The European Commission (EC) is investigating double rent relief and rates remissions granted to tenants around Dublin’s Custom House Docks. The investigation could mean that companies moving into the £85m second phase of the area’s International Financial Services Centre (IFSC) could lose out financially.
No moves to the IFSC are thought to be threatened, but tenants with prelets in the 37,160 sq m (400,000 sq ft) second phase – including Citibank (which is taking 19,973 sq m (215,000 sq ft), AIG, Bank of Ireland, FBD and solicitors A&L Goodbody – might not qualify for rent or rate relief.
The Irish government, in the wake of the investigation, has stopped awarding either type of relief to the docklands.
Local agents say that professional firms and partnerships taking offices there, such as A&L Goodbody, will be particularly hard hit as they already pay tax at a higher rate than the corporation tax rate of 10%, and are more reliant on the incentives.
Although the EC has approved capital allowances for buildings in the area, it considers double rent relief and rates remissions to constitute illegal aid because it was never notified by the Irish government of the aid.
Charlie McCreevy, the Irish Minister for Finance, has argued that the EU has approved similar relief for enterprise zones in Dublin and is set to appeal to the EC. He said the government intends to put the “strongest possible case” to the commission and pointed out that these reliefs are routinely applied to Enterprise Zones elsewhere in the EC.
EGi News 21/01/99
Do you have a comment about this story? Send a note to the editor.
