Mary Ann O'Brien (Independent) | Oireachtas source

I thank the Minister for coming to the House. I too salute him for all he has done and the progress that has been achieved to date.

I wish to raise the issue of capital gains tax, CGT. A company called Storyful sold for €16 million. It was a wonderful success story and very good for the Government because Storyful created 40 jobs. It paid €6 million in capital gains tax. One of the investors in that company said he would not take that risk again. It is a significant risk to invest in an enterprise as one is employing people and taking on all the work that comes with it. That investor said that in the future he would invest in property as it is a much easier game. The Minister gave entrepreneurs a boost in budget 2014 by changes in CGT, allowing companies to offset the profit from a sale of a company if it is reinvested in a company designed to create jobs. As an entrepreneur, but probably not full of brain cells, I found the measure very convoluted and desperately complicated. I still think I would prefer to invest my money in a house or building.

I did not feel that it was an incentive. As far as I am concerned it is a delaying tactic for paying capital gains tax because one does not have to pay CGT now if one re-invests. However, we all know that if one invests in ten companies that five will fail which is the law of average in business.

Irish people want to be creative. We talk about entrepreneurship in ourselves or our young people all of the time whether that in schools or here in Leinster House. I do not think it is fair for someone who invests in property to receive the same CGT rate as a person who invests in business and creates jobs. Perhaps the Minister thinks that it is good to give an entrepreneur an incentive for creating ten jobs. For example, he will get "X" percent off his CGT eventually, more tax relief if he creates 20 jobs while the relief will increase on a sliding scale with further job creation. I have spoken to many entrepreneurs who wonder what is the point in their investing. What does the IDA say to potential investors when they can go to the Netherlands which has no CGT? Since 2008, capital gains tax here has increased by 65% over four tranches, from 20% to 33%.

I hope that the Minister will say in his reply that we can do something about this matter, particularly for people who want to start businesses and create jobs. We might lose a little in CGT rates and tax receipts for the Government but we will get many more people into jobs who in turn will pay income tax. Such an initiative would lead to much happier citizens and, hopefully, the same for some of the young people that I am very worried about. Senator Reilly spoke about people who live in rural Ireland. We can sit here and clap ourselves on the board but she talked a great reality for us this evening.