Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

That is helpful.

The key finding from UCD and what we hear from SMEs all the time is that this was designed for FDI, that is, it was to design an R&D tax credit for SMEs in terms of the application process and the reporting process. We all recognise the importance of FDI and the R&D tax credit, which need to be maintained, but we have two different and completely unequal systems for SMEs which really want to get involved in research and development and help with wage growth in that sector, and so on.

It is done in other areas. I hear all of the time from people who are working with companies. They say they are working with SMEs and with FDI in the South and they are working with SMEs and with FDI in the North, but it is like night and day. There is a simple application process in the North, although I do not know the detail of it. Bringing awareness of the existing rules would be very helpful in making it easier for them to comply but it cannot happen if the rules are designed initially with FDI and big pharma in mind. I would like to hear if there is thinking within the Department or within Revenue so that, as we are looking at the rates for SMEs, we would look at a simplified approval procedure for the R&D tax credit for SMEs as well.