The Pilot TAX Relief Scheme for Certain Resort Areas was introduced not by Fianna Fail but by the then coalition government comprising Fine Gael, Labour and Democratic Left in 1995. Mr Enda Kenny (FG) was the Minister for Tourism who initiated it and Mr Ruairi Quinn, then leader of the Labour Party, was the Minister for Finance who incorporated the scheme into the 1996 Finance Act.
It was due to expire after two years, but the present Government extended the deadline twice - first until June 30th this year and then until December 31st, to facilitate developments in the planning process.
The tax incentives were supposed to attract private sector investment in rejuvenating 15 down-at-heel seaside resorts so that they could "meet the demands of the modern holiday-maker," according to the brochure.
Apart from Courtown, the scheme applies to Bundoran, Enniscrone, Achill Island, Westport, Salthill, Lahinch, Kilkee, Ballybunion, Clonakilty, Youghal, Tramore, Arklow, Bettystown and Clogherhead.
Tax incentives apply to a wide range of development, including hotels, guesthouses, hostels, B&Bs and all-weather facilities. However, it would appear that the bulk of investment has gone into holiday homes.
Last March the Minister for Finance, Mr McCreevy, said in response to a Dail question from Mr Joe Higgins (Socialist Party) that the scheme has thus far cost the Exchequer at least £110 million in tax revenue.
Mr McCreevy said this estimate was based on the June 30th deadline and would have to be "revised significantly upwards" to take account of the potential cost of extending the scheme for a further six months.
The impact of the scheme was reviewed by Bord Failte and the Department of Tourism in 1997/98. However, because this was done before Freedom of Information took effect, the report was suppressed.
Friends of the Irish Environment, which has consistently opposed the scheme, said it had served only as "a tax avoidance vehicle for rich non-residents" and pushed property prices beyond the reach of local people.
"It is scandalous that the public should be subsidising such a scheme," which had "violated every principle of sustainable tourism, turning some towns into acres of dark and empty houses," FIE complained.
