Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

That is a disappointing response. I think the Minister is ignoring some of the points made in the report. The report states that it is pertinent to ensure that this does not increase. After the publication of the report we find out that it has already increased by another €150 million. The Minister is also ignoring the recommendations in the report about multiple claims and the fact that it does not affect younger firms.

My amendment is very simple. By the time we return next year to consider the finance Bill the research and development tax credit could be worth €1,000 million. In my amendment I request the Minister to report on action to be taken to reform the tax credit. It needs to be reformed as fewer companies are availing of it and younger companies are not availing of it. It completely out of control. The rate of increase is €150 million a year. We argued the toss of €10 million here and €10 million there, but this is similar to the Minister spending this amount of money.

It is disappointing that the Minister will not accept the amendment. I see the value in research and development tax credits. It is important for companies to have that tax credit. It is also important for the certainty of research and development but we have to do something about it. The Minister has given no commitment to a review of the tax credit. The report that he published on budget day last year called for further analysis on it. There was no cross-benefit analysis and it referred to simpler ways for analysing it. I will come back with an amendment on Report Stage but I encourage the Minister to look again at that report and come back with a substantial amendment.