Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

On the substantive section, this is quite a major change and one we have campaigned for as regards the research and development tax credit being increased to 30%. As to how this should apply, we have argued that it should apply to SMEs. This will apply right across the board for all companies. Like our earlier discussion about pensions, there has been genuine consideration of concentration of research and development tax credits in certain sectors in the past and how we can ensure that the SME and microenterprise sector is benefiting from and engaging in more research and development. This will affect all equally, but am I right to suggest that the motivation behind this is to offset the impact Pillar 2 would have on some of the companies that are in scope? The Minister might talk us through why the research and development tax credits would need to be increased by just below 30% in order for them to maintain the existing level of support, giving the new effective corporation tax rate that will come in at 15% or the top-up rate that will apply to them. I would like the Minister to discuss that in the first instance. Then I will come back on a number of points that are not connected.