Lucinda Creighton (Dublin South East, Independent)
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81. To ask the Minister for Jobs, Enterprise and Innovation the reason he has not taken steps to promote employee share ownership of companies here; if he envisages an incentive scheme being put in place to this end; and if he will make a statement on the matter. [40816/14]

Richard Bruton (Dublin North Central, Fine Gael)
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This Government fully supports Employee Financial Involvement and provides several schemes to encourage employees to take a share in their employing companies. Share based employee remuneration can significantly reduce fixed labour costs and capital requirements, thereby providing significant cash-flow benefits to an enterprise, particularly a high potential start-up. The extent to which a company can avail of tax efficient share based employee remuneration relief in Ireland, compared to other countries, plays a significant part in this country’s attractiveness to both entrepreneurs and multinational corporations.

Irish tax legislation allows for many types of schemes which facilitate employers who wish to allocate shares, or grant options to buy shares, to their employees. These include share option schemes, ‘save as you earn’ share option schemes, approved profit sharing schemes, restricted share schemes and employee share ownership trusts. It should be noted that there is no charge to Employer PRSI on share-based remuneration. The Government believes that the aforementioned schemes provide support and encouragement for employees to become involved in Employee Financial Involvement.

The recently published National Policy Statement on Entrepreneurship in Ireland contains an action to create a business environment, in terms of company law, taxation, regulation and licensing, which makes it is easy to start and grow a new business and makes Ireland one of the most attractive environments for entrepreneurship in Europe. My colleagues and I in Government are considering share ownership and other such measures contained in the Report. This discussion will feed into the Action Plan for Jobs process, which underpins the importance of fostering an environment that supports entrepreneurial activities and assists small businesses to expand, create jobs and contribute to national economic growth.