Michael Noonan (Limerick City, Fine Gael)

While the package of attractions for inward investment has been very successful, I believe with some adjustments more jobs can be created. As part of that strategy, I will introduce a special assignee relief programme. This will allow multinational and indigenous companies to attract key people to Ireland so as to create more jobs and to facilitate the development and expansion of businesses in Ireland.

After consultation with the Tánaiste, Deputy Eamon Gilmore, I am also introducing a foreign earnings deduction to further support our export drive by aiding companies seeking to expand into emerging markets. This targeted deduction will apply where an individual spends 60 days a year developing markets for Ireland in Brazil, Russia, India, China or South Africa, the so called, BRICS countries. I will be giving details of these and additional measures in the Finance Bill.

The international financial services industry in Ireland has been one of the great export success stories of the last 20 years. The sector employs more than 30,000 people and contributes over €1 billion in tax to the Exchequer. However, financial services are highly mobile and we must compete within a global market to ensure that the sector in Ireland continues to grow. Our commitment to the sector has been re-affirmed in the five year strategy for the industry which was launched by the Taoiseach in July this year. I intend to introduce a package of measures in the Finance Bill to support the continued success of the international funds industry, the corporate treasury sector, the international insurance industry and the aircraft leasing industry.

Indigenous Industry

Export growth from the multinational sector is not sufficient to drive the full economic recovery we are seeking. The domestic sector will be the real engine for job creation across the country. Already, indigenous companies in certain sectors are expanding and growing their operations. The Government will support and enhance their efforts through targeted measures for the SME sector.

In addition to the loan guarantee fund and micro-finance fund announced by the Minister for Jobs, Enterprise and Innovation, Deputy Richard Bruton, I am announcing that the first €100,000 of research and development expenditure of all companies will be allowed on a volume basis for the purpose of the research and development tax credit; the outsourcing arrangements for research and development purposes will be improved in a targeted manner to allow the greater of the existing percentage arrangement or €100,000; companies will have the option to use some portion of the research and development credit to reward key employees who have been involved in the development of research and development; the corporate tax exemption for new start-up companies is being extended for the next three years and will be available for companies that commence trading in 2012, 2013 and 2014; and as already announced, smaller companies will also be able to avail of the planned foreign earnings deduction where they plan to expand their export markets into the BRICS countries. I believe that these targeted measures will provide a stimulus for SMEs as they seek to develop, grow and expand their markets.

Deputies will also be aware that the employment and investment incentive is in operation since 25 November last. This incentive assists in raising risk capital for firms operating in more sectors of the economy than was previously allowed under the business expansion scheme. Other job creation measures will also be examined with a view to their inclusion in the Finance Bill.

Agrifood Industry

Active, energetic and profitable farming is fundamental to the agrifood sector. Irish food is now a world brand leader, and when milk quotas end in 2015 and as food prices are maintained or increased, we want Irish farmers to produce more to supply the emerging markets, where there is significant and growing demand for Irish food.

The food industry must be supported by efficient and progressive primary producers. I wish to encourage the transfer of farms to the next generation of farmers. Many young people from farming families were attracted off the land by the rewards of the building industry, but they are now returning to the family farm. The agricultural colleges are full and many young men and women now see their future in farming.

Later in my speech I will be announcing significant reductions in the rate of stamp duty on the transfer of commercial property. The new rate will also apply to farmland and the present relief for transfers to close relatives will continue to apply.

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