Ms Martina Fitzgerald:

I will make separate comments on the various schemes. Fair dues to the Deputy for being an entrepreneur in this and supporting entrepreneurship. Entrepreneurship is difficult and many entrepreneurs take risks. Everything from their mortgage applications to their creditworthiness is affected if things go wrong. We understand that.

Let me refer to some of the key issues we are considering. First and foremost, we believe this committee could play a role. Numerous reports state there is a problem with the various schemes. The complexity, difficulty and need for external advisers are factors. We have had consultations with representatives of the Government, which we welcomed, but even the external advisers were saying those concerned should not be coming to them. They are coming for a second round of advice and, therefore, perhaps there is a role for this committee. We support the Commission on Taxation and Welfare and also the White Paper's recommendation that the Revenue Commissioners engage positively and examine how to make all the supports intended to help startups and scaling companies work for them, or even put the companies in a position to apply for them. The employment investment incentive scheme is really important at the moment because it incentivises private investment in startups and scaling companies. The guidance document is 107 pages long. If a startup applying to participate in the scheme makes a mistake, the clawback is on it, not the investor. Some of our founders believe it is a choice between growing your market and considering availing of some of the schemes. They do not have time for both.

Just 50-odd companies have availed of the key employee engagement programme, KEEP, a share option scheme, although it is set up to help SMEs to recruit and retain staff. The commission is very strong in saying the scheme is not meeting its full potential and that more work needs to be done on it. It is very supportive of its objectives. We welcome the changes made in the latest budget and the previous ones regarding many such schemes but the problem is their complexity for very small startups and scaling companies.

The third initiative I wish to refer to is the research and development tax credit. The Commission on Taxation and Welfare did a very good job in outlining all the issues with it. At a time our spending is not on par with that of the EU and when the ambition is to become an innovation leader, according to the White Paper, there are concerns about the complexity of the credit. The commission even refers to checklists, guidance, further guidance and examples that the Revenue Commissioners could provide to startups. Maybe there should be a two tier-system or a separate system for small and medium-sized businesses within that. No matter what schemes are being dealt with, it is recognised in the White Paper and by the Commission on Taxation and Welfare that those schemes, however worthy, are not fulfilling their potential or meeting their objectives. Time and again, companies we survey find them very complex. We really hope the committee will have a role in engaging with the Revenue Commissioners and that our sector will liaise with the Revenue Commissioners to consider how to address the matter while still providing robust rules to protect the Exchequer. That would be one of the main issues for us.