Denis O'Donovan (Fianna Fail)
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I welcome the Minister. We are resuming consideration of the Bill on amendment No. 6 to section 18. This amendment has already been discussed as part of a group with amendment No. 5. The debate cannot be re-opened on that group of amendments. However, I understand the Minister would like to signal very briefly her intentions regarding Report Stage. I will use my discretion and allow her to speak briefly.

Mary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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On Committee Stage on 14 December I thanked the Senators for their amendments but for the reasons I gave at the time I did not accept the amendments. As indicated, I am prepared to revert on Report Stage with an amendment to section 18 which accommodates the concerns Senators had in relation to section 18 and the publication of the controller’s annual report on the scheme. This amendment will provide that the controller’s annual report on the KDB certification scheme will be laid before the Houses of the Oireachtas and will thus be in the public domain. In relation to amendment No. 7 tabled by Senator Mac Lochlainn, I should point out that the controller is an independent office holder who acts under the superintendence and direction of the Minister.

The provision in section 18(2) is a necessary safeguard that allows the controller to undertake his statutory functions without undue and inappropriate interference by any Minister. Senator Mac Lochlainn's amendment would undermine the independence of the controller in carrying out his statutory functions under the Bill. This is also a feature of the legislation governing the Office of the Director of Corporate Enforcement which is another independent office under my Department. The controller must be able to undertake this function without fear of interference. For that reason, I am not accepting amendment No. 7.

Amendment No. 8 in the name of Senator Mac Lochlainn seeks the inclusion of the name of applicants for the KDB scheme to be included in the report to the Minister. The names of applicants are not included in the controller’s annual reports of his activities for the office covering patents, trademarks and designs. Section 18 of the Bill follows the practice. Moreover, as Senators will be aware, the Revenue Commissioners do not disclose the identity of taxpayers and indeed the Taxes Consolidation Act 1997 prevents Revenue from releasing taxpayer information. For that reason I will not accept amendment No. 8.

As regards amendment No. 9 in the name of Senators Higgins and Ruane it is the case that applications before the office will be examined individually on the basis of novelty, usefulness and non-obviousness. In the case of refusals, the office will follow exactly the same process as it does now in relation to refusals of patents, trademarks or designs. That is, the reasons for refusal are case specific and are not made publicly available and that is the intention also in this Bill. For those reasons I do not accept amendment No. 9.

Pádraig Mac Lochlainn (Sinn Fein)
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I move amendment No. 7:

In page 14, lines 24 to 27, to delete all words from and including ", but” in line 24 down to and including "Act" in line 27.

Pádraig Mac Lochlainn (Sinn Fein)
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I move amendment No. 8:

In page 14, line 36, after "applications" to insert "and name of applicants".

Frances Black (Independent)
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I welcome the Minister to the House and thank her for bringing the Bill through the House. It proposes to expand access to the preferential tax rate for income generated on intellectual property and patents with the intention of nurturing innovation and encouraging companies to locate high value jobs in Ireland. I recognise the Minister and the Department have been engaging with us on this area and we are happy to work with the Minister and any other Members of the House on the Bill between now and Report Stage.

My colleague, Senator Higgins, has already debated a number of aspects of the Bill on Second and Committee Stages and I remind the House that during these contributions the Senator indicated her wish to withdraw her amendments and reserves the right to reintroduce them or variants of them on Report Stage.

With regard to amendments Nos. 10, 10a and 10b, the Bill, as drafted, does not require companies applying for the knowledge development box certificate to indicate whether they already benefit from other grants, subsidies, tax incentives or other enterprise and-or research and development supports from a public or semi-State body. There needs to be clear understanding of how the knowledge box certificate fits in with other grants, tax incentives or State supports the company receives or has received in the past so a big picture can be formed of Ireland's enterprise and innovation strategy.

As Senator Higgins has previously stated, we would like to see a cost-benefit analysis of the knowledge box proposal and for there to be an annual exchange of information between the Department and Revenue so a cost-benefit analysis of the knowledge development box can be conducted annually. The measure will have a cost in terms of tax revenue foregone. We need to have a clear picture of the annual cost to the Exchequer of the measure and be in a position to monitor and assess the costs and benefits of it over the coming years. We must be confident the knowledge development box operates in the way it was intended and does not lead to a disproportionate erosion of our tax base. I wish to withdraw the amendments co-signed with Senator Higgins and reserve the right to reintroduce them on Report Stage.

Denis O'Donovan (Fianna Fail)
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The Senator's position is noted.

Denis O'Donovan (Fianna Fail)
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When is it proposed to take Report Stage?

James Reilly (Fine Gael)
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Next Tuesday.