Vol. 495 No. 7
95 Mrs. B. Moynihan-Cronin asked the Tánaiste and Minister for Enterprise, Trade and Employment the proposals, if any, she will make to the Departmeny of Finance to encourage employee share ownership plans in the private sector; and the other proposals, if any, she has to develop a widely owned employee stakeholding in the private sector. [21139/98]
There are at present two main types of European share ownership schemes in operation: the approved profit sharing scheme, or APSS, and the employee share ownership trust, or ESOT. The 1998 Finance Act made further enhancements to the employee share ownership trust scheme. My colleague the Minister for Finance is currently examining a number of proposals in relation to profit-sharing. The seed capital scheme which is designed to encourage entrepreneurial activity by employees in business start-ups, also seeks to encourage share ownership through tax relief for employee equity investment.
I am, therefore, pleased to see employee share ownership programmes facilitated and encouraged as far as possible. Such programmes can have the effect of spreading and increasing investment in enterprise. Employee share ownership can also encourage employee commitment to the development of enterprise and encourage co-operative management and employee relationships. The agreement Partnership 2000 for Inclusion, Employment and Competitiveness supports favourable tax treatment of employee share schemes and profit-sharing and encourages forms of financial involvement in the context of developing enterprise partnership.
