Special tax reliefs granted to seven airports

IN a pre-election move, the Cabinet has approved major new tax incentives for businesses investing around the State's seven regional airports and in two unemployment black spots in Dublin.

Last night some Government TDs and at least one Minister were claiming that the new incentives would lead to "thousands" of new jobs. The Cabinet agreed the package would include the airports at Knock, Sligo, Donegal, Faranfore in Co Kerry, Galway, Waterford and Cork. Sites in Gallanstown in west Dublin and Finglas in north Dublin have also been given special tax status, and one or two further areas may be added.

The decision, which Government critics will see as auction politics, came the day after Fianna Fail announced it favoured special tax status for the airports. Government sources insisted that the Coalition had been considering the move for some time.

The decision on which areas would benefit is understood to have followed lengthy haggling within the Coalition. Discussions in recent weeks on giving special reliefs to Knock led to mounting pressure to offer the same to the other regional airports. But it became clear only this week that the measures would be approved, indicating that some Ministers had reservations.

No announcement of the plan came after yesterday's meeting. Two local Labour TDs were the first to announce the new Dublin enterprise zones.

The Minister for Tourism and Trade, Mr Kenny, who is from the area, announced the plan for Knock and forecast that it would create 2,000 new jobs. A US company closely identified with billionaire Mr Ross Perot would develop a major project there, he said.

The necessary legislation will be published today as amendments to the Financial Bill. Investors around the airports will benefit from double rent reductions, rates relief, special capital allowances and wider availability of the 10 per cent tax rate.