andMr. McQuillan asked the Minister for Finance to what extent, if any, taxation concessions recently made available to industrialists as an incentive to the promotion of capital investment in the Republic will be permissible under conditions of full membership of the EEC.
Ceisteanna—Questions. Oral Answers. - EEC: Tax Concessions to Industrialists.
27.
Under the Rome Treaty, the Commission of the EEC has the function of deciding which aids granted by member States are incompatible with the provisions of the Treaty by reason of the fact that they distort or threaten to distort competition and the time within which such aids should be abolished or modified. For this purpose the Commission is required to examine, with the member States, all systems of aids existing in member States. Until such an examination is made in our case it will not be possible to say which aids might be regarded as incompatible with the Treaty. The relevant articles of the Treaty (Nos. 92 to 94) contain provision for the exemption of aids intended for specified purposes, including the development of certain activities or of certain economic regions.
Has the Minister any idea, based on the treatment up to the present of this problem in the member countries, of what is the likely development as far as Ireland is concerned? Is the general principle likely to be accepted or refused?
No; I am afraid I could not express any opinion on that.