asked the Minister for Industry, Commerce and Energy if he will make a statement on the present and prospective position of export tax relief as an incentive to industrial development.
Ceisteanna—Questions. Oral Answers. - Export Tax Relief.
25.
Following my initial visit to Brussels to discuss this matter I made a detailed public statement on 21st September last and copies of that statement were made available to Deputies. Since then discussions have continued with the European Commission concerning the establishment of new arrangements to co-ordinate the regional aids of all member states, including Ireland. I paid a further visit to the commissioner concerned on 17th November. A document has now been drafted by the Commission and will be finalised following consultations with the member states beginning in mid-January, 1978. This document enunciates general principles only and I understand that the manner in which these principles will be applied to individual member states will be settled in bilateral discussions with the Commission.
As the Deputy is no doubt aware, export sales relief as an aid is generally considered to be incompatible with the spirit of the Treaty of Rome. We have always accepted that at some stage it might be necessary to change the system. However, it was recognised in the declarations associated with Protocol 30 to the Accession Treaty that if the system had to be changed it would be replaced by one which would be equally effective as an incentive.
The Government have decided that the time has now come when we must look for a new system. Apart from any other consideration, export sales relief may in the coming years begin to lose its full attractiveness as an incentive for new industry because of the expiry date of 1990. A number of possible alternatives are being examined but a final decision has not been taken and in any event a change will not be made for some years. In the meantime those enterprises which have qualified for export sales relief, or which may qualify before the changeover to the new system, will continue to benefit up to the expiry date of 1990. It is our intention that those who qualify under the new system will be in a position at least as satisfactory as that provided by our present system.
I am grateful for the comprehensive answer. Was it in January the Minister said this document would be published?
The discussions will begin on the present working document, which is about fourth in this series, on 18th January and they will go on for some time. I cannot say how long they will take.