Vol. 405 No. 3
58 Mr. Quinn asked the Minister for Finance if he will outline the number of business expansion scheme proposals which were partially launched, including ones supported by the Minister for Tourism, Transport and Communications, which will now be cancelled following his budget speech; the total value of each scheme; the purposes for which it was intended and the value of construction for each scheme.
67 Mr. Finucane asked the Minister for Finance if he will outline the tourism projects which are affected by the withdrawal of the business expansion scheme.
I propose to take Questions Nos. 58 and 67 together
It is estimated that of the order of 80 projects are affected to one degree or another by the budget measures relating to the business expansion scheme, and that they proposed to raise £100 million or more under the scheme, with a potential cost to the Exchequer of around 50 per cent of the amount raised. The vast majority of those projects were related to accommodation development and, while a precise estimate is not available, it is likely that the construction content would be considerable. The question of whether the budget measures restricting the scope of the BES, which were necessary for the funding of the social welfare and income tax improvements, caused the cancellation of a significant number of projects is speculative. Some projects may go ahead notwithstanding, on the basis of alternative sources of finance; it is unlikely that all the projects in question are dependent on funding subsidised through the BES scheme, predominantly at the highest rate of income tax. Neither is it clear that all the proposals would have come to fruition in the absence of these measures, especially in view of the large amount of BES funding being sought. I should also point out that the elimination of certain sectors from the ambit of the scheme is likely to facilitate the raising of funds for other areas and that the extension of its duration for a further two years from 6 April will enable many new projects to benefit.
