Oireachtas Joint and Select Committees

Wednesday, 11 September 2019

Committee on Budgetary Oversight

Scrutiny of Tax Expenditures (Resumed)

Photo of Declan BreathnachDeclan Breathnach (Louth, Fianna Fail) | Oireachtas source

I thank the witnesses for their presentation. Most people will recognise that incentives work and multinationals and universities contribute greatly to the development of our economy and employment. I am sure those multinationals and universities are quite capable of sourcing the various incentives that are available and have the power to draw them down.

I will focus on SMEs. A recommendation that additional guidance be given to SMEs was made. Invariably, the backbone of the rural economy centres around SMEs. If someone is working alone in a firm, taking on one extra worker will represent a 100% increase in employment.

It is important that we compliment bodies such as local enterprise offices and Enterprise Ireland which distribute these incentives.

As a Deputy from a rural area and, indeed, a former school teacher, the biggest issue I have come across is the smaller guy who has an idea and wants to go to his local enterprise board and who is concerned that his idea will be stolen and suggested to a larger enterprise. No doubt there is that concern. To what degree is information being made available to the small guy to give him the opportunity to apply for these incentives, but, more importantly, so that such guys would be able to get the same type of tax relief? We should ensure that a guy, who has not necessarily the time to take off work and who needs to take somebody on to develop his idea, gets tax relief no matter how small his enterprise is. Can Ms Gunnell develop that in terms of a proposal because in my experience such persons find it difficult? While the enterprise boards and Enterprise Ireland try to help, there is a reluctance to go there because they cannot get the incentives the larger guy can get. Would Ms Gunnell care to comment on how that can be improved?

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