The Minister for Justice, Equality & Defence, Mr. Alan Shatter, TD, today announced that he had secured Government approval for the introduction of two major new immigration initiatives aimed at facilitating (non EEA)migrant entrepreneurs and investors who, in return for permission to reside in the State, are prepared to invest here for the purpose of saving or creating jobs.
The new initiatives will be known as;
§ The Immigrant Investor Programme
§ The Start-up Entrepreneur Programme
Announcing the programmes the Minister said "I am grateful for the support of my Cabinet colleagues in devising these important initiatives. All of us in our different Departments are committed to doing what we can to help Ireland’s economic recovery and this represents a further instalment in my Department’s efforts in this respect, following on from the Visa Waiver Programme introduced last year".
The Immigrant Investor Programme:
Approved participants in the Investor Programmes and their immediate family members will be allowed enter the State on multi-entry visas and to remain here for a defined period. Ordinarily this will be for a period of 5 years - reviewable after 2 years. The sort of investments envisaged will include a specially created low interest Government Bond, capital investment in an Irish business – which may need it for the protection or creation of jobs, or in some cases the purchase of property – including that held by NAMA. Endowments in the cultural, sporting educational or health areas will also be considered.
The level and duration of financial commitment required from the Investor will depend on the nature of the investment but will generally range from €400,000 for endowment-related investments to €2 million in the new Immigrant Investor low-interest bearing Government Bond to be devised by NTMA in conjunction with the Immigration authorities. The funds in this Bond will be held by NTMA and, as is the case with other similar financial products, they will be available for the benefit of Ireland.
The level of investment in business entities where jobs are being created or saved will generally be €1 million and the Department will be guided by and reliant upon the advice and expertise of IDA Ireland and Enterprise Ireland in assessing individual proposals.
The Start-up Entrepreneur Programme:
Turning to the Start-up Entrepreneur Programme, the Minister said "We need to do more to tap into the entrepreneurial potential that exists among migrants". The Department of Justice has operated a business permission scheme for a number of years, but the conditions were considered to be too onerous. The Minister continued, "Our existing business permission lacked the sort of flexibility needed to attract start-ups. We have been looking at this issue for a while and have had very useful input from State Agencies and other Government Departments in drawing up the proposals".
The Start-up Entrepreneur Programme provides that migrants with a good business idea in the innovation economy and funding of €70k can be given residency in this State for the purposes of developing their business (this compares with a previous minimum funding requirement of €300k). No initial job creation targets will be set as it is recognised that such businesses can take some time to get off the ground. Projects will be evaluated by an Evaluation Committee with State Agencies playing a key role in "picking winners" or those who demonstrate a good idea or the potential to be a winner.
All applications for both programmes will be considered by an Evaluation Committee comprised of representatives of IDA Ireland, Enterprise Ireland, the following Government Departments; Finance; Jobs, Enterprise and Innovation; Foreign Affairs and Trade; Health; other Government Departments as the need arises and the Minister’s own Department of Justice. The input of the State Agencies and other Government Departments – bringing with them their economic expertise - will be crucial in deciding which applications are recommended for approval. Applicants must be of good character and be able to support themselves while in Ireland. Applicants will be required to attest to their bona fides on affidavit sworn here. False, misleading or incomplete information submitted can lead to removal from the State as well as revocation of the immigration permissions. An Annual Report will be published on the operation of the Programmes and they will also be reviewed to ensure that they continue to meet their objectives. The Programmes offer no special access to Irish citizenship. Beneficiaries will be subject to the same rules as other migrants in that regard – i.e. generally residence in the State for at least 5 years.
Minister Shatter stated "These two initiatives are about protecting existing jobs and creating new opportunities. Ireland clearly needs investment and there is considerable potential out there. However we don’t have the field to ourselves. We are in competition with other countries who are already operating in this space". This was a reference to the existence of investor schemes in the US, UK, Canada, Australia and New Zealand amongst others.
Next Steps
Formal rules and official launch
The Minister indicated that he hoped to have the new schemes formally launched by mid March when the detailed rules governing the Programmes which are being worked upon by officials in the Department of Justice will be published. He said no new legislation is required as the pre-existing legislative powers of Ministerial discretion are sufficient to enable the programmes to operate in a flexible manner.
The Minister was not prepared to offer a projection as regards the likely uptake. "I am not going to make any predictions on this", he said. "it would be unwise to do so in any case. We are in new territory so let’s wait and see. The relevant State Agencies fully support these initiatives; they are about jobs – whether creating new opportunities or saving existing jobs and my Department looks forward to working closely with them in a positive "Team Ireland" approach in operating these Programmes"
Minister Shatter concluded "Immigration systems are often associated with border control but that is only one part of the picture. Immigration systems can assist in job creation and we need to think of migrants not just as workers but as people who can create employment for others".