Michael Ring (Mayo, Fine Gael)
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Question 236: To ask the Tánaiste and Minister for Finance if he will extend the business expansion scheme to include tourism and guest accommodation enterprise development on islands; and if he will make a statement on the matter. [1924/08]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The Business Expansion Scheme, which was subject to a thorough review in 2006 and renewed and extended in Budget 2007, is not available for the development of hotel or guest-house accommodation. Most asset-backed projects have, in fact, been removed from the scope of the BES for a number of years at this stage and I regard it as important to ensure that the BES remains focused away from such asset-backed projects and towards the incentivisation of risk capital investment in appropriate businesses.

As the Deputy will be aware, the BES is an approved State Aid. Any changes to the scheme on the lines suggested by the Deputy would require the prior approval of the European Commission having regard to the relevant EU guidelines on risk capital.

However, it should be noted that the Business Expansion Scheme is already available to companies operating in a number of tourism categories, such as hostels, camp sites, holiday centres, tour bus operators, boat hire and sports facilities, so there is plenty of scope for tourism entrepreneurs to avail of its advantages.