Noel Harrington

THE introduction of a tax deductible scheme to allow employees invest in the companies they work in, could help lift the burden on cash strapped businesses, that’s according to West Cork Fine Gael TD Noel Harrington.

The Castletownbere TD made the comments speaking on the Credit Guarantee Bill 2012.

“Ireland is not short of initiative, entrepreneurship, guts or hard work. It is, however, short of capital.

“In seeking to address the cash concerns of business who are finding it difficult to access credit, we need to think outside the box,” he said.

“Tax concessions exist for employee share options; so why not offer tax concessions or reliefs to employees of small and medium sized enterprises who want to invest in the companies in which they work?

Deputy Harrington said that very often, an employee who inherits cash or obtains money from selling property looks to invest in a scheme that offers benefits, such as a pension fund.

“If the option was available for an employee to invest in the company in which he/ she works, while availing of a tax benefit as if he/ she were investing in a pension scheme, it could be a win-win situation for the employee and the business,” he said.