Peadar Tóibín (Meath West, Sinn Fein)
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Question 137: To ask the Minister for Finance if European Commission approval has been received for the new business investments targeting the employment scheme that is replacing the business expansion scheme; the way the two schemes differ; when the new scheme will be operational; and if he will make a statement on the matter. [5877/11]

Michael Noonan (Limerick City, Fine Gael)
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The approval of the European Commission has not yet been received for the Employment and Investment Incentive (EII) and Seed Capital Scheme, which is set to replace the current Business Expansion Scheme (BES) and Seed Capital Schemes (SCS). My officials are currently in discussions with the Commission with regard to the changes proposed. These include the following: An increase in the lifetime limit that can be raised by companies from €2 million to €10 million.

An increase in the annual limit that can be raised from €1.5 to €2.5 million.

The removal of the majority of the qualifying trades restrictions.

A simplification of the certification requirements.

A reduction in the rate of tax relief for investors from 41% to 30% along with a reduction in the holding period required for shares from five to three years.

The potential for a further 11% in tax relief, at the end of the three year holding period, where the company has increased employment or spent at least 30% of the funding raised on research and development.

The new incentive will become operational once the approval of the European Commission has been received. Pending the receipt of this approval, the existing BES will continue to operate.

It is not possible to stipulate when the approval of the European Commission will be received. However, it is hoped that a favourable decision will be made in as short a time-frame as possible.

Peadar Tóibín (Meath West, Sinn Fein)
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Question 138: To ask the Minister for Finance when business will be able to access funds from the Strategic Investment Bank; the capital and funds that will be made available by the bank for small medium enterprise; the rates that will be attached to the funds; the persons that will oversee the operations and the bank; if the credit review office will have a remit to review appeals of refusal of credit at the bank; and if he will make a statement on the matter. [5882/11]

Michael Noonan (Limerick City, Fine Gael)
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The Programme for Government contains a clear commitment to creating a Strategic Investment Bank that will become a provider of finance to large capital projects, a conduit for venture capital and a lender to SMEs. As I indicated in a reply to you on 23 March (PQ 5399), the Government will only be in a position to decide on the timing and the structure for setting up the Strategic Investment Bank when the necessary detailed assessment and planning work has been done. Therefore it would be premature to discuss its functions and responsibilities at this stage. For the same reasons the Government Legislation Programme for the summer session which was published on 5 April does not contain legislation in relation to the Strategic Investment Bank.