Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

The new employment and investment incentive and revised seed capital scheme came into operation from 25 November 2011. I do not have a full year's statistics available on the impact of the incentive. Last year, I reviewed the film relief scheme and on foot of that made substantial changes to the operation of film relief in the Bill. My Department has commenced a review of the research and development tax credit this year. The review will consider the design and structure of the credit and the contribution of research and development to productivity and growth. The employment and investment incentive and seed capital scheme will be reviewed in due course. It is too early for it to be subject to a review now. I draw the attention of Deputies to the economic impact assessment which was completed by my officials before the new incentive was introduced. The review is available on the Department of Finance website.

When introduced, the incentives retained the original expiry date for the business expansion scheme of 31 December 2013. The extension of the incentive is subject to State-aid approval by the European Commission. In that regard, it is important that the application for the extension of the incentive be made without delay. My Department will commence the application process shortly. A review would, of necessity, delay such an application. I do not consider it appropriate to include a commitment to examine and review any incentive in the legislative base as reviews are normally completed as part of the annual budget and Finance Bill process. For these reasons, I cannot accept the Deputy's proposed amendment.

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