A package of pro-jobs measures in Budget 2013 has boosted the Irish Government’s plan to rebuild the economy and create sustainable jobs, according to the Minister for Jobs, Enterprise and Innovation, Richard Bruton, TD.
“The Government in Budget 2013 made the choice to support job creation by avoiding increases in income tax, and restated the Government’s absolute commitment to the 12.5pc corporation tax rate,” Bruton said.
“In a very difficult Budget, a package of pro-jobs tax measures are being delivered: the capital budget for enterprise supports is being protected, and a series of innovative finance schemes being delivered to leverage exchequer funding with private funding to provide more of the credit our businesses badly need.”
Budget 2013 is to enable the delivery of supports for companies in need of credit. The Government is using resources to leverage funding from the private sector to provide credit for businesses of various sizes and in various sectors:
- Seed and venture capital scheme: €175m exchequer funding is expected to leverage a further €525m in private-sector funding to create €700m available. More than 100 innovative Irish companies are expected to benefit, with thousands of jobs created and hundreds of millions of euros in additional exports generated. Full details will be announced as part of Action Plan for Jobs 2013.
- Some €25m additional exchequer allocation under the Development Capital Scheme which will now provide €225m in funding to mid-sized indigenous firms, to target the development of a strong mittelstand-type indigenous sector.
- The National Pensions Reserve Fund is developing support funds for the SME sector, initially ranging in size from €100m to €400m, to provide equity, credit and recovery investment.
- Continued implementation of the €90m microfinance scheme, the €450m Credit Guarantee Scheme and the €120m second call under Innovation Fund Ireland.
- Increase to €4bn of the lending targets for the two pillar banks for 2013. Both banks are on course to meet their 2012 targets of €3.5bn.
- Improvements to the Credit Review Office, including extending its team of reviewers. The CRO has overturned more than half of the bank lending decisions which have been appealed to it.
Protection of Department of Jobs, Enterprise and Innovation’s capital budget
Bruton also announced that his department’s capital budget has been protected for 2013, with a total allocation of €505m after agreement was secured on retention of own resource income and capital carryover. Among the measures this will deliver include:
- Delivery of Department of Jobs, Enterprise and Innovation measures under Action Plan for Jobs 2013.
- IDA will target about 12,000 new jobs in 2013 with its capital budget fully protected.
- Enterprise Ireland will support 95 new High Potential Start-Up companies with commitments to create at least 1,000 new jobs. Enterprise Ireland, through the new Potential Exporters Division, will also engage with 300 new first-time exporting companies.
- Delivery of three new technology centres in pharmaceutical production, data analytics and connected health to support the commercialisation of research ideas, spin-out companies and job-creation. The network of 15 technology centres will interact with 250 companies in 2013.
- Delivery of an enhanced support structure for micro-enterprise and small business through a centre of excellence in Enterprise Ireland and local enterprise offices.
- Science Foundation Ireland will continue its support to a cohort of 3,000 researchers who are working with more than 600 industry partners who employ more than 90,000 people in Ireland.
- As part of the SFI strategy 2012-2020, the budget announced today will facilitate an increase in large-scale research centres. SFI will look to invest €100m in large, internationally visible centres (more than 100 researchers, typically with more than 20 industry partners) over the next six years in collaborations with industry.
Bruton also said he looks forward to working with departments over the coming weeks to finalise the PlusOne scheme, which will provide a financial incentive to employers to hire more people who are long-term unemployed, replacing Revenue Job Assist and the Employer PRSI Incentive scheme.