I thank the Tánaiste for his response. I welcome the Government's continuing focus on competitiveness and supporting indigenous enterprise. As we all know, investment is vital in enabling companies to grow and expand and for start-up companies to get off the ground. However, Ireland's 33% CGT rate remains among the highest in Europe and there are growing concerns that it can discourage reinvestment, entrepreneurship and business scaling. The Taoiseach himself recently acknowledged concerns that Ireland may be losing some investment and capital when people sell businesses and relocate elsewhere. He also made the important point that what matters is ensuring that capital is recycled back into smaller companies, innovation and new technologies. In that context, would the Tánaiste agree that there is merit in examining a more competitive and targeted capital gains tax approach for active business assets, particularly where proceeds are reinvested into Irish enterprise, regional employment and productive economic activity?
Sentiment score: 0.36
Another issue that has been raised consistently is the failure to index capital gains tax, CGT, thresholds and exemptions over time. When CGT was introduced in 1974, the annual exemption was £500 and if indexed properly would be a lot more than £500 today. That would have been 10% of the average value of a house at the time. Instead, the exemption currently stands at €1,270 and has not been adjusted since 1992, when it was set at £1,000. There is a legitimate concern that taxpayers can end up paying increased tax simply due to inflationary growth in their asset value over time rather than any real gain. Would the Tánaiste consider asking the Department to examine both indexation measures and a targeted reinvestment relief model ahead of the next budget, particularly where proceeds are reinvested into SMEs, innovation and job creation here in Ireland?
Sentiment score: 0.30
We all know about the great work done in our communities by credit unions. In some cases, they are the lender of last resort for some people.
Sentiment score: 0.39
I thank the Minister of State for his response. As I said earlier, credit unions already play an enormously important role in communities, with millions of account holders across Ireland and a very high level of public trust. Following the departure of a number of retail banks from the Irish market, there is clear need for greater competition within the banking sector. One of the most significant opportunities for expansion is in mortgage lending. While credit unions currently account for only 1% of the mortgage market, the sector has ambitious plans to expand substantially in this area, potentially up to €10 billion in mortgage lending over time. Greater competition in that space would be hugely positive for consumers and could help place downward pressure on mortgage rates. Does the Minister of State agree that supporting the responsible expansion of credit union mortgage lending represents a significant opportunity within the Irish banking market?
Sentiment score: 0.71
I thank the Minister of State. Credit unions have also been given greater capacity to grow, as he said, including the ability to lend over 30% of their assets in long-term lending. However, business lending still remains a relatively small part of the overall market, with approximately €190 million currently in SME and business lending. There is clearly potential for further growth in this area, as the Minister of State said, particularly for small businesses and local enterprise seeking relationship-based finance. At the same time, one of the real strengths of the credit union movement is that while credit unions continues to modernise and adopt new technologies, people can still walk into a local branch, sit down face to face and discuss financial matters with someone who understands their circumstances but also, most important, understands the community they come from. Does the Minister of State believe there is scope for further support, collaboration and shared service models within the credit union movement in order that the sector can continue expanding responsible while maintaining that trusted local presence?
Sentiment score: 0.58