Mary Mitchell O'Connor (Dún Laoghaire, Fine Gael) | Oireachtas source

Senator Pádraig Mac Lochlainn asked about the relevance of the Patents Office. The Patents Office has traditionally used the UK office for patent expertise for a long time. It is an issue of scale. The UK office has a huge number of patent examiners. The Irish office has four. It is a much more efficient use of resources, and under the Bill, the office will be able to refuse patent applications. There are no Brexit implications for this arrangement. Senator Mac Lochlainn also asked about the estimated cost to the Exchequer. The Minister for Finance has estimated the cost to the Exchequer of the KDB at €50 million in a full year. This figure is in respect of all aspects covered by KDB, not jut the assets which require certification. The Senator also asked about whether it is a tax avoidance tool. It is absolutely not a tax avoidance tool. The KDB has been examined by the OECD committees on harmful tax practices and has, on first examination, been found to be within the OECD guidelines. The Patents Office will rigorously examine applications under the scheme. The Revenue will be able to conduct tax audits on a random basis, as normal.

Senator Alice-Mary Higgins asked about the role of the controller. The Department and the Patents Office are aware of the additional requirements the Bill will impose. The Patents Office is satisfied that it can, at the outset, deal with the level of applications. The certificate allows only for a company to claim reduced tax rates. It does not affect the activities of the office otherwise.

In response to Senator Kieran O'Donnell, section 1 of the Bill will come into effect as soon as possible. It must be amended, given that the Bill will not be enacted by the end of the year. It is just a technical detail. We mentioned the end of 2016, and it will not happen. The Patents Office will not be involved in proofing applications for employment or economic benefit. It will rule on an application in terms of whether it is novel, non-obvious and useful.