Louise O'Reilly (Dublin Fingal, Sinn Fein) | Oireachtas source

I thank the Leas-Cheann Comhairle for the opportunity to speak on the Finance (No. 2) Bill. Workers and families continue to struggle under a cost-of-living crisis, and businesses face into the continuation of what is effectively a cost-of-doing-business crisis. With the exception of a limited number of areas, the tax packages announced in budget 2024 will not deliver in a manner which matches the scale of the crisis for workers, families and businesses.

Section 33 makes a number of changes to the research and development tax credit, for which Sinn Féin has long argued. I have spent many hours in the Committee on Enterprise, Trade and Employment calling for this as well as other changes in order to increase and improve research, development and innovation. Analysis of European and global indicators shows that Ireland is drifting in the wrong direction on innovation scorecards and on international competitiveness in the area of research and development. We have moved in the right direction on the European innovation scorecard and we are classed as a strong innovator, but we are not yet an innovation leader like countries such as Belgium, Denmark, Finland, the Netherlands and Sweden.

On the Global Innovation Index, we have drifted from twelfth to nineteenth and on the International Institute for Management Development and World Competitiveness Ranking, we have drifted from seventh to thirteenth. The White Paper on enterprise states that innovation is the best way to generate sustainable long-term productivity growth and Sinn Féin agrees with that, but that is why we have to invest in research and development schemes. This is why for years Sinn Féin has called for the research and development tax credit to be increased from 25% to 30% for SMEs and for the refundable element to be paid to small and micro-companies within one year rather than three. We therefore welcome these provisions of the Bill.

The biggest disappointment, however, in Budget 2024 was the failure to prioritise support for SMEs in the face of a cost-of-doing-business crisis. Many businesses had hoped that the underspent temporary business energy support scheme, TBESS, would be re-profiled and redistributed to struggling SMEs. However, in response to a parliamentary question I received from the Minister for Enterprise, Trade and Employment, he unequivocally states that all underspent monies will be returned to the Exchequer.

While the €250 million increased cost of business, ICOB, scheme announced in budget 2024, on which the Minister will be aware that no details have been provided thus far and we are still awaiting them, is welcome, the scheme is inevitably being funded from the TBESS underspend. The frustration for Sinn Féin and for many small to medium-sized enterprises is at when TBESS and ICOB spend are subtracted from the overall TBESS underspend, nearly €900 million in funding which was earmarked to support struggling businesses will be returned to the Exchequer. We agree with business groups that this is unacceptable and we believe that the Government can and should now reverse that decision to ensure that the money which was promised to struggling businesses is available for struggling businesses. Gabhaim buíochas.

See this speech in context