be provided in each type of project; (e) The nature of, and maximum extent to which, accommodation buildings (if any) are allowable in each type of project; (f) Specific standards of design and construction in relation to buildings and structures which may qualify for the relief provided under the scheme; (g) Relevant planning
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