Seanad debates

Wednesday, 1 February 2017

Knowledge Development Box (Certification of Inventions) Bill 2016: Report Stage

 

10:30 am

Photo of Pat BreenPat Breen (Clare, Fine Gael) | Oireachtas source

I have also taken some notes.

All tax expenditures are reviewed regularly in line with the Department of Finance guidelines for tax expenditure evaluation published in October 2014. These rules apply to the knowledge development box. The evaluation will take place within five years of the introduction of the scheme, and that is important for Senators. I think it was a concern for Senator Higgins specifically. It is also important to point out that the review of the overall KDB scheme will be a matter for the Minister for Finance.

Regarding amendments Nos. 11 to 14, inclusive, I remind Senators that the controller will publish annually information on the activities of the Patents Office regarding the KDB certification scheme. This information will be laid before the Houses of the Oireachtas and will therefore be in the public domain, which is something about which I think Senators had concerns. Revenue will therefore have access to the controller's report to the Minister. The information, however, will be statistical and not financial in nature and will relate to the KDB certificates only. Information on linkages with other tax measures and revenue foregone will not be known to the controller or the Minister. Such matters are, I believe, the responsibility of the Minister for Finance.

I move to amendments Nos. 15 to 17, inclusive. Given the nature of the process I have just described before the Patents Office, these amendments do not have any place in the Bill. It is open to SMEs to avail of support and incentives that apply under various research and enterprise programmes. As Minister of State with responsibility for employment and small business, I fully encourage SMEs to avail of the available supports in place, build capacity and provide jobs, which is what we are talking about and which is very much central to the Bill.

As I mentioned, evaluation of research and enterprise effectiveness occurs on an ongoing basis. This is the appropriate manner in which to undertake such evaluations. Requiring a company to indicate if it has ever received a grant subsidy or other support is part of the KDB certification scheme. The amendments would add to the burden of such companies and would not add value. The reality is that the focus should be solely on the project in front of the controller. If the project is good enough, it will be approved on the evaluation of the controller. The facts in front of the controller should be sufficient for him or her to decide if the project should get a patent and a certificate. The less of that-----

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