Seamus Brennan
Ceist:15 Mr. S. Brennan asked the Minister for Tourism and Trade whether his Department has monitored the progress of the six special trading houses established under the 1988 special trading house scheme. [10248/96]
Ceisteanna—Questions. Oral Answers. - Special Trading House Scheme.
Mr. O'Sullivan
A total of 21 licences have been issued since this scheme was introduced in 1988 of which eight are actively trading according to information available to my Department.
Monitoring of the scheme takes the form of reviews which are carried out approximately every three years. When the scheme was last reviewed in 1992 figures showed that, while only about 20 per cent of initial projected exports were achieved, over two-thirds were new exports. It was recommended that the scheme continue for a further three years, subject to the incorporation of a number of changes, which were all adopted.
A further comprehensive review of the scheme has been initiated in my Department.
The Minister of State said that of the 21 licences issued eight are still actively trading. However, only about 20 per cent of initial projected exports were achieved. Does he agree it is necessary to carry out reviews far more frequently than every three years? Has there been any improvement because of the changes recommended following the last review?
Mr. O'Sullivan
Since 1988 there have been only 21 applications. In relation to the figure of 20 per cent, the important point is that over two-thirds was new business. That is the yardstick we would prefer to use. The scheme has been successful in that regard.
When was it last reviewed?
Mr. O'Sullivan
In 1992.
Am I right in saying that only eight are still operating?
Mr. O'Sullivan
A total of 21 licences have been issued since 1988, of which eight are still operating. There is one application under consideration and a further three are in the pipeline.
What is the collective annual turnover of the eight still trading?
Mr. O'Sullivan
Up to the end of 1991 total sales of £28 million were achieved. Projected sales were £136 million.
What was the turnover in 1995 of the eight still operating?
Mr. O'Sullivan
I do not have that information. The scheme is under review.
Is it proposed to abolish it?
Mr. O'Sullivan
There is no suggestion that it should be abolished. There are four applications in the pipeline.
I thought there was one.
Mr. O'Sullivan
There is one under consideration. A further three have indicated an interest in the scheme.
Am I correct in thinking that total turnover is less than £10 million per year?
Mr. O'Sullivan
Yes, if one divides the figure of £28 million. It is simple arithmetic.
A total of £28 million up to the present?
Mr. O'Sullivan
Up to 1991.
That was five years ago.
We may not have two Members standing and addressing each other across the floor. Please, let us get back to normal procedure.
Mr. O'Sullivan
The figure was £28 million up to 1991. This gives a figure of a little over £9 million per annum for the first three years.
What was the figure in the five subsequent years?
Mr. O'Sullivan
I do not have that information.
Why not?
Mr. O'Sullivan
I will supply it to the Deputy. The review is ongoing.
God help us.