The Irish ProShare Association has welcomed the launch of a new business alliance which has pledged to support the use of Employee Ownership Trusts to develop 10,000 employee-owners in Northern Ireland companies by 2029.
IPSA chair Marie Flynn said she is committed to working closely with Employee Ownership Ireland (EOI) on the shared objective of increasing the uptake of employee ownership throughout the island of Ireland.
Ms Flynn was among approximately 100 business leaders who attended the launch of EOI in Belfast, where the benefits of employee ownership as a viable economic model were outlined.
Northern Ireland Economy Minister, Conor Murphy: Employee ownership support
Northern Ireland Minister for the Economy, Conor Murphy, a long-time advocate for EOTs, said: “The Department for the Economy is fully supportive of this business model… all the department’s research to date points to solid evidence that employee ownership is an assured route to turn succession into success, so I wish this new task force well with their endeavours and assure them once again of our full support.”
Mr Murphy, a Sinn Fein politician who is running for election to the Seanad in Dublin, is expected to carry on his advocacy for employee ownership in the South if elected.
In the UK, more than 1,750 employee-owned companies have been created in 10 years since EOT legislation was introduced – making more than 124,000 employees owners in their workplace. Businesses in the North which choose to transition into employee ownership using an EOT can avail of UK tax incentives. These include a CGT exemption on gains made by individual shareholders when selling to an EOT, an inheritance tax exemption, and an income tax exemption on certain bonuses issued to all employees.
No such tax advantages are available for businesses in the Republic, and IPSA has called on the new government to prioritise introducing legislation to incentivise the use Employee Ownership Trusts (EOTs), as was recommended last year by the Indecon Review commissioned by the Department of Finance.
IPSA Chair Marie Flynn: ‘Shared objectives’
IPSA chair Marie Flynn said: “Employee Ownership Trusts are recognised internationally as an effective solution to the succession issues many businesses face, especially those that are family-owned and operated. They have a lot to offer business owners, employees, and the wider economy, and should be embraced and incentivised by the Government here, in the same way as they are in the North.
“IPSA looks forward to working with EOI to help achieve our shared objective of increasing the uptake of employee ownership in business throughout Ireland.”
EOI is supported by the charitable DLD Fund, and its board consists of business leaders who have adopted employee ownership or supported other organisations through the process.
Karen Maguire, Founder of Relinea, has been appointed as chair of EOI and other members include Joan McCoy, Director, White Ink Architects; Ronan Heenan, Director, People 1st , and Anthony McVeigh, CEO, S&W Wholesale; with Employee Ownership Specialists Glen Dott and Andrew Harrison, and Aidan O’Neill, Head of the DLD Fund, who will be advising the board.
EOI chair Karen Maguire said: “The journey to becoming employee owned has been a fantastic experience for everyone at Relinea, so much so that we are now proud ambassadors for EO and passionate about further growing its appeal. The transition has made a positive impact on all aspects of our day-to-day operations but is perhaps most evident in our culture and how we work together.
“Chairing Employee Ownership Ireland offers a great opportunity to showcase the many opportunities afforded to local companies across all sectors through EO, and I’m looking forward to working with my new colleagues to broaden the appeal and really highlight the many social and economic benefits businesses here can tap in to.”
Main image (l-r): Karen Maguire, Northern Ireland Economy Minister Conor Murphy and Aidan O’Neill at the Employee Ownership Ireland launch in Belfast.
