FORBAIRT and other agencies will be flexible in their interpretation of business expansion scheme guidelines, the Minister for Enterprise and Employment, Mr Bruton, said.

Meanwhile, the Minister for Finance, Mr Quinn, announced changes in the transitional measures for BES and film relief.

Speaking at the launch of the eighth Manufacturing and Business Expansion Fund yesterday, Mr Bruton said the guidelines and new certification processes are designed to ensure that the schemes of dubious quality would not go ahead. All schemes should provide bona fide employment" opportunities, he said.

Business expansion schemes must apply for certification before tax relief can be granted under measures announced in January's Budget. A business plan must now be submitted which shows the funds have the potential to create a reasonable level of additional employment or are necessary to ensure the survival of the company and to maintain employment.

However, Mr John McGilligan, managing director of the Business and Trading House Investment company, would not name the four companies in which his BES fund would invest this year.

"We can't name the companies because, if certification falls through, it could look bad for them, even though that would be very unfair."

Mr McGilligan added he was worried that delays in the certification process could mean delays for funds and individual companies waiting to be approved. "I hope the Minister is putting the necessary resources into Forbairt to enable it to handle the process effectively," he said.

The problem is particularly acute for single projects as they should have certification completed before the April 5th deadline. In contrast, the funds can raise the money and apply for certification after the deadline.

But Mr Bruton said he was determined to ensure there were no "unnecessary delays".

Mr Bruton said he expected this year's BES funds to raise around £50 million.

Mr McGilligan's fund has identified four companies which require an investment of around £500,000 each. The first is a visitor attraction centre, west of the Shannon. He is also looking at a snack food company in the south midlands and a manufacturing company in Cork. Most exciting, said Mr McGilligan, was a computer company which had only been established for two years. It was based in Shannon.

Mr Quinn said some advanced BES projects would now be assessed under pre Budget rules. The main criteria would be that the investment had been raised prior to April 6th, 1995, and at least two thirds of the money had already been invested on or before January 23rd, 1996.

Mr Quinn also said that the previous rules would apply for any Section 35 investments made in a film company before April 6th, 1995.