[30.08.2007 first posted on silicon republic]
The Irish Software Association (ISA) has expressed concerns about the conditions attached by the European Commission to the extension of Ireland’s Business Expansion Scheme (BES) and Seed Capital Scheme (SCS).

The Commission yesterday approved Ireland’s extension of the schemes, subject to certain criteria: medium-sized enterprises only qualify if they are located in assisted areas (all counties except Dublin, Meath, Kildare and Wicklow – companies in these counties qualify where they are in seed or start-up phase only); and companies that raise finance under the BES and/or the SCS will have the level of other State aids affected (with the exception of grants for research and development).
ISA Chairman Pat Brazel criticised the conditions that the Commission attached to the approval of the schemes.
“Companies that raise funds under either the BES or SCS will see the amount offset against most other State aid that they would otherwise be entitled to. The purpose of the BES is to inject much needed funding to early-stage companies and is part of a range of supports available to companies. If Commission conditions mean companies cannot avail fully of other State supports, such as employment and training assistance, this will restrict their development,” he said.
The maximum aid levels will be reduced by 50pc for companies located in non-assisted areas (Dublin, Kildare, Meath and Wicklow) and by 20pc for companies located in assisted areas (other 22 counties).
On a whole, the ISA welcomed the Commission’s approval to expand the BES and SCS. “There are many small firms, particularly in the software and technology sector, that depend on BES investment to survive the difficult start-up and development phase. The approval of the extension and expansion of the BES and SCS will give a boost to the indigenous technology industry, which is a highly productive and knowledge intensive sector,” said Brazel.
By Niall Byrne