Vol. 468 No. 4
68 Mr. Lenihan asked the Minister for Finance the proposals, if any, he has to ensure that the Economic and Social Research Institute is not placed in an unfair competitive advantage to private firms in the provision of external consultancy services. [14929/96]
The ESRI, in providing consultancy services, has to compete in the open market.
The Institute is in receipt of an Exchequer grant for part of its funding, which is to cover the cost of research of public interests, and has the status of a non-profit-making exempt body for VAT purposes. The Revenue Commissioners are, however, empowered to charge VAT on any of its activities which they deem to be significiantly outside that status. In tendering for consultancy contracts the institute takes the same commercial approach to costing its tenders as would other economic and social consultancies, such as the universities and private firms. Consequently the Institiute does not enjoy an unfair advantage, and must seek to succeed in its tenders on the same basis of quality and price as other competitors.
