Léim ar aghaidh chuig an bpríomhábhar
Gnáthamharc

Dáil Éireann díospóireacht -
Thursday, 6 Nov 1997

Vol. 482 No. 5

Written Answers - Employee Share Ownership.

Breeda Moynihan-Cronin

Ceist:

19 Mrs. B. Moynihan-Cronin asked the Tánaiste and Minister for Enterprise, Trade and Employment the plans, if any, she has to encourage employee share ownership programmes throughout the private sector; the recommendations, if any, she will make to the Department of Finance in time for the forthcoming budget; and if she will make a statement on the matter. [18354/97]

I am of course happy to see employee share ownership programmes facilitated and encouraged as far as possible. While programmes can have the effect of spreading and increasing investment in enterprise, the main benefit arises out of encouraging employee commitment to the development of enterprise and encourage co-operative management and employee relationships.

There are at present two main types of European share ownership schemes in operation: approved profit sharing schemes (or APSSs), which have been in operation since 1982 and have involved approximately 100,000 employees. This year the Finance Act provided for a more flexible form of share ownership — employee share ownership trust (or ESOTs), which is intended to run in tandem with the APSS and to provide better marketability for employee shareholding in employer companies. Other forms of share ownership are encouraged by tax relief for employee equity investment, such as the seed capital scheme designed to encourage entrepreneurial activity by employees in business start-ups. Employees can also obtain tax relief for purchase of new shares in their employer company. Takeup of these schemes is of course a matter for individual companies and their employees.

Any adjustments to tax based support for employee share ownership will be based on the extent of demand for amendments to the schemes from business or employees and the overall needs of enterprise investment. Decisions on such adjustments are of course a matter for the Government, and would be considered in light of the overall budget process.

Barr
Roinn