Niall Collins (Limerick County, Fianna Fail)
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106. To ask the Minister for Finance if he has examined a special assignee relief programme that is focused on SMEs in order to attract highly skilled talent to work in sectors that have skills and labour shortages. [49985/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Special Assignee Relief Programme (SARP) is aimed at reducing the cost to employers of assigning key individuals already employed by their companies from abroad to take up positions in the Irish based operations of the employer. The intention is that the recipients of SARP will assist with the establishment of additional functions for their companies in Ireland and, due to a transfer of skills, these functions will be able to operate without the assistance of SARP after a period. The existing SARP scheme is limited to existing overseas employees of companies and is not available to new hires.

As SMEs do not tend to have operations outside Ireland, the deputy's proposal concerning a scheme that is similar to SARP but is targeted at SMEs could result in individuals from abroad being cheaper to hire than Irish residents, thereby resulting in potential displacement of employment for Irish residents in favour of non-resident job-seekers.

However, the deputy may also be aware that in Budget 2018 I announced the introduction of the new Key Employee Engagement Programme (KEEP) with the objective of supporting SMEs in Ireland in competing with larger enterprises to recruit and retain key employees. KEEP provides for a more advantageous tax treatment of gains arising on the exercise of qualifying share options acquired in SME companies. These KEEP share options will provide key employees with a financial incentive linked to the success of the company and may improve the attractiveness of an SME employment offer. In addition, the KEEP incentive is available both to individuals based in Ireland and those coming to Ireland to avail of employment opportunities here.

The commencement of the programme is subject to EU State Aid approval, which is expected to issue shortly.