CORPORATION TAX:THE GOVERNMENT'S commitment not to increase the corporation tax rate was "hugely important", Tánaiste and Minister for Enterprise, Trade and Employment Mary Coughlan said at a Budget briefing yesterday.
She said the statement by Minister for Finance Brian Lenihan, that he would investigate the options for "incentivising the holding of intellectual property assets", was important to attract foreign direct investment and to stimulate indigenous business.
Overall, the department's expenditure, including the national training fund, will fall by 2 per cent, to €1.951 billion, in 2009.
Funding for science, technology and innovation in 2009 is to increase by 3.9 per cent, to €335 million, over this year. Minister of State for Science, Technology and Innovation Dr Jimmy Devins said the Government was determined to continue to develop a knowledge economy.
"It would have been disastrous if the Government had to change policy in this area," he said. "We want to send out the message that this country is open for business for research and development."
Ms Coughlan noted the RD tax credit that could be set off against corporation tax had been increased to 25 per cent from 20 per cent. Support for small business, through the county and city enterprise boards, is to increase by almost €3 million, or 9 per cent.
She described as an "important new initiative" the decision to exempt from corporation tax new businesses in the first three years, up to an annual tax liability of €40,000.
The Competition Authority and the National Consumer Agency are to be merged, a move driven by synergies and consumer advantage rather than cost savings, the briefing was told.
"Competition and consumer policies are highly complementary and share a common goal of enhancing consumer welfare," the Tánaiste added. Details of the merger are to be worked out over the coming months.
Ms Coughlan said a 3 per cent decrease in the Fás budget would come mainly from savings in the areas of payroll, advertising, consultancy/PR expenditure, and administration. The administration budget at Fás is to fall by 4 per cent, to €146 million, while the training and integration supports budget is to fall by 5 per cent, to €95 million.
The decentralisation of Fás headquarters to Birr, Co Offaly, had been put on hold pending a review, she added. A site had been purchased in Birr and there was an "advance party" working from rented office space in the Offaly town.
Ms Coughlan said labour market programmes operated through Fás would be refocused and retargeted.
Total investment in labour force development in 2009 would be €1.083 billion, or 56 per cent of her department's budget, she said.
The office of the Director of Corporate Enforcement, Paul Appleby, has been given a 10 per cent budget increase to €5.47 million. The department's consultancy services budget is to see a 54 per cent drop, to €200,000, while its budget for advertising and publicity is to drop by 24 per cent, to €390,000.
