Paschal Donohoe (Fine Gael)

I move recommendation No. 3:

In page 90, between lines 22 and 23, to insert the following:

"(b) in subsection (1)(a) in the definition of "group expenditure on research and development" by inserting the following after subparagraphs (i) and (ii):

"(iii) expenditure (in this section referred to as 'relevant expenditure') on research and development incurred by a company which is a member of a group in developing intellectual property within the meaning of section 291A that is transferred to a company incorporated in the State that complies with section 495 shall not be included in group expenditure on Research and Development in relation to that group. The relevant expenditure will be treated as a separate Research and Development activity distinct from all other R&D activities carried on by the group for the purposes of this section.",".

When we debated these recommendations on Committee Stage, the Government indicated that it would investigate whether the legislation merited changes. This a good idea that would tilt the balance towards encouraging innovative start-up companies. In the light of the Government's commitment to consider the issue, I will not press the recommendations. However, if I consider the issue has not been sufficiently progressed by this summer, I intend to use the recommendations as the basis of a Private Members' Bill.