Ms Olivia Buckley:

The Irish Tax Institute did some research earlier this year and looked at a new tax strategy for indigenous business because there is a recognition that we need to grow and scale our business, particularly in light of other global threats. This will involve a number of pillars. We need innovate companies and we need to expand into new markets. We also need to have talent and the best people to allow us to do this.

Companies also need to have funding. It was interesting to note the comment by the chairman of the European Union's open innovation and strategy policy group in an interview on "Morning Ireland" this morning that one of the big issues to be addressed across Europe was the scaling of companies. This requires funding. One of the important sources of equity, apart from bank funding, that companies need is angel investors. The relief for entrepreneurs is capped at €1 million and is only available to owner managers. We have many enthusiastic, highly capable and successful entrepreneurs. It is part of their DNA and their natural inclination when they make a success of their business to reinvest in other start-ups and bring enthusiasm and experience to these companies. However, the entrepreneur's relief, which gives people a lower rate of capital gains tax of 10%, locks out angel investors on the basis that they may not be involved full-time in the company.

We did another interesting piece of research which looked at EY entrepreneurs across the world. It found that a large number of them reinvest in other companies and that other countries, notably the United Kingdom, have a much better system in place. Perhaps Ms O'Brien will elaborate on that issue because we have a competitiveness issue in terms of Ireland's regime versus the UK regime.