Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

First, foreign direct investment, as all colleagues will know, is very competitive. There are schemes similar to SARP in other jurisdictions that compete with us for foreign direct investment. The Netherlands is a case in point. It has a scheme along the lines of SARP but it is far more generous in its provisions.

I introduced SARP, in its present format, in 2012. I did so as a result of very strong lobbying by IDA Ireland that said there was a gap in the Irish offering to attract foreign direct investment and we needed to close the gap to retain our competitive position in attracting foreign direct investment. We reviewed the scheme in 2014. Deputy Doherty has given the key figures. The most recent report on the special assignee relief programme, which is SARP, in respect of the 2014 tax year shows that 302 employees availed of SARP. It also showed that 126 jobs were created and 708 jobs were retained as a result of the incentive. The cost to the Exchequer was €5.9 million, as Deputy Doherty has put on the record.

Second 9 provides for the announcement on budget day to extend the programme. As Deputies will be aware, I have decided to extend the incentive until the end of 2020. I announced the extension early in order to provide certainty for potential investors in Ireland following the UK's vote to leave the European Union.

The current SARP scheme, as enacted, does not finish until the end of next year so it is not ending now and we are not extending it now. It finishes at the end of 2017 and we are giving advance notice that we will extend it further.

One can do different sums on the cost of the jobs but if one takes the very high-earning people - every single employee earning a salary of €500,000 who avails of the relief under SARP - almost €139,000 will still be paid to the Exchequer in income tax and a further €37,000 in USC so it is not a complete relief. These high-earning people continue to pay significant amounts of tax and USC but, of course, they are less significant than what an Irish employee on an equivalent salary would pay. If PRSI is payable, it would yield a further €73,750 in employer and employee contributions. If one is looking at the cost per job, one needs to net it all out.

I do not see this as a major scheme but under the very strong advocacy of the IDA, I introduced it in 2012. With the threat from Brexit, I think it is important that we maintain our competitiveness in this respect. A total of €6 million and about 900 jobs in all are being claimed. One can argue about net cost and whether one goes gross or net if off but I think it is worth holding it for another couple of years. I am not extending it indefinitely. It can be reviewed in 2020.