Oireachtas Joint and Select Committees

Thursday, 10 November 2016

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach

Finance Bill 2016: Committee Stage (Resumed)

10:00 am

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael) | Oireachtas source

When the scheme was introduced in 2012 travel to Brazil, Russia, India, China and South Africa was included. The first extension of eligible countries was into 2013 and it included travel to Algeria, Democratic Republic of the Congo, Egypt, Ghana, Kenya, Nigeria, Senegal and Tanzania. These countries were included in order to further encourage the development of export markets by Irish-based enterprises, especially enterprises in the agricultural sector. The submissions in support of that extension were in the interest of food exporters by and large, and we gave that extension. In 2015 the list was further expanded to include travel to Japan, Singapore, South Korea, Saudi Arabia, United Arab Emirates, Qatar, Bahrain, Indonesia, Vietnam, Thailand, Chile, Oman, Kuwait, Mexico and Malaysia. This was in line with the Government's trade tourism and investment strategy as promulgated by the parent Department. The current Finance Bill proposes to add Colombia and Pakistan to the list of eligible countries and I have given the reasons for that particular expansion.

The scheme was introduced to diversify export markets and encourage employees to travel to non-traditional markets, including those presenting language barriers for Irish firms. Australia does not meet the requirements. In addition, exports to Australia are already doing well and were worth almost €1 billion in 2015. Recent growth in exports to Australia also indicates that no incentive is needed to encourage travel to this market.

Again, as Minister I decide, on the advice of the Department of Finance, whether to agree to make the extensions requested by the parent Department on behalf of its agencies. I do not have an insight into assessing anything beyond that.

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