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Dáil Éireann Debate, Wednesday - 19 December 2018

Wednesday, 19 December 2018

Questions (141)

Michael McGrath

Question:

141. Deputy Michael McGrath asked the Minister for Finance the take-up of the key employee engagement programme in each month since its establishment; the number of companies that have availed of the scheme in each of these months by multinational companies and SME companies; and if he will make a statement on the matter. [53755/18]

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Written answers

The Key Employee Engagement Programme, KEEP, came into effect on 1 January 2018 to help SMEs to attract and retain employees in our highly competitive labour market. I am advised by Revenue that details of the costs and numbers availing of this programme will only be available once the relevant employer tax returns for 2018 have been received and processed. The first KEEP return is due on 31 March 2019.

Regarding the Deputy's question as to the breakdown of the number of companies by multinational and SME sector, it should be noted that a company whose shares are the subject of KEEP share options must, at the date of grant, be a micro, small or medium-sized enterprise. In practical terms, this refers to companies which employ fewer than 250 persons, and which have an annual turnover not exceeding €50 million or an annual balance sheet total not exceeding €43 million.

Over the past year, I have become aware that take-up has been less than expected and I took early action in relation to KEEP in the context of Finance Bill 2018.

As the Deputy is aware, Finance Bill 2018 provided for a number of changes to the incentive as follows:

- the maximum annual market value of share options that may be granted to a qualifying employee has increased to equal to 100% of annual emoluments in the year of assessment (from 50% of annual emoluments);

- the overall value of options that may be awarded per employee has increased from the limit of €250,000 in any 3 year period to a lifetime limit of €300,000.

The €3,000,000 overall KEEP limit remains for companies and employees are not restricted in entering into future KEEP arrangements with future employers.

I expect that these changes will help support SMEs to compete for skilled staff. However, my Department also intends to further review KEEP in 2019 once the 2018 data on the scheme become available. It is envisaged that this exercise will include a consultation process with all relevant stakeholders.

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