Vol. 484 No. 3
68 Mr. Boylan asked the Tánaiste and Minister for Enterprise, Trade and Employment the additional seed and development capital for start up businesses and young companies she has made available as promised in An Action Programme for the Millennium. [22074/97]
76 Mrs. Owen asked the Tánaiste and Minister for Enterprise, Trade and Employment the additional seed and development capital for start up businesses and young companies she has made available as promised in An Action Programme for the Millennium. [22073/97]
79 Mr. D'Arcy asked the Tánaiste and Minister for Enterprise, Trade and Employment the additional seed and development capital for start up businesses and young companies she has made available as promised in An Action Programme for the Millennium. [22075/97]
I propose to take Questions Nos. 68, 76 and 79 together.
The adequate provision of venture capital for growth orientated businesses is a vital ingredient in the development of enterprise in this country. I am glad to note that the supply of venture capital in Ireland has improved significantly over the past five years or so. I would particularly like to mention in this regard the seed-venture capital measure under the current Operational Programme for Industry under which eight venture capital funds, comprised of both public and private sector finance, have so far been launched and are in the market place, three of which have been launched since 1 September of this year.
Seed capital is the earliest, and riskiest, stage of the venture capital cycle. That is why investors are still apprehensive about investing in companies at the seed capital stage and why the enhancement of seed capital supply was prioritised in the Government's action programme. In this context my Department is currently examining a number of options which, if they come to fruition, will significantly improve the provision of seed capital for early stage business and I would hope to be able to report more fully on these options during 1998.
The Deputies will no doubt also be aware of the measures announced in this year's budget which will enhance the provision of seed capital and promote the supply of risk capital generally. The reduction in the aggregate amount that can be raised under the business expansion scheme from £1,000,000 to £250,000 will achieve a better targeting of BES relief on smaller companies who continually find it difficult to raise equity finance from other sources.
In addition the reduction in capital gains tax from 40 per cent to 20 per cent will contribute significantly towards increased investment across the economy, including the development capital needs of the small business sector. I am, therefore, happy to report the progress made to date in our efforts to increase the supply of capital to emerging business operations.
