asked the Minister for Finance if he will undertake a general review of the policy initiated in 1958 of attracting multinational companies and investment through the use of tax incentives and exemptions with a view to concentrating resources into native Irish public and private sector development.
Written Answers. - Tax Incentives and Exemptions.
37.
Contrary to the impression given in the question, I would point out that the principal tax incentives and exemptions are available to both Irish and foreign companies. The effectiveness of these incentives and exemptions is kept under regular review.
The continued attraction of foreign industry is of vital importance to this country. It has been the policy of successive Governments to give tax incentives and reliefs to foreign as well as Irish companies since we could not otherwise compete for our share of international investment. At the same time, as was indicated by my colleague the Minister for Industry and Commerce in reply to a similar question on 31 May, changes have been made this year in our industrial support measures which will now focus more clearly on developing home-based Irish industry.
This year's Finance Act introduces a major revamping of corporation tax with a phased reduction in rates and a parallel cutting-back on accelerated capital allowances for investment in fixed assets. I am satisfied that these changes will help to promote private sector development and to encourage investment in jobs rather than fixed assets.