Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

I welcome the amendment. I raised this issue on Committee Stage. In the previous Finance Bill the issue was dealt with for non-resident non-executive directors who were given an exemption from taxation in respect of the reimbursement of expenses but a different regime continued to apply to Irish resident non-executive directors. It is important to be clear that we are talking about the reimbursement of expenses incurred in attending board meetings. We are not talking about people making a profit. I could not understand the logic in somebody being taxed on expenses incurred in travelling to board meetings.

The Minister has provided for a number of appropriate conditions, namely, a €5,000 limit and a stipulation that the amouints be in line with Civil Service rates. My intention in putting forward the amendment on Committee Stage was not to facilitate high rollers earning €70,000 or €80,000 in non-executive fees as members of the board of an Irish PLC, as some suggested. The Minister has made an appropriate change which I support and which sends a positive message to those who are prepared to lend their expertise to small and medium-sized enterprises, in particular. That is in keeping with the spirit of what I proposed on Committee Stage.

I also make the point that there are many types of organisation that are incorporated as a company, as a body corporate. We are talking not only about for-profit businesses; this measure will also be of benefit to a wide range of organisations that are incorporated and rely, in many instances, on pro bono expertise provided by people who bring considerable experience to board membership. This is a positive change, one that I can support.

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