Dáil Éireann debate -
Wednesday, 7 Jun 2000

Vol. 520 No. 4

Written Answers. - Business Expansion Scheme.

Denis Naughten

Question:

81 Mr. Naughten asked the Minister for Finance the plans if any he has to establish a BES scheme to provide for a helicopter emergency medical service (HEMS) in view of the fact that there is a number of interested companies who would be prepared to support such a project; and if he will make a statement on the matter. [15792/00]

Minister for Finance (Mr. McCreevy):

The business expansion scheme was introduced in 1984 and is due to operate until 5 April 2001. The scheme will be reviewed again before any decision is taken on whether to extend it beyond 5 April 2001.

Owners of businesses looking for outside investors or investors looking to invest in unquoted companies may be able to take advantage of the BES relief. The scheme provides individual investors with tax relief in respect of investment in certain activities such as manufacturing, certain tourism activities and internationally traded services.

As the Deputy will be aware, the 1998 Finance Act reduced the amount that a company could raise under the BES from £1 million to £250,000. The limit was reduced to refocus the relief on start-up/smaller companies which may find it hard to raise finance elsewhere. This was the orig inal intention of the BES. It was also done to reduce the growing cost of the relief to the Exchequer.

It is likely that the cost of a helicopter emergency medical service would, in all likelihood, far exceed the BES company limit. However, if a proposal in this regard is forwarded to me I will consider it in the context of the next budget and Finance Bill and the general review of the scheme.