Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I agree with the point made by the Deputy about productivity levels in the SME sector. Earlier in the year my Department published a paper, in conjunction with the OECD, in which we analysed productivity levels in the economy once we had stripped out the very large companies integrated into global supply chains. The analysis showed that we had productivity levels that were lower than they should be for smaller companies. The initiative announced by the Minister for Business, Enterprise and Innovation on the future work programme which will gradually replace the Action Plan for Jobs looks at the quality of work and productivity levels within all areas of the economy. It is fair to acknowledge productivity levels as an issue. In addition, when we talk about multinationals broadly and the changes that have happened within the country, one issue on which I think we do not place enough emphasis is the number of Irish companies that, with great success, diversified into overseas markets and managed to scale up very quickly when the domestic economy was going through a great difficulty. I point to companies as Glanbia and Cement Roadstone Holdings as excellent examples.

On the specific amendment the Deputy has put to me, I will cut to the chase. Like my Department, I am conscious of the need to evaluate regularly the research and development tax credit. In line with my Department's tax expenditure guidelines, a full ex postcost benefit analysis and evaluation of the credit will take place next year. While I cannot accept the amendment, we will substantively review the operation of the credit next year. It will be fully in place in advance of the budget next year.