Denis Naughten (Roscommon-South Leitrim, Independent) | Oireachtas source

Financial Resolution No. 4 deals with the employment and investment incentive scheme. In budget 2013, the Minister for Finance announced plans to extend this scheme until 2020. In April, the Minister for Jobs, Enterprise and Innovation stated that he expected to have European Commission approval for the scheme by the end of June. Bizarrely, the Department of Finance only submitted the application in June, however. Will the Minister explain why this was the case? When will there be a decision on this scheme, as it is pointless talking about amending a scheme when we have not even got Commission approval?

This was one of the ten points announced by the Minister for Finance last December to support small and medium-sized enterprises, SMEs. It is a worthy proposal. I do not have any problem in principle with the changes proposed in Financial Resolution No.4. What is frustrating about the fact that it has not got Commission approval yet is that it is estimated by the Department of Finance that this scheme could create 1,200 new jobs a year. Recently, I spoke to one employer who told me he could increase his workforce from 60 to 70 if he had access to the scheme. There are many other employers in such a position. This is a mechanism that will get cash into businesses because the reality with the banks is that one almost needs to prove one does not need the loan before they will give it. This scheme will allow an investor to put cash into a business.

Earlier today, the Minister for Finance announced a 25-point plan giving additional tax incentives for investing in businesses. However, this scheme, announced in the last budget, is still not operational. When will it be put into operation? Why is there a delay? Why has the Minister for Jobs, Enterprise and Innovation been left out of the loop in terms of what is happening with this scheme?

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