THE deadline for the Urban Renewal Scheme is to be extended by another year. The scheme, which provides generous tax breaks to developers and investors, was to expire on July 31st next and strict guidelines on work in progress by that date, will be laid down.

It is understood that a number of schemes, including some in Dublin's north inner city, will benefit from the extension. Among the projects under construction are a retail and residential development on the old Jameson Distillery site in Smithfield.

Announcing the deadline's extension yesterday, Minister of State for Housing, Ms Liz McManus, said there had been indications that there would be difficulties with some very significant schemes being completed on time.

There were also some other planned developments which may not have been started and completed within the remaining seven months. She said an extension of the current scheme was needed to retain the "significant momentum" which built up over the last two and a half years.

However, she warned developers to take full advantage of the extension and to ensure that the problem of partly completed projects did not arise again next year.

Ms McManus said if a project were to avail of the extra year, at least IS per cent of expenditure on it must be incurred by July 31st, next, the date on which the scheme would have expired.

Compliance with this requirement will be subject to certification by the relevant local authority, in accordance with Department of the Environment guidelines.