Businessmen whose companies have benefited from the passports-for-investment scheme are angered at the Government's decision to scrap it. Thousands of jobs have been saved by the scheme, most of them in traditional indigenous manufacturing firms in small towns around the State. The workers whose jobs have been saved have generally given long service, are in their 40s or 50s, and would be unlikely to find work if their factories closed.

One businessman said that if the scheme was scrapped it would have to be replaced by a new organisation such as the former state rescue bank, Foir Teoranta.

"Politicians have contaminated the scheme with the Masri and Mahfouz controversies," said one source. "Business people believe it is the politicians who have damaged the scheme, not the investors. Now they are talking of knocking it on the head. That's crazy."

Most factories concerned are in locations where the chances of finding replacement industries would be "zilch", according to one non-political source who has worked on administering the scheme. The investors can be encouraged to make "risky" investments.

Another source said the scheme has been "squeaky clean" since the creation of the interdepartmental advisory committee in 1994. "I argued very strongly early on for making it simple and transparent. If we end up scrapping it then that's stupid. Other countries have similar schemes. In my view it is a useful scheme."

A good example of the type of firm which has been saved as a result of the scheme is Lissadell Towels, in Carrickmacross, Co Monaghan. The firm was in examinership when an investor from eastern Europe put in £1 million in equity and £400,000 in working capital.

"We have saved over 100 jobs, and the business is proceeding to grow," said Mr Tom O'Neill, chief executive at Lissadell. "At the time we tried every government agency but none would help until the investor's money was put in."

The security concerns of the wealthy individuals making the investments, and commercial sensitivities, are the reasons given for withholding the names of investors and companies which make use of the scheme. Naming companies might scare creditors of those companies. "But they could have named the companies a year later, and named the people without giving their address," said a non-political source.

"The politicians kept it secret because the idea of having passports for sale is embarrassing. They didn't distance themselves from the scheme because it allowed them quietly to let it be known they had helped secure the investments."

In Canada citizenship can be secured for much smaller investments than those required in Ireland. "The scheme is a way of protecting jobs in the traditional industries," said one businessman. "Are we going to put these jobs on the scrap heap? That's the question the politicians need to face up to."