asked the Minister for Finance if he agrees with the opinion of the McKinsey Report that export tax relief to export products prematurely is an impediment to development; and if he will recommend that a review of the present tax system in this regard should be made to encourage the processed meat products export trade.
Ceisteanna—Questions. Oral Answers. - Export Tax Relief.
11.
Export sales relief provides a remission of tax on the profits derived by companies from the export of goods manufactured within the State. The relief does not specify the extent of the process of manufacture to which goods must be subjected before they can be regarded as coming within the ambit of the relief. The recommendation in the report referred to by the Deputy that the relief should be substantially reduced or abolished in relation to specific items in order to provide an incentive for the manufacture within the State of by-products of those items could have a damaging effect on the industries concerned, particularly on their employment potential, without necessarily achieving the desired objective. This appears to have been recognised by the authors of the report who qualify their recommendation by a statement to the effect that there were many other economic and public policy issues that would need to be considered before a move on the lines recommended by them could be contemplated. Accordingly, I am not satisfied that the initiation of a review on the lines suggested by the Deputy would serve any useful purpose.