Brian Lenihan Jnr (Dublin West, Fianna Fail)

We were all at cross purposes. In any event, while the mid-Shannon issue is simply a matter of a time extension, the Deputy has proposed that applications for tax relief in respect of registered nursing homes, convalescent homes, mental health centres and private hospitals be accompanied by the analysis as well. The key recommendation of Indecon on all of this was that the costs and benefits of any new proposed tax incentives should be assessed prior to their introduction. My predecessor announced in budget 2006 that we would be implementing this recommendation as far as appropriate. The schemes of capital allowances for registered nursing homes, convalescent homes and private hospitals were introduced before the consultants carried out the 2005 review and made a recommendation. On the basis that they recommended that these schemes should be continued, it was concluded that the benefits outweighed the costs involved. I am now terminating these schemes and I do not see any point in requiring a cost-benefit analysis to be carried out at this late stage. Where it is considered appropriate, this kind of analysis should and will be carried out before the introduction of a new scheme and not when a scheme is already in operation and being would down.

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