Brian Cowen (Laois-Offaly, Fianna Fail)

-----one will realise we have a real economy that is forging ahead if we give it the chance. Exports have increased by 6% and merchandising exports have increased by 12% in the past three months. We will have a balance of payments surplus next year. While we must do our job in this House, namely, fixing the public finances, we must also ensure that enterprising, entrepreneurial businessmen and businesswomen, both at home and abroad, are supported in every way, including economically, diplomatically and by way of marketing. All the State agencies must be motivated to support Ireland in selling its goods and services globally such that there will be demand for them when we set the right price. This is what we have been able to do as a result of the policies we have been implementing. That changeover has happened.

Science Foundation Ireland will be maintaining 29 top-class research centres in 2011 and it continues to work with over 400 industry partners. This is important if we are to sustain growth. It is in this area that we must invest now if we are to secure the new jobs and services of the future.

Enterprise Ireland will help approximately 1,200 companies with research and innovation activities in 2011. It will also support 85 high-potential start-up companies next year, rising to 100 by 2015. I refer to scale-up companies in addition to start-up companies, as mentioned by Deputy Gilmore a few days ago. The number of industry-led competency centres will be doubled to 16 by 2015. Innovation Fund Ireland will grow to €500 million, attracting leading international venture capital companies to Ireland; and the IDA will continue to attract new investments, nearly half of which were research and development related this year.

Ireland is developing a strong international reputation for innovation and high tech start-ups. The smart economy can be an important part of our economic recovery, and the budget positions us to take advantage.

We are introducing incentives to bring confidence to the housing market, including a reduced flat rate 1% stamp duty rate on residential property transactions up to €l million; an improved tenant purchase scheme available now to 45,000 more tenants in this country who can obtain the ownership of their home based on a much improved and far more attractive scheme brought forward by the Minister for housing, Deputy Michael Finneran; measures to help registered tax compliant contractors; and tax incentives for retrofitting home energy efficiency measures are a way of ensuring that we reduce the black economy and make sure those who are compliant and are running their businesses properly, ethically and in a business like fashion are supported. By reducing the relevant contracts tax from 35% to 20% we greatly improve the cash flow of those businesses that are compliant and ensure we are able to deal with those who are trying to play it both ways using the system.

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