James Lawless (Kildare North, Fianna Fail) | Oireachtas source

The Tánaiste referred to Innovation 2020. I am very concerned about progress on this strategy, although I acknowledge that it is a national strategy and my question is directed at a lower level. We learned during the week that Ireland spends approximately 1.45% of GDP on research and development whereas the figure is supposed to be 2.5%. I am very concerned about this. I reviewed Innovation 2020 last night and we are very far from meeting the objectives set out in the strategy.

The Tánaiste also referred to Science Foundation Ireland's research centres and the funding provided in the budget for a new research centre. While these centres do great work, they are not applicable to small business, which is the focus of my question.

I met representatives of the Small Firms Association and ISME recently. As a former chairman of a small business association, I know that small firms find it difficult to access supports, particularly high-level supports such as Science Foundation Ireland's research centres and fiscal measures such as the research and development tax credit and knowledge box tax credit, to which I had amendments made earlier in the year. We must try to assist small businesses to avail of these schemes. Small business groups inform me that while such initiatives are fantastic and make sense, large companies with significant reserves can take the risk of receiving a tax credit or having a tax audit done in later in the year, which may involve a clawback. However, a small firm struggling daily with cashflow will find it much more difficult to do this because it cannot risk this type of capital expenditure upfront in uncertain circumstances.

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