Dáil Éireann debate -
Thursday, 6 May 1993

Vol. 430 No. 4

Written Answers. - BES Schemes.

Pat Cox

Question:

98 Mr. Cox asked the Minister for Finance the cost to the Exchequer of the various BES schemes, by sector, in tax foregone in each of the years from 1988 to 1992; and if he will give the best estimate of the number of jobs by sector, full-time and part-time, created as a result of these tax incentives.

Minister for Finance (Mr. B. Ahern):

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 foregone on investments notified to the Commissioners in the tax years 1987-88 to 1992-93, broken down by sector is as follows:

Year	Total	Manufacturing	International Services	Shipping	Tourism	Trading Houses	Other
	£m	£m	£m	£m	£m	£m	£m
1987-88	5.3	4.4	0.4	—	0.2	—	0.3
1988-89	13.5	7.1	0.7	1.8	3.4	0.1	0.4
1989-90	41.3	12.9	13.0	1.2	12.7	0.9	0.6
1990-91	31.2	15.2	1.2	0.9	13.8	0.1	—
1991-92	31.3	10.5	0.3	1.0	19.3	0.1	0.1
1992-93	10.4	8.5	0.6	—	1.2	Neg.	0.1

The total figures in the table have been revised slightly since they were previously supplied.

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 4,240 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.

The sectoral breakdown of the jobs was as follows:

3,138 additional jobs were identified in 275 manufacturing and international services companies which had received £36.9 million in BES investment at a tax foregone cost of £20 million approximately and £24.9 million in direct State aid;

1,000 additional jobs were identified in 63 tourism companies which had received £46.8 million in BES investment at a tax foregone cost of £23.5 million approximately;

78 additional jobs were identified in four shipping companies which had received £7.7 million in BES investment at a tax foregone cost of £3.9 million approximately;

28 additional jobs were identified in five special trading houses which had received £3.3 million in BES investment at a tax foregone cost of £1.7 million.

No breakdown is available between full-time and part-time jobs.