Dáil Éireann debate -
Wednesday, 27 Nov 1991

Vol. 413 No. 6

Written Answers. - Depreciation Rates for Businesses.

Michael Noonan

Question:

71 Mr. Noonan (Limerick East) asked the Minister for Finance if his attention has been drawn to claims by the Small Firms Association that the application of depreciation rates of 10 per cent or 12 per cent per annum on a reducing balance basis are not commensurate with true levels of depreciation especially in small high technology businesses; if he has any plans to deal with this anomaly in so far as it affects high technology businesses; and if he will make a statement on the matter.

Minister for Finance (Mr. B. Ahern)

The Small Firms Association made such a claim in a press release of 31 October 1991. A copy of this press release has been received and has been examined. My predecessor announced last May that there would be a review of the annual wear and tear capital allowances for plant and machinery. When making this announcement he emphasised that an important consideration for this review would be the Exchequer implications. This review is now virtually completed, and, in line with normal practice, if there is to be any change in the existing position, it will be announced in the budget.