Brian Hayes (Dublin South West, Fine Gael) | Oireachtas source

I understand there was a substantial discussion with the Minister on the scheme of accelerated capital allowances for the construction and refurbishment of certain buildings and structures. The general disposition of the Senator in all of these matters is why at a time of difficulty and when there is very little money around we are making arguments in favour of expenditures in one area as opposed to another. The Minister has already indicated that what we are trying to do by way of a range of tax heads is encourage investment. The argument is that the proof of the pudding is in the eating in that if as a result of a tax break, we generate more economic activity, it must be in the interests of the State. This is a competitive area. States across the world introduce these types of measures as a means of trying to encourage economic activity in a particular area. That is notwithstanding the substantial businesses that have grown in this country in recent years.

I do not propose to rehash all of the arguments made on the previous section. There is a justification for these accelerated capital allowances. We believe this to be in the long-term interests of the recovery of the country.