Medical device makers seek tax relief for current R&D

Higher tax credits for research expenditure, additional resources for the Irish Medicines Board (IMB) and a stronger Government response to the fall off in science graduates are proposed in a strategy document released by the State's medical device manufacturers.

The Tánaiste, Ms Harney, yesterday introduced a four-year strategy statement prepared by IBEC-based Irish Medical Devices Association (IMDA). Much of the document details actions required by Government to underpin the success of the sector, which exports more than €3.7 billion worth of products a year. "It has been highly successful and we want to make that success last into the future," IMDA director Ms Sharon Higgins said yesterday.

The sector, which develops and manufactures a wide range of medical equipment, implants and surgical devices, employs 22,000 people, she said. IMDA members accounted for 10 per cent of total manufacturing employment in the Republic.

Increased tax relief for research investment was key to the development strategy, Ms Higgins said. While the 20 per cent tax relief for new R&D investment announced in the Budget was welcome, the provision did not recognise existing investment. The IMDA called for a 3 per cent volume-based tax relief on existing R&D activity.

IMDA also called for better resources for the IMB, which regulates new medical devices and pharmaceuticals.

The science take-up deficit in schools must be addressed "more forcibly" by Government according to the IMDA.