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Cowen defends business schemes

Brian Cowen - Defending business schemes
Brian Cowen - Defending business schemes

The Minister for Finance has mounted a robust defence of the business expansion schemes which he extended in the Budget.

Brian Cowen has published a survey showing the scheme is good for manufacturing and creates jobs.

The Irish Congress of Trade Unions has made a complaint to Europe about the incentive, saying it benefits high earners.

The business expansion scheme is used by firms to get funding for growth. People who invest do not have to pay tax on the money they put into the scheme.

But ICTU says it is simply a way for rich people to get richer and that much of the investment went into property.

Today Minister Cowen published a survey showing 60% of the money goes to manufacturing. The Irish Taxation Institute said that that provided compelling evidence that the scheme sustains economic activity.

But ICTU is standing by its criticism, saying the number of manufacturing companies using the scheme is falling.