Ms Anne Gunnell:

That 7% comes from when the ESRI reviewed research and development. We feel that the biggest challenge for small and medium enterprises is in claiming it. The 25% tax credit is a good incentive. Being able actually to avail of it is an issue. The administration seems to be the primary block. When we surveyed small and medium enterprises which did not claim it, that is what they said. When there is significant expenditure, it should be scrutinised and we all accept that in any self-assessment system, Revenue needs to scrutinise that to protect the tax base. Businesses say that it is quite complicated and cumbersome, and administrative simplications would be welcome to enable them to claim the credit.