Liam Twomey (Fine Gael)

I would like the Minister of State to explain a matter to me. We said we would like all research and development allowable for tax reductions. He has stated this will happen after 2013 and that 2003 is the baseline level on which the entire amount will be accounted for in 2013 and beyond, but he does not want to see top loading in the system at this time.

Research is becoming incredibly important and we want to make ourselves a knowledge-based economy. Section 35 states that buildings become tax deductible, and that allowances go to the buildings. The Minister of State should examine the area of research and development to see if it, but not buildings, can receive tax allowances.

This is a mindset that continues our obsession with property in business. The intellectual rights of software and many computer applications do not need a physical building. We need to focus on the fact that research work is vital and is the central core of everything, and move away from buildings. Let the buildings be an add-on issue and not given the priority they receive here.

We may find that people who are very innovative in research and development will bring their businesses around and become highly attractive to people. People who own property may see this as an attractive issue. If I am reading this correctly, it seems as though we are saying the physical building is part of the research and development, when it is not. It is a means to an end. Research and development must be housed somewhere but the concept and mentality of how we think about it must change. We need to focus on developing concepts and not on fancy buildings.