Tom Hayes (Tipperary South, Fine Gael)
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Question 151: To ask the Minister for Finance the policy behind the business expansion scheme; the amount generated on this scheme every year since it was created; and the amount managing this scheme costs annually. [26905/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The Business Expansion Scheme (BES) provides a tax incentive to private investors to invest long-term equity capital in companies (particularly new and smaller ones), operating in certain sectors of the economy. Its purpose is to encourage investment in companies which would otherwise find it difficult to raise such funding and would instead have to rely on loan finance which can be difficult for small and start-up companies to obtain. Provided an investor holds his or her investment for a minimum period of 5 years, the BES provides individual investors with tax relief, at their marginal tax rate, in respect of investments of up to €150,000 per annum in companies engaged in certain activities, especially in sectors such as manufacturing, services, tourism, and Research and Development. The scheme was designed with a view to the creation and maintenance of employment.

I am informed by the Revenue Commissioners that the estimated tax cost of the Business Expansion Scheme and the amount of investment raised since it was created is as set out in the following table.