Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

Well, we have never had these figures before and, in fairness, Deputy Boyd Barrett has just been given figures for companies with more than 250 employees. Where the companies that are out of scope are concerned, if a 5% increase equates to €13 million, it means they are getting €65 million currently and all of the other tax credit, amounting to nearly €700 million, is going to companies with a turnover in excess of €750 million per annum. That is a serious concentration of this credit. I am not arguing against the proposal, but it speaks to the need to drive forward policies that support SMEs, micro-enterprises and start-ups through the research and development tax credit. It is not happening to the scale we need. What is happening mirrors foreign direct investment, which is very profitable and beneficial to us in terms of employment, tax revenue and so on. In my mind, this significant concentration reveals the fact that there are few SMEs engaging in research and development, which is a serious concern. I agree with Deputy English’s point that the aim has to be to encourage research and development. That is the driver of innovation, but it has to happen at SME level as well.