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

Countries all around the world compete for foreign direct investment, and in recent years schemes such as this have become the norm, especially in Western Europe. Countries with a high marginal rate of income tax, such as Ireland, face a competitive disadvantage in attracting key personnel. Holland has a scheme which is even more generous than anything I am putting on the table, and the Dutch are direct competitors with us for foreign direct investment.

The scheme intends to provide for start-up businesses in bringing to Ireland key people without whom the business would not take off or development of the industry would not take place. That is being done based on the advice I got. The scheme has applied to few people. In the year of introduction only 12 people took it up, and in the last year for which we have figures the initial estimate is that up to 31 people took it up. As the whole debate on international tax avoidance develops, the OECD's policy position is that the test of validity is that real economic endeavour takes place - in other words, no brass plates. If we can get key individuals in - some of the key people in multinational companies - we can prove easily that real activity is taking place in our jurisdiction.

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