Budget 2021: Technology Ireland reaction
Tuesday, 13 October 2020Technology Ireland, the Ibec group that represents the technology sector, stated that Budget 2021 had many positive elements for the Irish technology sector, but that more must be done to recognise and support the Technology sector as a driving force for Ireland’s recovery.
Technology Ireland Director, Una Fitzpatrick, said: “There were some positive announcements, but as always the devil will be in the detail. We were very happy to see that our call for Knowledge Development Box relief to be extended has been included. The plan to set up an Equity Fund for Domestic High Innovation Enterprises, which will leverage European capital to match venture capital funding is very welcome but must be delivered without delay.
“The proposal to develop a detailed strategy to support employers and employees adapting to remote working is also welcome, but we need to see real and tangible progress. The current working from home allowance of €3.20 a day is rigid and a more flexible approach is needed. Equally the adjustment to CGT Entrepreneur Relief to include passive investors who have owned 5% of shares for 3 years is a step in the right direction but needs to be expanded.
“The large increase in capital investment overall is welcome and brave. We are calling on the government to use some of that investment to maintain and strengthen the health of the technology ecosystem, not just with passive support but by modelling best behaviour in GovTech with regard to digital transformation.
“The technology sector in Ireland has undoubtedly been one the keystones of Ireland’s economic and social growth in the past thirty years. Ireland is now the envy of many countries, but our current achievements are no guarantee of future success. Ireland’s technology sector is the engine that will drive Ireland’s recovery. It is vital that every aspect of government policy is focused on clearing the way for that recovery.”