Dáil Éireann díospóireacht -
Tuesday, 11 May 1993

Vol. 430 No. 5

Written Answers. - Tax Expenditures.

Mary Harney

Ceist:

52 Miss Harney asked the Minister for Finance the procedures, if any, which have been put in place for the costing of tax expenditures into project and programme evaluation in line with the recent report entitled Employment Through Enterprise.

Minister for Finance (Mr. B. Ahern)

Circular 1 of 1983 issued by my Department on 8 March 1983 provides guidelines on the practice to be followed in appraising and managing public sector expenditure proposals, especially capital expenditure. It is mainly concerned with setting out the broad principles involved in project appraisal and evaluation and with ensuring that those considering undertaking a project must submit a proposal covering all the realistic options, their costs and benefits and a recommendation as to the most cost-effective solution.

The circular is aimed mainly at central Government Departments and at bodies under their aegis such as health boards, local authorities and State-sponsored bodies. In so far as the projects and programmes in question are mainly those undertaken at Exchequer expense, the question of tax expenditures in relation to those projects does not arise.

However, Circular 1/83 provides that account should be taken of all relevant costs associated with a project. While tax expenditures are not explicitly referred to in the circular, the provision to which I have just referred would imply that regard should be had to any tax expenditures associated with a project.

Circular 1/83 has been under active review in my Department for some time and the question of whether any explicit reference should be made to tax expenditures will be borne in mind when finalising the revised version of that circular.