The Integration Centre welcomes the introduction of two schemes that can offer a fresh impetus in realising the economic benefits of immigration.
Justice Minister Alan Shatter has stated that immigrants can contribute to the economic recovery of Ireland. This is what my organisation firmly believes and has advocated for creating workable opportunities for immigrants so that they can offer their economic potential.
In our Roadmap to Integration, we argued that the existing business permit scheme is too onerous which was exemplified by the very few number of permits issued by the Department of Justice. The required creation of at least two jobs and up-front investment of €300,000 were high barriers that even most new Irish businesses would have failed to pass.
The newly announced Start-up Entrepreneur Programme sets out more realistic and achievable conditions. It requires financial backing of €75,000 through business angels, venture capital or a financial institution regulated by the Financial Regulator. Personal funding transferred to the State or a grant from a relevant State agency would also be acceptable. This represents a welcome shift in terms of capital requirement and form of finance accepted.
Crucially, applicants will not be required to create employment in this developmental stage of the business. This is important because most new start-ups do not employ people initially. The requirement of innovation will not, in our view, pose great difficulty for immigrants who have shown creativity and the capacity to produce innovative ideas.
While the introduction of the scheme is a positive development, we emphasise that the new regime should not only target immigrants coming in but also those who live here already.
Many immigrants work under their skill set or are unemployed, and without having Stamp 4 residency, which allows them to work without a permit, they do not have the right to set up a business unless they go through the business permit scheme.
Therefore the Start-up Entrepreneurial Programme can provide a promising opening for those with skills and business ideas, many of whim have been work permit or student visa holders or family members with qualifications and experience gained in Ireland. With some support, they are ready to go to start up a new business.
The introduction of the scheme should also be combined with a targeted effort by enterprise support services, both for recruitment and support of aspiring migrant entrepreneurs (not only for this programme but in general).
Neither should not lose the sight of the fact that apart from the oft-quoted Asian economies, Africa is recording impressive year-on-year growth and offers some excellent opportunities for businesses.
The new Immigrant Investment Programme will fill a vacuum in our current immigration system that does not allow for the entry and residence of immigrants for investment purposes. This move can enhance, and to some degree restore, Ireland’s reputation as a destination for foreign investors. The investments are valuable at the time when Ireland needs extra capitals for boosting its economy.
Another important feature of the two new schemes is that they permit successful applicants to be accompanied by their family members. This is recognition of the fact that immigrants are not only economic players but people with families too – an aspect that could also increase the uptake of the scheme and contribute to its success. Often our immigration system lacks that recognition. Previously we pointed that family members of those with long-term residency do not enjoy the same status and therefore the same rights as the principal holder. We hope that the current minister continues on the current path of reforms where the new entrepreneurial schemes are important milestones.
Killian Forde is CEO of The Intergration Centre.
