Big focus on SME job creation in Budget 2013 – Deering

5th December, 2012

5th December 2012

Carlow Fine Gael TD, Pat deering, has welcomed the job creation measures announced by the Minister for Finance, Michael Noonan TD, in Budget 2013.

“I am very pleased with the measures announced by Minister Noonan aimed at protecting jobs and creating new ones. Ireland has a large export market which has been making steady progress over the last eighteen months, supported by a growing indigenous sector which is boosting our export growth. Budget 2013 contains measures which will address the difficulties many SMEs face in today’s difficult economic climate.

“One such measure is the 10 Point Tax Reform Plan. This includes measures such as reforming the three year corporation tax relief for start-up companies to allow unused credits to be carried forward; increasing the cash receipts basis threshold for VAT from €1 million to €1.25 million and amending the close company surcharge; amending the R&D tax credit by doubling the initial spend eligible for the credit from €100,000 to €200,000 to encourage innovation and business expansion; and extending the Foreign Earnings Deduction for work-related travel to certain countries and beyond the BRICS.

“Combined, these measures will help SMEs to improve their cash flow, help them access funding, boost demand for their products in new markets and incentivise them to create jobs.“Access to credit has been a major challenge for new and existing small businesses. While the Minister for Enterprise, Jobs and Innovation, Richard Bruton TD, has already done a lot of work to assist SMEs in getting credit, additional measures were announced in Budget 2013 which will provide even more support in this area. These include; improving response times at the Credit Review Office (CRO), the publication by the CRO of specific guidance for SMEs on accessing credit from banks; and the development of a range of support funds to provide equity, finance, restructuring and recovery investment to the SME sector. The funds are expected to range in size from €100 million to €400 million.

“I would like to commend Ministers Noonan and Bruton for keeping such a strong focus on job creation in what is a very difficult economic climate. Budget 2013 is about fairness, stimulating jobs and encouraging SMEs to create jobs and I believe that the Government has struck this balance without increasing income tax.”