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Dáil Éireann debate -
Thursday, 4 May 1995

Vol. 452 No. 4

Written Answers. - Development of Services Sector.

Robert Molloy


82 Mr. Molloy asked the Minister for Enterprise and Employment the changes, if any, he has introduced to date to give effect to the commitment in the Government's Programme to develop and promote the services sector. [8197/95]

In accordance with the Government's commitment to the services sector, as set out in our policy document A Government of Renewal, I am examining recommendations which will extend the service sector qualifying for assistance by the development agencies and also reviewing the corporation tax structure for the international services sector. Various changes have taken place or are planned to give effect to this commitment.

The budget changes in taxation for services included a reduction in employers PRSI and a reduction in corporation tax to 38 per cent. The surcharge on close service companies was also reduced. The budget also announced changes in the VAT monthly control statement and a new direct debit facility and these are among the recommendations in the report of the task force on jobs in services. The recommendations in this report are being systematically examined and implemented by my Department. Officers with responsibility for services have been appointed in all Government Departments and strategic plans for the development of services are being prepared by all Departments.
The Oireachtas Joint Committee on Small Business and Services was established in March 1995 and will examine Government policies on the development of small business and services. A representative body for the services sector, The Irish Coalition of Service Industries was launched on 2 March 1995. The Operational Programme for Small Business will include initiatives for the services sector including a subsidised loan scheme, in respect of which, it is intended to extend eligibility for services. The Industry Operational Programme provides for a £15 million venture capital fund for software companies in this sector.
The introduction of further changes and initiatives to assist the services sector to develop and expand is a priority to which I am committed.