items below are published as received and are for information
16th October 2013
Government continues its commitment to Small Business Sector in Budget 2014 - Minister Perry
Minister for Small Business, John Perry T.D., has welcomed the Government's continued commitment to the Small Business Sector in Budget 2014.
"Budget 2014 is another pro-small business Budget and is further proof of this Government's commitment to this important sector.
"I am very happy that the voice of small business has been heard and is receiving very specific attention in Budget 2014. I am pleased that so many of the ideas and recommendations brought to Minister Noonan's attention, through the Advisory Group on Small Business and the High Level Group on Business Regulation, both of which I Chair, have been addressed in yesterday's Budget.
"Micro and small enterprises are a central part of our economy, and their ability to succeed and grow underpins our future potential for jobs, growth and prosperity. 98.5% of all firms are small and employ over 650,000 people throughout the country.
"Budget 2014 will enable the continued delivery of over €2 Billion in new, non-bank credit schemes, targeted at the full range of businesses from micro-enterprises through SMEs to mid-sized Irish exporting businesses and high-growth technology firms, including the micro-finance scheme, credit guarantee scheme, NPRF SME schemes, development capital scheme, seed and venture capital scheme.
"This Government is now also putting in place a major package of new supports for small business start-ups and existing small businesses. This package includes €3.5 Million in additional funding for the CEBs/LEOs and a package of measures to support start-ups. This will help to support the expected creation of a further 4,500 jobs in 2014.
"This funding will further support the important role of the LEO's one-stop-shop for businesses, to be located in every community, to ensure that there are locally accessible supports available to nurture entrepreneurship and promote the creation and maintenance of employment.
Further job-creation measures included in Budget 2014 include:
· Retention of the 9% VAT rate for the hospitality sector - to support and encourage growth in small businesses in the tourism sector;
· Air Travel Tax reduced to 0% from 1st April - to encourage the development of new routes and therefore lead to more passengers and the creation of additional jobs in the tourism sector;
· VAT anti-fraud measures - to protect compliant business from unfair competition by tackling the shadow economy.
Minister Noonan also announced a package of measures aimed at supporting start-ups and growing businesses, including the following:
· Start Your Own Business Scheme (SYOB): This measure is being introduced to encourage individuals who are long-term unemployed to start their own unincorporated business. A two year exemption from income tax up to a maximum of €40,000 per annum is being provided for individuals who have been unemployed for at least 15 months prior to starting their own business;
· Capital Gains Tax relief to encourage investment in new business;
· Removal of the Employment and Investment Incentive from the Higher Earners Restriction, to incentivise higher levels of investment in SMEs;· Increasing the threshold for the Credit Review Office from €500,000 to €3 Million;
· Supporting cash-flow in the small business sector by increasing the VAT cash threshold from €1.25 Million to €2 Million;
· Building Business Capacity - A training and mentoring programme consisting of 2 days dedicated off site training tougher with export mentoring support, to enhance SMEs business and financial capacity in relation to understanding and utilising a broader range of financial products, as well as equipping them with the necessary tools to make a strong business case when applying for credit. The programme will be launched on a pilot basis with 1,000 SMEs taking part next year;
· SME Communications Strategy - to increase awareness of State supports amongst SMEs. This strategy will also ensure that there is a greater awareness amongst businesses of the soon to be re-launched credit guarantee scheme;
· A package of improvements in the R&D tax credit aimed particularly at small Irish companies.
"Through Budget 2014 we will be able to provide continued supports for the small business sector - a sector that is central to economic recovery, job creation and the future development of the Irish economy."
15 October, 2013
Over 48,000 new jobs to be supported in 2014 through DJEI Budget - Minister Bruton
More than 48,000 new jobs will be created in 2014 as a result of support from the Department of Jobs, Enterprise and Innovation, Minister for Jobs, Enterprise and Innovation Richard Bruton TD said today.
Enterprise Ireland and IDA are targeting the creation of a total of 24,000 gross new jobs in supported companies during 2014 as a result of financial supports allocated under today's Budget. Based on a conservative calculation of standard multiplier effects, this will result in the creation of more than 20,000 additional jobs elsewhere in the economy through supply companies and support services. The CEBs/LEOs are expected to support the creation of a further 4,500 jobs in 2014.
Minister Bruton was speaking at a press briefing on job-creation in Budget 2014 along with Minister of State for Small Business John Perry TD and Minister of State for Research and Innovation Sean Sherlock TD.
Further job-creation measures included in Budget 2014 include:
· A package of new measures to support start-ups and growing businesses, including an income tax exemption for long-term unemployed people who start a business and incentives for investment in start-up businesses
· €3.5million in additional funding for CEBs/LEOs
· Continued provision for a total of over €2billion in non-bank credit schemes for business
· More than €400million in total funding invested through EI and SFI research and innovation programmes in 2014, taking into account expected levels of funding from various sources including EU and industry, in line with 2013 investment
· Full delivery of Action Plan for Jobs 2014
· Supports for jobs growth in targeted sectors including retention of the 9% VAT rate for the hospitality sector, 0% air travel tax, home renovation incentive, extension of the Living Cities Initiative
Minister Bruton said: "This is another pro-jobs, pro-enterprise Budget and is further clear statement of intent by this Government to continue the job we started in 2011 to rebuild our shattered economy.
"Budget 2014 is aimed at building on and accelerating the progress we are making in addressing the massive jobs challenge we inherited. In an extremely difficult Budgetary environment, I am happy that investment right across my Department's capital programme in 2014 will continue in line with 2013 expenditure levels, and new funding is being provided for CEB/LEO initiatives.".
"Through investments provided in Budget 2014 my Department will support the creation of almost 50,000 new jobs in 2014. We will continue the cross-Government focus on the jobs agenda with continued support for €2billion in non-bank credit schemes for business and further new incentives for start-ups and SMEs. And in 2014 total spending on research and innovation supported by my Department through Enterprise Ireland and SFI, at over €400million, will be in line with 2013 levels.
"I am also very happy that entrepreneurs and start-up businesses, an area that my Department and I have targeted for supports, is receiving very specific attention today. Earlier this year I asked Sean O'Sullivan to Chair an Entrepreneurs Forum and I am pleased that so many of the ideas that they have championed are being addressed in today's Budget. Government is now putting in place a major package of new supports for start-up and growing businesses, including €3.5million in additional funding for the CEBs/LEOs and a package of measures to support start-ups.
"We inherited an economy which had been losing 7,000 jobs per month for 36 months. Through the measures we have put in place, we are now creating over 3,000 per month. Through Budget 2014 we will be able to provide continued supports for the full range of vital job supports that have proved instrumental in turning around the jobs market and getting growth into the economy over the past two years. Crucially, we are also providing for new and innovative measures that will build on this progress, accelerate the trends we have started and create the jobs we need".
Budget 2014 will enable the delivery of a range of research and innovation supports, which are crucial in achieving a return to economic growth through growing innovation in Ireland. The measures this will deliver include:
· Delivery of DJEI measures under Action Plan for Jobs 2014, to be announced early next year.
· IDA will target approximately 12,000 new jobs in 2014.
· Enterprise Ireland will target some 12,000 new jobs and generate €17.5billion in exports. The Agency will also support 95 new High Potential Start-Up companies with commitments to create 2,100 new jobs.
· A total of over €400million invested through EI and SFI research and innovation programmes in 2014, taking into account all sources of funding including expected levels of funding from industry and EU sources, in line with investment in 2013.
· 2-3 new, large, internationally visible research centres, in sectors of national strategic importance. SFI will look to invest €10m - €15m in these centres in 2014 in collaborations with industry.
· Continued support to over 20 world-class SFI research centres and to a cohort of 3,000 researchers to maintain and drive Ireland's job creation strategy.
· SFI will continue to leverage funding for research centres programmes, building on successes to date. In 2011, SFI funded researchers leveraged €89m in non-Exchequer funding from a number of sources, mainly from private enterprise and from the EU. In 2012, this figure increased to €99.5m and this trend will continue in future years, as Horizon 2020 funding is drawn down
· A national level "Health Innovation Hub", to drive collaboration between the health system and commercial enterprises leading to the development and commercialisation of new healthcare technologies, products, services and start-ups emerging from within the health system and/or firms." This will deliver a significant positive benefit for the life-sciences industry in Ireland. This sector is of strategic importance to Ireland, representing 50,000 jobs and exports of €51 billion.
· An additional €3.5million in supports for start-ups and growing businesses through the CEBs/LEOs
Budget 2014 will enable the continued delivery of over €2billion in new, non-bank credit schemes, targeted at the full range of businesses from micro-enterprises through SMEs to mid-sized Irish exporting businesses and high-growth technology firms, including micro-finance scheme, credit guarantee scheme, NPRF SME schemes, development capital scheme, seed and venture capital scheme.
SUPPORTING START-UP BUSINESSES
The Government today announced a package of measures aimed at supporting start-ups and growing businesses, including:
· Start Your Own Business Scheme - 2-year income tax exemption for long-term unemployed people who start their own business
· Capital Gains Tax relief to encourage investment in new business
· Removal of the Employment and Investment Incentive from the Higher Earners Restriction, to incentivise higher levels of investment in SMEs
· Increasing the threshold for the Credit Review Office from €500,000 to €3million
· Supporting cash-flow by increasing the VAT cash threshold from €1.25million to €2million
· Programmes to improve business and financial capacity for SMEs
· A package of improvements in the R&D tax credit aimed particularly at small Irish companies
· A pilot programme of financial capability supports to assist 1000 companies across the country in 2014
DETAILED BREAKDOWN OF CAPITAL PROGRAMME
· The IDA's capital budget will enable it to deliver on its job creation targets as set out in "Horizon 2020" Strategy.
· This will be used to support FDI clients through employment grants, training grants and physical infrastructure.
· The IDA new job performance for the years 2010, 2011 & 2012 are 10,897: 13,068: & 12,722 respectively - i.e total of 36,687 jobs. Final figures for 2013 job performance will be available in early 2014.
· IDA results to end June show that FDI into Ireland was very strong for the first half of 2013, with figures showing that 70 individual projects had been secured, with a potential to create in excess of 7,000 jobs. (Among those announcing investments in Ireland so far in 2013 are eBay 450 jobs, EMC 400 jobs, Pfizer 250 jobs, Symantec 400 jobs, Salesforce 100 jobs)
· The 2014 jobs target for IDA will be in the region of 12,000 jobs, based on the targets set in "Horizon 2020" Strategy., which commit IDA to delivering 62,000 new jobs over a 5-year period, to end 2014.
(a) Enterprise supports
EI budget for 2014 will allow it to continue to invest in start-up companies especially those with high potential, provide mentoring, management development and export related supports to companies that want to scale and develop new markets, support new R&D investment and activity in companies to find and support new Irish exporters and to create jobs in Irish companies.
EI spending under these headings next year expect to generate some 12,000 new jobs and generate €17.5 bn in exports (€16.2bn in 2012).
EI is targeting over 750 client companies spending between 100k and 1m on R&D and over 125 Irish companies spending over €1m on R&D.
Other programmes will continue to be funded:
· Lean Programmes to increase business efficiency and competitiveness aiding company sustainability and protecting jobs
· Continued operation of the Graduates 4 International Growth Programme (G4IG), an initiative that brings together a graduate and a company that are both focused on making a lasting impact in overseas markets.
· Management Development Programmes e.g. Excel at Export Selling, Leadership 4 Growth, International Selling, Accelerated Growth and Sprint - leadership and strategy programmes aimed at developing and enhancing leadership capabilities to lead companies capable of achieving sustained international growth.
· The continued role out of sector specific and region specific Competitive Feasibility Funds, expansion packages to support employment and other competitive funds e.g. the Going Global Funds.
· Participation by hundreds of companies in trade events and missions throughout 2013. Companies will also benefit from the recently announced new Enterprise Ireland offices in Texas and Turkey and the 20 additional staff that are being recruited locally on fixed term contracts and will be assigned to offices in key target markets including in particular the BRICS countries (Brazil, Russia, India, China and South Africa)
(b) Science, technology and innovation
Investment in 2014 will allow Enterprise Ireland to:
· Continue to drive the innovation performance of indigenous industry and commercialisation of research.
· Support 95 Innovative High Potential Start Up companies in 2014, with an associated 2,100 jobs, across a range of sectors, including Lifesciences, ICT, Food and Energy. These companies are the source of potential star performers of the future and each one will create at least €1m in export sales.
· Build on the multi-annual €22million Technology Transfer Strengthening Initiative, aimed at driving forward the research commercialisation agenda. This 4-year programme, which runs from 2013 to 2016, will produce 150 companies and will license 514 commercial technologies to industry. This programme will also deliver, through the new central Technology Transfer Office, a responsive interface between companies and the wealth of technology, skills and "know how" available in Ireland's higher education system.
· Produce almost 75 new businesses in 2014 through the New Frontiers Programme, Enterprise Ireland's entrepreneurial training programme.
· Support the Innovation Voucher programme, which enables small businesses to purchase innovation expertise from a third level institute. In 2014, Innovation Vouchers will support small companies in Ireland to complete over 400 projects.
· Support companies in Ireland to undertake 50 important collaborative projects with Irish third level institutions, through the Innovation Partnership Programme.
· Fund in the region of 80 R&D projects for client companies that are valued in excess €100,000.
· It is expected also that €100m will be drawn down from EU funding in 2014.
€3.5million in additional funding for CEBs/LEOs in 2014, for investment in supports for start-ups and growing businesses
Science Foundation Ireland (SFI)
The SFI Budget will facilitate continued underpinning of the Action Plan for Jobs commitment to use research and innovation to drive job creation, through funding enterprise-facing research teams and major research centres across many strategically important areas, such as cloud computing, future internet, energy, marine/ocean energy, health, medical devices, pharmaceuticals and agriculture.
SFI will continue to leverage funding for research centres programmes, building on successes to date. In 2011, SFI funded researchers leveraged €89m in non-Exchequer funding from a number of sources, mainly from private enterprise and from the EU. In 2012, this figure increased to €99.5m and this trend will continue in future years, as Horizon 2020 funding is drawn down.
· The funding allocation in 2014 will allow SFI maintain its direct support to over 20 world-class research centres and to a cohort of circa. 2800 researchers who are connected to over 700 companies. SFI will also offer supports to young talented scientists to grow the necessary skillset to support Ireland's future sustainable, high-value jobs capability.
· A key focus for SFI in 2014 will be on the establishment , 2- 3 new large-scale Research Centres, supporting 200-300 jobs, in sectors of national strategic importance such as Medical Devices, Software, Diagnostics, Telecommunications, Smart Grids, Sustainable Food Production and Processing etc. There will be significant industry engagement and co-funding (minimum 30%) of these centres. Exchequer funding for these new centres will amount to €10m-€15m in 2014
· Funding for 4-5 Research 'Spokes' , which are essentially a mechanism to enable the addition of new industry and academic partners and projects to an existing SFI Research Centre, so allowing the Centre to expand and develop in line with new priorities and opportunities
· In 2013 to date, more than 45% of IDA jobs announcements so far have been in companies with links to SFI research teams. That's over 3,700 jobs in companies linked to SFI funded researchers.
· The enactment of the new Industrial Development (Science Foundation Ireland) Act 2013 will see SFI funded activities move into the applied research arena, as well as continuing to provide key supports for oriented basic research. The extended remit will also enable SFI to fund on a wider geographical basis, meaning that for the first-time SFI will be able to fund on an all-Island basis.
· In addition the Foundation will be able to enhance commercialisation of previous research investments, primarily through their Technology Innovation Development Awards programme. This is in line with commitments in both the Action Plan for Jobs and the Programme for Government to drive commercialisation across the State's innovation system.
· SFI will also be able to fund programmes aimed at increasing industrial engagement with SFI and at facilitating Irish research groups to lead and win in Horizon 2020 in the years ahead.
· SFI will continue in 2014 to leverage funding for research centres programmes, building on successes to date.
The Programme for Research in Third Level Institutions
Capital investment in the multi-annual PRTLI Programme will continue to improve Ireland's competitive offering in terms of research capability, through delivery of:
· Over 20 key physical infrastructural projects (buildings and equipment) across Ireland's Higher Education Institutes, in areas such as biomedicine, materials science, nanotechnology, health, marine and energy. Over the lifetime of Cycle 5 of the Programme, these projects are supporting 2,000 jobs in Ireland's construction sector.
2014 allocation will support:
· A number of new research breakthroughs, such as a possible anti-counterfeiting device, various MedTech technologies, and applications in the areas of photonics and energy.
· Continued leading edge collaboration with industry in the area of ICT, photonics.
· At least 2 new spin-offs from Tyndall technology.
In line with its commitments under the Comprehensive Review of Expenditure the Department and its Agencies will deliver a further €13m in efficiency savings in 2014. This significant amount is in addition to savings being delivered under the Haddington Road agreement.
The Department and its agencies will continue to deliver comprehensive programmes of activity and supports in respect of Jobs and Enterprise, Innovation and Regulation at a further reduced cost to the taxpayer.
The 2013 Gross Current allocation is approximately €19m less than the 2013 Revised Estimates Volume (REV).
The overall reductions from the 2013 REV allocation to the 2014 Budget allocation are in line with the Government's adherence to the EU/IMF Consolidation Programme and to returning our public finances to a sound footing.
One example of the benefits accruing to Ireland through the DJEI Current expenditure provision in 2014 relates to Ireland's membership of, and involvement in, the European Space Agency (ESA). Through targeted investment of public funds, Ireland's participation in ESA, co-ordinated by Enterprise Ireland, will continue to support Irish companies in the growing European and global space markets. Investment in space programmes and associated support to Irish industry yields an economic dividend much greater than the initial State investment.
Exports in EI supported clients involved in ESA are projected to double from €27 million in 2011 to over €56 million by 2015. Employment in this sector is projected to rise by over 25% over the coming year or so - from 1,570 in 2011 to over 2,000 quality jobs in 2014 and 2015.
The State investment in the coming years in ESA Space industry and research programmes is projected to deliver the following impacts:
· A projected rise in total employment in ESA participating companies in the space industry and research sector from 1,570 in 2011 to over 2,000 in 2015.
· A doubling of exports in ESA participating companies, from €27m in 2011 to over €56m by 2015.
· Growth in turnover as a result of ESA investment from €35m in 2011 to over €70m by 2015.
Also in 2014, the Programme for Research in Third Level Institutions will fund 15 Structured PhD and Emergent Technology programmes, involving 450 research personnel..
This will deliver for industry by making PhDs "workplace ready", outside of academia and will enhance Ireland's labour force capacity in a number of key strategic areas, including Pharma/biopharmaceuticals, Medical Technologies, ICT, Food and Drink, Energy and Environment, Translational research sciences etc.
15 October, 2013
Budget 2014 supports culture, heritage, and jobs - Deenihan
· For every week of 2014, more than €2.3 million will be invested in arts, culture and film
· Additional funding of €17 million announced for Limerick National City of Culture, for Decade of Centenaries 1912 - 1922, and for works on heritage buildings
· Provision made for restoration of historic National Gallery of Ireland to proceed
· Jobs boost from capital projects and from heritage building restoration
· Bringing forward new regime for film tax relief to 2015 is welcome, as is extending reliefs to non-EU talent
Jimmy Deenihan TD, Minister for Arts, Heritage and the Gaeltacht, has outlined the funding that will be made available from his Department for the support and promotion of arts, culture, film and heritage for 2014. Minister Deenihan has also welcomed a number of new funding initiatives which will provide significant support for the Limerick National City of Culture 2014, for the Decade of Centenaries 1912 - 1922, and for Heritage Buildings at Risk.
Departmental funding: Funding from the Department of Arts, Heritage and the Gaeltacht for 2014 will include:
· Almost €123 million for Arts, Culture and Film, including almost €56m for the Arts Council and €14 million for the Irish Film Board;
· Almost €45 million for the conservation and protection of Ireland's built and natural heritage;
· Almost €40 million for the Irish Language, the Gaeltacht and the Islands; and,
· Over €38 million for North-South Co-Operation, including support for two North-South implementation bodies - Waterways Ireland and An Foras Teanga.
Whilst there has been a reduction of approximately €16.9 million (7%) in exchequer funding to the Department of Arts, Heritage and the Gaeltacht for 2014, this has been offset by new funding for three jobs-rich initiatives totalling €17 million. These projects are to be funded from the National Lottery licence transaction, and include:
· €6 million for the Limerick National City of Culture 2014 - Limerick is the inaugural National City of Culture, a new designation which a city will hold for one calendar year, as announced by Minister Deenihan in 2012;
· €6 million for projects relating to the Decade of Centenaries 1912 - 1922 - this is to fund a number of projects including works at the GPO; and,
· €5 million for the Traditional Skills and Buildings at Risk Jobs Leverage Scheme 2014 - this will be directed at renovation projects for buildings which are protected.
Minister Deenihan said: On Budget 2014: "Just like in every Department, I have had to make difficult choices when it comes to 2014. However, this budget is a really important step to strengthening our economy, exiting the bailout and creating jobs."
On new additional funding:"The new funding of €17 million announced today is very significant. It will allow the inaugural Limerick National City of Culture 2014, which I announced last year, to put on an amazing array of events. It will allow us to move ahead with major building projects to mark the centenary of the 1916 Rising. And, it will give allow for urgent repairs on heritage buildings the length and breadth of the country to take place.
On jobs: "I have made provision for the refurbishment of the historic wings of the National Gallery of Ireland to proceed as planned. This will create approximately 270 high end construction jobs, many of which are specialist, over the timeline of the project.
"The new funding of €17 million will also deliver new jobs in a range of areas including in heritage building restoration, and in the construction sector arising from capital projects to mark the 1916 Rising. The funding will also support jobs in the arts and in cultural tourism in Limerick which will be Ireland's first National City of Culture next year."
On funding to the arts and film: "Even with a reduced Departmental budget, every week more than €2.3 million will be invested in arts, culture and film next year. Well over half of this - €70 million - will go to the Arts Council and the Film Board. This will help to maintain and support the important role the arts play in innovation and expression as well as job creation and economic recovery."
On the cultural institutions: "The national cultural institutions attract 2.75 million visitors a year. I have taken that into account by allocating as much as possible to the National Museum and National Library, and holding allocations steady to the National Archives. I want to enable institutions to maintain services to the public over the course of 2014, and I have therefore prioritised these national institutions over some international events for next year."
On film: "I welcome the announcement by Minister Noonan that he intends to bring forward the new regime for film tax reliefs to 2015, and also extend the definition of 'eligible individual' in the scheme for film relief to include non-EU talent. This will increase the attractiveness of Ireland as a destination for film investment."
On Living City:Minister Deenihan also welcomed the decision to extend the living city initiative to Cork, Galway, Kilkenny and Dublin, for all buildings built prior to 1915.
"This incentive targets Ireland's historic building stock. It's a tangible example of Government commitment to sustainable development - so that we don't repeat the mistakes of the past - and it focuses on our existing urban core. This scheme, which complements the new investment scheme in the Traditional Skills and Buildings at Risk Jobs Leverage Scheme, will ensure that Ireland's major urban cities are enhanced, continue to have vibrant city centres, and encourage increased tourism and direct inward investment."
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