Simon Harris (Wicklow, Fine Gael) | Oireachtas source

I can. The Deputy's amendments were ruled out of order but I will respond to the broader points that he has raised. The Deputy wanted consideration to be given to the effect of increasing the minimum holding period for shares from four to five years. The EII scheme is targeted at job creation and retention and is available to the majority of small and medium-sized trading companies. The scheme was subjected to a significant review this year by the Department of Finance, in consultation with the Revenue Commissions. As the Deputy will know, the review included a public consultation process. Following on from the review the Minister for Finance has brought forward a number of changes to the scheme, including the increase of the holding period for shares from three years to four years.

The holding period for shares must be set at a level that, on one hand, allows the company to use the funds raised and increase revenue sufficiently while, on the other hand, not be so long as to deter investors altogether. A company's stage of development is a key factor in respect of the shareholding period. The increase in the holding period from three years to four years will allow a company more time to use the funds raised and, hopefully, be in a position, as the minimum four-year holding period ends, to repay the investors.

It should be noted that the legislation only imposes a minimum four-year holding period and no maximum holding period applies. Investors have stated that the five-year holding period was too long for them to wait for a return on their investments. In the current economic climate where more companies are competing for less available funds, increasing the holding period to five years, in the view of the Minister for Finance, could serve to discourage investors further. There is a balance to be struck in terms of incentivising the investor and enabling the company to utilise the investment. The Minister is not inclined, therefore, to increase it to a minimum of five years.

The Deputy asked how many investors availed of the EII scheme. In 2012, the scheme cost €4 million and had 352 investors. In 2013, the scheme cost €12.4 million which included 1,011 investors, including six funds. It is encouraging to see such a substantial increase.