Richard Bruton (Dublin North Central, Fine Gael)

I move amendment No. 22:

In page 77, between lines 33 and 34, to insert the following:

"(e) by inserting the following after subsection (12):

"(13) The provisions of this section shall apply to a sole trader in the same manner as they apply to a company.".".

This proposal was discussed in committee in the context of the concession introduced by the Minister last year whereby companies that are establishing would get a refund of tax as an incentive to support their start-up. At a time when enterprise is scarce and many people have lost their jobs and are considering establishing businesses, we propose that a similar concession be granted to sole traders. Some 70% of employments with fewer than 50 employees are sole traders and there are significant numbers of people in this category. While Ireland has a comparatively good record in the establishment of new businesses, the recent trends have been downwards and the new enterprise establishment is slipping.

The Minister was unwilling to accept this proposal in committee because of the open ended potential cost and the fact that the concession for sole traders could be at 41% whereas in the case of companies it is confined to 12.5%. However, it seems to me that he could design a concession ring-fenced to sole traders starting up which would be a significant boost to those who are now being forced by necessity to go down that route, which for many people is daunting and expensive. Some concession towards that would be desirable.

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