Budget's increase of R&D tax credits 'disappointing'

Joe Bollard of Ernst & Young has said that the "limited" extension of R&D tax credits in Brian Cowen's Budget today "is truly disappointing".

Mr Bollard said: "As Ireland is no longer a low-cost location, the minister needed to take a fresh look at how we can attract and retain R&D intensive activity in Ireland.

"The current regime does very little in attracting R&D investment into Ireland and the proposed changes will only have limited affect.

"We need to look at what our European neighbours have done in this area through allowing tax deductions for purchased goodwill and intellectual property."