Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

I support the research and development tax credit. I do not agree with Deputy Boyd Barrett's comment that is an either-or scenario. The reality is that Ireland is way below par in investment in research and development. The fact we provide research and development support to companies should not be a reason not to invest in our universities, because I think the point being made is a very genuine one. We should be doing all of that. In comparison with other European countries we are well behind the curve in our investment in research and development. It is the type of investment across all the different ways that will benefit us in the medium to long term.

I looked at the statistics, and almost 200 claimants are getting less than €10,000. We need to foster these people. Not enough people or companies are involved in research and development at a small level. We have heard from others who are involved in research and development but sometimes the process or the application or the fact it could be called back is too much of a challenge and they are not even applying for it.

I am taken aback by the cost of this. The overall cost to the Exchequer last year of the research and development tax credit was €753 million for 1,600 claimants. If we increase the rate by 5% the cost of this will be an extra €27 million. Will the Minister explain how this is not linear in relation to the increase in the overall cost?