This is an HTML version of an attachment to the Freedom of Information request 'Ireland National Asset Management Agency Deferred Mortgage Initiative'.




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be withdrawn by the Irish tax authorities where the property is sold within 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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