BUDGET 2020:
Reaction from Cork-based and Irish industry leaders
Paul Prendergast, CEO & Co-Founder, Blink – one of the fastest-growing Travel Insurance InsurTechs in the world, which was founded in Cork in 2016. Paul is a serial entrepreneur and has co-founded a number of companies over the past 20 years, including Inhance Technology, Wired to the World, and Blink:
“While there’s not a whole lot that can be taken from today – we do welcome, however small, the show of support for Ireland’s self-employed by way of the increase in the earned income tax credit.
“This group make up over 11% of earners in Ireland and are responsible for a substantial amount of employment generated in cities and town throughout the country, but for some reason, there is a big difference between how they and their PAYE counterparts are treated for taxation purposes. The impact of this is that those who want to step up and take a chance on their business and their passion are actually dissuaded from doing so.
“We need to support those who are brave enough to try go it alone – we need tax parity at the very least, but we also need more supports and incentives.
“Two stand outs for me were the R&D credit being raised to 30%, and the fact that €10 m of the Department of Business’s €1bn, is earmarked for disruptive technologies – this way of thinking is exactly where we need to be – promoting the type of businesses in Ireland that can grow and scale up quickly and become fast contributes to the economy.”
Joey Sheahan, Head of Credit at mortgage brokers, MyMortgages.ie in Cork:
“Finally, we get the certainty that the market and that developers need, and more importantly, that thousands of FTBs through the country have so desperately been waiting for. Given that this scheme has helped 15,000 FTBs since its introduction, there can be no doubting it’s importance to and influence on the Irish property market at the moment.
“While the 2020 extension is welcome, there will be many people who will be disappointed that it was not expanded to include certain second time buyers who need to move due to growing family numbers, changing personal circumstances etc., but who are stuck in a rut given current market restraints.
“Ultimately, today’s announcement will bring some balance in mortgage market activity over the next 12- 24 months – people now know where they stand and can plan accordingly. With property prices increases slowing, we would hope that 2020 will be a more hospitable place for FTBs at least.”
Aaron Willis, General Manager at property developers GPD in Cork:
“With over €11 billion committed to the Department of Education and Skills in 2020, we would hope a significant allocation will be given to apprenticeship training programmes and the promotion of our young people into trades and professions like engineering and architecture.
“On the positive side, the extension of the HTB scheme for FTBs will give some much needed surety to developers, which should bode well for more houses coming on stream in 2020 and beyond.
“There have been various figures thrown abou, but the scheme has contributed to anywhere from 40 – 80% of FTB sales since its introduction so it was an absolute no-brainer that it should be retained.”
Eoghan O’Mahony, Senior Cluster Manager, it@cork a leading not-for-profit independent business organisation, representing the interests of the IT industry in Ireland. It currently represents over 220-member companies with over 30,000 employees in the south west region of Ireland:
“As expected, Budget 2020 was top, tailed and packaged with the overhang of Brexit and there was simply no getting away from the fact that we are very much impeded from making any real fiscal and economic moves until we get some sense of certainty on the UK’s departure from the EU.
“In light of these constraints, I think there have been moves where possible to stimulate our start-up and SME industries – of which tech plays a huge part.
“The €10 million in funds for disruptive technologies, will make a total of €30 million available for cofounded enterprise and research projects, and this will be absolutely integral to activity in tech and other sectors over the next 12 months.
“It’s regrettable that there was no change to the entrepreneurial relief available, though encouraging that the Minister did say it is and will remain under review. Whatever the future holds, we need new business and new blood in all industries and Government spending needs to reflect the importance of this.
“From a tech industry perspective, a notable positive from today includes the extension of the special assignee relief programme which allows multinationals relocate individuals from abroad to Ireland.”
Jonathan Hehir, Managing Director of the CFM Group, which is responsible for some of Ireland’s leading online insurance broking brands Insuremyhouse.ie, Insuremycars.ie, Insuremyholiday.ie, Insuremyvan.ie, Insuremyshop.ie and Coverinaclick.ie:
“The Minister’s moves away from petrol & diesel cars ,and towards electric and hybrid vehicles was loud and clear today. While there’s widespread agreement that it is a good idea for people to go electric for a variety of reasons, this needs to be facilitated and it needs to be workable for households all over the country.
“The additional investment earmarked for charging points is the very least that is needed if we expect people to make the switch.
“From a financial perspective, although the initial outlay can be considered expensive – overall, due to running costs, insurance costs (if you can secure the discounts that are out there) drivers can make significant savings by going electric or hybrid.
“In terms wider Budget issues, the shadow cast by Brexit was large and ominous today. The insurance industry will be particularly sensitive to the Oct 31st outcome and while there are definitely challenging times ahead, there is a possibility that, in the insurance sector at least, there could be some element of a silver lining, with some UK-based insurers possibly looking to Ireland as a new home. If this happens, not only will it bring FDI to the country, but it will increase competition in the market which could only mean good news in the way of better value for consumers.”
Joanna Murphy, CEO of Taxback.com – one the most successful global brands to come out of Ireland:
“There were no real surprises – good or bad – today. Most families, however, are not going to see much more, if anything, in their household budget once these changes take effect.
“We do very much welcome the increase in the home carer tax credit – and I hope more and more people can benefit from this in the coming year. Our own experience suggests that this credit is underutilised and that there are many families throughout the country who are entitled to it, but who have never applied for it because they simply don’t know about it.
“The much-maligned USC is still in place at its current level, and although when it was introduced initially it was hoped it would be temporary, it doesn’t look like it’s going anywhere in the foreseeable future.
“This year has seen the Minister take another step to remedying the anomaly between the income tax paid by the self-employed and the PAYE worker in this country, and while the increase of the earned income tax credit for the self-employed, to €1500, falls short of parity with PAYE workers, it is certainly a step in the right direction for the 000s of job-creating business owners in Ireland.”