Áine Collins (Cork North West, Fine Gael) | Oireachtas source

The witnesses are very welcome. It is always nice to have IBEC in. We are here in good time. We have discussed the budget a great deal already. The Small Firms Association attended in that regard. The witnesses will be glad to know regarding their first suggestion that the Minister for Finance will report back to us in September to let us know the figures and what he will do with regard to the budget and austerity measures.

I agree that VAT reductions for the tourism and hospitality sectors have worked very well. We would all like to see the measure continued and carried over to other sectors, particularly the building trade. Employment costs are important, particularly from the point of view of small businesses who take on staff. We have all realised finally that it is the small businesses that will be the backbone of the country and create the jobs. I mentioned the research and development tax credit earlier. It must be extended. By 2020, we must be investing three times more in research and innovation than we are investing now. We must start the process. I agree with the idea of a light scheme for small companies, many of which are conducting research but not getting support. This goes back to my earlier comment on business supports, of which we do not have enough. It is time to do more for small businesses and to make supports more accessible. Now is the time to do so with the introduction of LEOs and the realignment of Leader programmes. We need far better supports, improved accessibility and improved qualifications among those providing supports.

Tax investment is interesting. I speak about it a great deal. The employment incentive scheme and the seed capital scheme have not been taken up. A business has to spend the money before it can recover it through the seed capital scheme. I wonder if there is an alternative. A business must invest the money in its capital. Could not a person who sets up a business just claim it back even if he or she did not invest it in the company? There should be an easier way to make that happen. When we changed the old BEF scheme to the employment incentive scheme, it no longer seemed to have the same bite. How can we improve access to it? My view is that anyone who invests in a new business should get tax relief. That is all probably angel investment, which we should have if we are serious about entrepreneurship and growing the economy. Is it something we could look at in terms of the employment incentive scheme? I would be delighted if Mr. O'Brien and Ms Fitzpatrick could send me any information they have in that regard.