Doubts have been raised about the future of developments in Dublin's Custom House Docks area, including the proposed National Convention Centre, as the result of a statement by the European Commission in Brussels today. The EC has confirmed that it considers a range of tax sweeteners offered to tenants in Dublin's Custom House Docks Area since 1993 to be illegal. In a statement issued from its weekly meeting in Brussels the Commission said the double rent allowances and rates exemptions offered to the tenants had not received the necessary EU approval and were considered to be illegal aid.
The Commission is now expected to open proceedings to make the government recoup the revenue involved and Ireland will have a one month period to lodge a defence. In a further development, the Commission said it had received confirmation from the Irish authorities that these two forms of incentive, double rent allowances and rates exemptions, have been discontinued. This effectively means there is no prospect of two significant tax concessions being extended to new projects in the Custom House Docks area.
