Written Answers. - Section 84 Loans/Relief.

Pat Rabbitte

Question:

107 Mr. Rabbitte asked the Minister for Finance if he will categorise for each of the last five years the purposes for which money, qualifying for section 84 relief, was loaned by financial institutions; and, in particular, if he will give the amount for each year in respect of the beef industry.

Since the Finance Act, 1984, in order to qualify as a domestic sourced section 84 loan the money must have been lent to a borrower carrying on a trade which consists wholly or mainly of the manufacture of goods and must have been used by the borrower for the purposes of such a trade.

The term "manufacture of goods" includes activities which are regarded as the manufacture of goods under the manufacturing relief provisions of Chapter VI of the Finance Act, 1980. It also includes the selling by wholesale of agricultural products or fish by a 75 per cent subsidiary of an agricultural society or a fishery society, respectively. Up to 1 September 1986 a loan could also qualify as a section 84 loan if given in respect of a trade consisting wholly or mainly of the rendering of services in the course of a service undertaking in respect of which an employment grant was made by the Industrial Development Authority. This category of section 84 loan was terminated with effect from 13 May 1986 or, in some cases, 1 September 1986.

Prior to 12 April 1989 all exempted or 10 per cent trading operations carried on at Shannon Customs-free Airport also qualified for domestic sourced section 84 loans. Since that date no new such loans are allowed to companies carrying on service activities at Shannon Customs-free Airport. Companies carrying on manufacturing trades at Shannon Airport may, however, continue to avail of these loans.

Statistics are not available which would enable an estimate of the amount of such loans applicable to the beef industry to be given. Such information could not be obtained without undertaking inquiries which could be carried out only at a disproportionate cost.

Pat Rabbitte

Question:

108 Mr. Rabbitte asked the Minister for Finance if he will list for each of the past five years the financial institutions which sought and received tax relief in respect of section 84 loans; and the amount of money loaned by each institution in respect of which relief was granted.

I am informed by the Revenue Commissioners that their obligation to observe confidentiality in relation to the taxation affairs of individual taxpayers and small groups of taxpayers precludes them from giving the information requested by the Deputy.

I would, however, direct the Deputy's attention to the published annual reports of the Central Bank which include details of the total amount outstanding of section 84 loans made by the licensed banks.