Paschal Donohoe (Fine Gael)

We were doing so well until this point. I want to address some of the points raised by the Minister of State. This recommendation will help people to progress their ideas and encourage them to commercialise work that is under way. I know it is a good idea because people involved in this area have spontaneously suggested that it would help them do the kind of work we believe is important to the economy. I am grateful to hear that the Department of Finance is prepared to consider the proposal. If the Government is not in a position to accept this specific recommendation, the Minister of State has committed to consider the thinking behind it with a view to finding an alternative means of implementing it.

In preparing the amendment, I have worked with experts in this area and I would like to connect them with the Department. If we find in a few months' time that the matter has not been progressed, I will prepare a Private Members' Bill reflecting our deliberations on it.

I wish to respond to the Minister of State's comments on the potential for this recommendation to create windfall gains. We do not believe that would happen because the new venture will only be able to purchase the transferable technology at or below market price. The recommendation stipulates that the venture shall comply with section 495, which typically requires it to be approved by Enterprise Ireland. It would therefore have to follow the procedures put in place for it by that agency. Furthermore, the recommendation requires the venture to have shareholders, who will not invest in a company acquired at a price that does not reflect market value. This would ensure a windfall gain created by a tax manoeuvre could not be achieved.

I appreciate the broadly generous response to my recommendation. Rather than press it at this stage, I will reserve it for Report Stage and work with departmental officials to link up with the experts in this area.