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An Idea
Read more about: Taxation 
Here is an idea. Reintroduce the bank levy of 5% but allow the banks to write off against this a portion of investment in small-to-medium size business start-ups, especially high-tech ones. There seems to a distinct lack of investment capital in this country where many budding entrepreneurs cannot get money from the banks due to the fact that the banks see mortgages as a safer bet than venture capital, and indeed they are.
But if we could find a way of making the banks more inclined to invest in start-ups then maybe we might get a much-needed boost in home-grown industry. Now, the bank’s investment will not be 100% written off so as to stop the banks recklessly loaning venture capital simply to get tax breaks, but if each venture capital loan could contribute a certain amount of a write-off to the banks total levy, they might be more inclined to take a chance on small enterprise rather than simple putting everything on the property market. More start-ups means more jobs, which means more tax, which means more spending increases, more tax cuts and happy days.
Simon, this is indeed a good idea.
With regard to the bank levy, I can’t see that being a runner. Simply because the banks are being driven by consumers and a little stiffer competition, perhaps an offshoot of regulation in the Irish Financial sector actually working. I cite account and loan switching being the main vehicle/driver for this.
Free banking was the latest fad in the finance world. I think competition here from RBS and hopefully HSBC in the future will energise competition a little more.
Something I’ve been looking at is the Department of Enterprise, Trade and Employment’s and An Taoiseach’s Patent Policy and the various (sic) antiquated laws surrounding same.
Professor Michael Porter (World Economic Forum, National Competitiveness Committee https://members.weforum.org/en/initiatives/gcp/index.htm) presents a few interesting set of studies on the most competitive economies in the world and the vast levels of patent registration which take place and effect in those countries. Ireland is but a minnow on the scale. The last time I saw him here he spoke of the major concerns with competitiveness with regard to Ireland’s poor infrastructure and of course the impending migration of global investment to the New Eastern Block Tigers where education and labour force costs are far cheaper than those currently on offer in Ireland.
Reformation of the Corporation Tax and general incentives should be analysed. The main problem that will arise is the EU effect.
On a different theme:
I recently asked myself (while thinking of my vote at the next election), if I was the chairman of a board of directors of a company ‘Ireland Inc.’ who would I hire to run each function?
The answers at the cabinet level are all very similar to those in power at the moment. I found this disappointing to say the least but there seems to be a lack of feasible opposition at the moment to the current captains of the ship. That is without sailing the ship terribly off on a left wing course.
J.
PS: No I wouldn’t have Bono manage it either, I think that’s just a load of ‘old hat’.
More start-ups means, more jobs means, more tax, means more spending increases, more tax cuts and means happy days.
I think your right and small medium enterprise offers more opportunities to workers for expression and individual creativity (the oil to the economies wheel).
Not to mention helping to rid us of our dangerous overdependence on direct foreign investment and multinationals.