Minister Martin welcomes Budget 2006

The Minister for Enterprise, Trade and Employment, Micheál Martin, T.D. welcomed today's budget (7th Dec 2005) describing it as a budget that is good for business and good for Irish people. It is a Budget that reinforces Ireland's position as a leading location in which to do business, a leading location in which to work and a leading location in which to live.

Commenting, Minister Martin said, “Today’s budget is one that puts in place the essential strategies that will ensure Ireland’s competitiveness going forward. The creation of a 3 ^rd level innovation fund and the additional captial investment in third level education will underpin the development of a knowledge economy.”

The Minister welcomed the specific increase in his own Department’s allocation for Science and Technology in 2006 saying, “This represents a €39 million (18%) increase on 2005 and reflects a continuation of the significant investment in Science and Technology, which has been under way for a number of years. The extra funding for Science and Technology announced in the Budget will be used to increase in-company research and development and to strengthen collaboration between industry and the education sector.”

The Minister also welcomed the substantial tax relief package which will further incentivise employment, reduce labour costs and reward workers. “This budget benefits the average industrial earner significantly and the removal of those on the minimum wage from the tax net will assist those who are unemployed to transfer to the active labour market,” the Minister said.

The Minister further welcomed today’s budget decision to increase the VAT registration thresholds and the administrative changes that will support small business development into the future. “These measures will reduce compliance costs of accounting for VAT and encourage early stage entrepreneurial activity. In the 2004 Finance Act we reduced the Capital Duty on Shares from 1% to 0.5%. The Government have now eliminated this tax which was an additional cost incurred by Irish companies raising capital by means of issuing shares,” the Minister added.

Minister Martin concluded by saying, “The National Investment Programme in Childcare responds well to the needs of our developing labour market and will also greatly assist families in dealing with the challenges our success brings.”

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