Dáil debates

Wednesday, 6 December 2006

4:00 pm

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)

In the case of the seed capital scheme, the annual investor limit is being increased to €100,000. I am increasing these limits in order to bring vital risk capital to the small business sector. As these schemes are approved State aids, their continuation and the changes proposed will require the approval of the European Commission. The full year cost of these measures is estimated at just over €25 million.

With a view to fostering new companies and entrepreneurs, during the course of this year, I approved a proposal for a new round of seed and venture capital funding announced by my colleague, the Minister for Enterprise, Trade and Employment, Deputy Martin. This will involve a €175 million State investment through Enterprise Ireland over a period of ten years.

It is often pointed out that much of the dynamism of an economy comes from small firms and there is a real need for small companies to make use of innovation and modern technology to maintain competitiveness. To help bring that about, the Minister for Enterprise, Trade and Employment has announced a provision of €5 million in 2007 for innovation vouchers, knowledge acquisition grants and ICT audits, all of which were recommended by the Small Business Forum.

Helping small businesses

Small businesses are a major source of employment and growth in this country. Small businesses are big business. There are approximately 250,000 small businesses in Ireland today, employing almost 800,000 people, or 40% of the workforce. Recognising their important contribution and their development potential, I am pleased to announce the following package of measures aimed at reducing the administrative burden on this important sector. Small companies whose corporation tax liability is currently less than €50,000 can pay preliminary tax based on their previous year's final tax liability. This removes the need for small businesses to forecast their projected full-year performance prior to the end of their accounting year. To alleviate further the burden on small business, I am increasing the small company liability threshold from €50,000 to €150,000.

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