Dail Report: Taoiseach Bertie Ahern denied that all the Government-promoted tax relief schemes were a waste of money.
He was replying to Opposition questions on the revelation that a relatively small group of high-income individuals have benefited in recent years from about €3 billion under the schemes.
Mr Ahern said many of the schemes were initiated in different times when the Republic was on its knees.
"Many of the schemes were an attempt to prime-pump a lifeless economy. Some of them were good value for money and some created many jobs.
"However, some of the schemes have outlived their usefulness," Mr Ahern said.
The Taoiseach conceded that "other schemes were too generous and were picked up and used by smart people and people who could go quite close up the line of tax evasion". But this could happen with such schemes, he added.
Mr Ahern said that in the cold light of day people would realise that many of the schemes were introduced when it was not possible to generate any activity in cities and, even with the generous schemes on offer, it was difficult to find people to develop and invest.
Last year a total of 95,000 jobs were created in the economy, and it could be argued that the schemes were not necessary.
"However, this review has been a historical examination in order to form a basis for future action.
"The Minister [ for Finance] has already taken action on a number of the schemes. The Minister has stated that an economic analysis of the schemes will be undertaken."
Fine Gael leader Enda Kenny claimed that the Government's failure to properly evaluate incentives, and have a full cost-benefit analysis before any extension, had in the past five years cost the taxpayer €1.5 billion.
"Four years ago the then minister for finance, Mr McCreevy, announced the ending of these schemes.
"He knew then - as did the Government - that their time was up. Yet in 2002 the relief for multistorey car parks, which was to end in 2000, was extended three times, from 2002 to 2004 and then to 2006, with no examination carried out of any worthwhile progress made.
"In December 2003, with one wave of the Government pen, the life of a range of schemes was extended from 2004 to 2006, with no examination carried out."
Labour leader Pat Rabbitte claimed there was an impression being sold about the tax system, "the sort of Vincent Browne-like, naive 1960s analysis", that because people were not paying a 75 per cent rate of personal tax, this was a very fair tax system.
But what was fair about the tax system whereby high rollers got the kind of benefits exposed in the reports? The existing schemes would obviously continue to run, he said.
That was a contract, he added. "The property-based schemes will not finish until after the general election, when we will have a whole new situation.
"The fear of overheating the construction sector is a fear of overheating it between now and the general election," Mr Rabbitte said.
Mr Ahern said that a historic and current look had been taken at the schemes in every area. Changes had already been made to some of them.
Some were totally gone or being phased out.
Some would remain for continuous appraisal by the Department of Finance, to see their merits over time. Some would live on because they were beneficial.
The cap on various tax reliefs relating to high earners had already been announced, Mr Ahern said.
