Lisa Chambers (Mayo, Fianna Fail) | Oireachtas source

On current tax expenditures, do any of them need to prioritised in terms of review? How does Ireland compare internationally in terms of the scale and revenue foregone from tax expenditures? Are we better than average or broadly in line with other similar countries?

Dr. Collins has already responded to questions from Deputy Eamon Ryan on how to assess if money is being well spent. When it comes to tax expenditures, because it is tax forgone rather than tax collected we have a slightly different perception of that money and a different relationship with it. When we collect revenue and expend it on behalf of the State we scrutinise that spend closely but we tend to forget about tax expenditures because it is money that was never collected in the first instance. How do we assess if this money is well spent and what type of criteria should be applied in that regard? For example, should we examine job creation as a result of tax expenditure or spin-off industries that result from it and so on? What criteria should we use to assess if money is well spent?

In response to Deputy Boyd Barrett, Dr. Collins mentioned that some of the research and development might have happened with or without a particular tax credit or tax expenditure. How do we prevent abuse of this generous offering from Government? For example, how do we encourage research and development that would not happen ordinarily without this particular assistance and at the same time ensure it is not used to fund research that would have happened without it? How do we close off that loophole?