Is the BES scheme just a tax dodge as ICTU suggests

I have to admit to being a bit stunned at ICTUs complaint to the EU about the extension of the BES scheme.

Minister Martin's 'utter disbelief' at the complaint seems reasonable.

I don't know much about BES but it seems in theory to be a very good way to encourage entrepeneurial investment which is a positive change from property speculation.

But does ICTU have a point? And if so, could someone point it out to me?

http://www.rte.ie/business/2006/1219/ictu.html

http://www.rte.ie/business/2006/1220/ictu.html

As pointed out on another thread BES scheme investments are generally at the very extreme end of the risk/reward profile. In most cases you will probably lose your money. It's hardly a get rich(er) quick scheme for the rich as suggested by some of the ICTU's statements on the matter. I suspect that this is some sort of attempt by the ICTU to grab headlines (partially successful as evidenced above) but which really reflects pretty badly on them longer term in my opinion. To think that unelected hand picked organisations like this (and ISME and CORI etc.) are social partners determining (to some extent) how economic and social policies are framed in our country. A quasi syndicalist state in the 21st century perhaps?

BES seems to be one of the few areas where massive government tax breaks are fully justified. There is a real risk of capital loss in an area that badly needs capital injection - if the tax breaks can make the risk/return ratio more palatable to potential investors then they are well worth having. The same cannot be said for section 23s, hotel building and the host of other construction-related tax breaks introduced during the greatest building boom in the history of the state.

I agree with CM, the ICTU probably wanted to grab a few headlines and looked for something that would impact their members as little as possible.

If ICTU (and CORI) had their way they'd run the country into the ground, and then protect those who have union jobs and let the country run on in recession for years. Risk should always be rewarded, and God knows Ireland needs to invest in small indigenous businesses. They are very much our future, and those with the guts and work ethic to set them up deserve support, and that risky support has to come from somewhere. Shame on ICTU for standing for protected interests over those of small Irish enterprise.

room305 said:

BES seems to be one of the few areas where massive government tax breaks are fully justified.

Click to expand...

Here here! People (unions?) need to realise that construction can't keep up such high employment levels forever, MNC's owe us nothing and whatever advantages we used to offer are rpaidly diminishing, that the service sector is merely a sign of the times and is totally and utterly reliant on the other area's of the economy remaining successful.

The only way to guarantee economic prosperity into the future is to invent and create new things and sell them to the wider world. Who's gonna finance this - the unions through their pension schemes? The government through direct investment and grants? Joe Soap who just wants his rainy-day savings to be worth as much this year as it was last year? Not a hope!

The only way to invest in this high-risk, potential-high-reward area is to entice the rich who can afford to lose their money. That's not you Mr. Begg, so pipe down!