The Department of Finance has published the early findings of a survey of companies which used the Business Expansion Scheme (BES) in the past.
The Government is seeking approval from the European Commission for an expansion of the scheme announced in the Budget, and Minister Brian Cowen said the results would be used to back up its case.
The Irish Congress of Trade Unions had submitted a complaint to the EU about the changes, calling them an extension of current tax avoidance measures. Today, it said it was standing by its criticism.
The Department of Finance sent questionnaires to almost 1,400 companies. It said that of the 491 who responded, 58% classed themselves as manufacturing, 22% as international services and 12% as tourism.
More than 60% of the companies employed fewer than 15 people, while exports accounted for 56% of the output of the firms surveyed. 75% of the companies raised less than €500,000. 33% of the firms were start-ups or in the development phase, according to the department.
Minister Cowen said the survey indicated that BES had been good for manufacturing, good for jobs and good for investment, and that it was not a risk-free investment.
But the Irish Congress of Trade Unions says the number of manufacturing companies using the scheme is falling. In a statement, ICTU also criticised the lack of detail - including names of companies and amounts of subsidies given - in the survey, adding that there were no details on investors in the scheme. It said the survey should have been done before the decision to expand the schemes.
Meanwhile, the Irish Taxation Institute said the figures released today were 'compelling evidence' that the BES scheme was central in helping firms to grow and create jobs. Chief executive Mark Redmond pointed to the finding showing that 47% of firms cited BES funds as a key factor in launching new products or services.
