Brian Hayes (Dublin South West, Fine Gael) | Oireachtas source

It will encourage small and medium businesses to get on the listing as a means of obtaining further capital from the markets at some point.

I wish to read a note into the record. The section provides for an exemption from the 1% duty for transfers of shares in companies listed on the ESM of the Irish Stock Exchange. The exemption, which the Minister announced in his budget speech, is one of the measures he has introduced to support entrepreneurs to create new businesses and additional jobs. The reduced cost associated with the trading of shares on the ESM should encourage more investors to back SMEs and provide fledgling companies with an alternative funding stream.

The ESM is the Irish Stock Exchange's enterprise market for growth companies. It has been specifically designed to meet the funding needs of companies at the early stages of their development. The ESM rules provide for a low cost streamlined admission process and facilitate dual listing in similar markets in other jurisdictions such as the alternative investment market of the London Stock Exchange. The Irish Stock Exchange is also in a position to offer a similar dual ESM-US listing that will give Irish growth companies access to US dollar pools of capital, as well as European pools of capital. The rationale is to try to get the companies listed as a means of improving their potential for growth and capital.