Peadar Tóibín
Ceist:31. Deputy Peadar Tóibín asked the Minister for Jobs, Enterprise and Innovation if he has sought the input of the indigenous SME sector with regards the development of the knowledge development box. [37211/15]
Amharc ar fhreagraWednesday, 4 November 2015
Ceisteanna (31)
Freagraí scríofa
A key objective of the Action Plan for Jobs process, which this Government commenced in 2012, was to rebuild our economy based on enterprise and entrepreneurship, talent, innovation and exports and provide a solid foundation for future growth. The recovery in jobs and exports to date is in large part due to the considerable improvements in the business environment for enterprise that have taken place in recent years. The measures announced by the Minister for Finance in Budget 2016 last month have further strengthened the attractiveness of Ireland as a place for entrepreneurship, innovation and investment. The specific focus on entrepreneurship and the range of measures to support small and medium sized enterprises in Budget 2016, including the Knowledge Development Box, are particularly welcome.
I am very conscious of the need to ensure the indigenous Small and Medium Sized Enterprises (SME) sector is in a position to avail of the benefits arising from the Government’s decision to introduce the Knowledge Development Box. Indeed, following the announcement of the Knowledge Development Box in principle in the 2015 Budget, my officials have had ongoing engagement with SMEs, including through the mechanism of the Advisory Group on Small Business, the Entrepreneurship Forum and with Enterprise Ireland and the Local Enterprise Offices (LEOs). Through all these mechanisms I have sought to ensure that the potential and flair of our SMEs can be harnessed and the Knowledge Box initiative is another valuable tool to achieve this goal.
My Department has worked closely with the Department of Finance, including through the public consultation process, to develop the detail of the initiative and to design-in the specific requirements of SMEs. At the outset, based on discussions with my Department a question specifically addressing SMEs was included in the public consultation process - “are there any provisions that should be included in the regime to specifically encourage small indigenous enterprises?” I was very keen to ensure that the Knowledge Development Box would specifically encourage small indigenous enterprises to get involved in research and development and to avail of the incentives being devised.
I am very satisfied that the final shape of the Knowledge Box, as announced in the 2016 Budget speech, will support and encourage SMEs to undertake research and development and protect the intellectual property that arises and benefits from the measure. The Finance Bill allows for the introduction of a provision pertaining to ‘companies with income arising from intellectual property of less than €7,500,000’ which will be introduced during 2016 when the necessary legislation to give it effect is enacted [Section 30, 769R] and will be particularly relevant for SMEs.
This initiative is a key fit with my long-standing commitment to, and ambition for, Irish SMEs, as key drivers of job creation and, increasingly, innovative development, which will help drive our economy forward.