Dáil Éireann debate -
Wednesday, 10 Feb 1993

Vol. 425 No. 7

Written Answers. - Business Expansion Scheme.

Pat Rabbitte

Question:

127 Mr. Rabbitte asked the Minister for Finance the number of jobs created each year by the business expansion scheme since its introduction; and the cost to the Exchequer of the scheme, in terms of tax foregone, for each year since it was introduced.

Minister for Finance (Mr. B. Ahern)

I am informed by the Revenue Commissioners that statistics relating to the number of jobs created each year by the Business Expansion Scheme are not available. However, in late 1990 a general review of the scheme was conducted by my Department in conjunction with the Revenue Commissioners and the Departments of the Marine, Tourism and Transport and Industry and Commerce. The review identified growth of approximately, 4,250 jobs in some 347 companies which had received almost £95 million investment under the scheme at a cost of some £49 million to the Exchequer.

Statistics on the Business Expansion Scheme are compiled by the Revenue Commissioners on the basis of amounts invested in the scheme as formally notified to them in the tax year ending on 5 April each year. On that basis, the estimated tax forgone on investments notified to the Commissioners in the tax years 1984-85 to 1992-93 are as follows:

Year	Tax Cost
	£m
1984-85	0.5
1985-86	2.4
1986-87	3.7
1987-88	5.4
1988-89	13.6
1989-90	41.9
1990-91	31.1
1991-92	31.3
1992-93	9.6

The figures for 1992-93 reflect investments notified to the Revenue Commissioners up to 5 February, 1993.

Since 1991 the Revenue Commissioners have been collecting figures with a view to assessing the growth in employment in firms assisted by the BES. It will be some time before any reliable trends become apparent from these figures.