Ref. Ares(2013)697534 - 15/04/2013
Ref. Ares(2014)69823 - 14/01/2014
Ms. Blanca Rodriquez Galindo
Head of Unit
State-Aid: Cohesion, R&D&I and Enforcement
Regional Aid
European Commission
Competition DG.
21 December 2009
Subject: State Aid N 660/2008 – Ireland – LIP – Hotel Capital Allowances in
respect of the Ritz Carlton, Powerscourt, Co. Wicklow.
Dear Ms. Rodriquez Galindo,
I wish to also acknowledge the recent email which I received from Andras Tari in
which he submitted a number of additional questions seeking clarification /additional
information. I trust that this letter and the Exhibits attached will comprehensively
address and serve to bring clarity to the questions in the email.
(1) I have attached a final copy of the reply to the questions sent on 23 July 2009.
Appendix A
(2) The condition at p.4.10 of the Guidelines on national regional aid, that aid for
initial investment must be made conditional, through its method of payment or
through the conditions associated with its acquisition on the maintenance of
the investment in question for a minimum period of five years, is met by virtue
of Section 274 Taxes Consolidation Act 1997.
Under the provisions of this section, the hotel capital allowances granted will
be withdrawn by the Irish tax authorities where the property is sold within
seven years of the building’s first use (i.e. 1 October 2008) and are therefore
conditional on the maintenance of the investment for a minimum of 7 years
through the conditions associated with the relief, thus meeting the minimum
period of five years contained in the condition at p.4.10 referred to above.
(3). The project satisfies the criteria of p.24 (a) and p.24 (b) of the MSF
2002 as it accounts for an additional 200 rooms to the national hotel room
stock of 4 and 5 star hotels of 10,739 in 2004 and 24,129 in 2008. The
proportion of the additional capacity relative to the relevant market in 2004 is
in the order of 1.86% and in 2008 is in the order of 0.83%.
As set out in our response of 19 October 2009, the Treasury Holdings Group is
not involved in the operation of the Westin Hotel and the Schoolhouse Hotel.
As owner of the properties, Treasury Holdings receives a rent from the
occupant and is not connected or involved in any way with the hotel
operations carried out on the premises. It therefore, is not privy to the
commercial information of its tenants, the hotel operators.
[However, even taking account of the Westin Hotel (5 star – 163 rooms) and
the Schoolhouse Hotel (4 star – 31 rooms), the criteria of p. 24 (a) and p. 24
(b) MSF 2002 continue to be satisfied. In this instance the proportion of
additional capacity relative to the relevant market in 2004 is 3.67% and in
2008 is 1.63%]. See Appendix B. Data compiled from Bórd Fáilte (Irish
Government Tourism Authority).
The turnover figures for hotel operations for the Ritz Carlton, Powerscourt,
Co. Wicklow for the first 3 months of operation i.e. 1 October 2007 – 31
December 2007 turnover was €4.211m and for the 2008 calendar year was
€17,032m. (These figures are commercially sensitive).
CONCLUSION
The Irish Authorities would welcome the opportunity to clarify any remaining matters
in relation to this project before the Commission comes to a decision.
Yours sincerely
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