I wish to ask the Taoiseach some questions about chapters 8 and 9 of the White Paper. Chapter 8 concerns turning growth into jobs and chapter 9 concerns statutory charges on labour. Does the Taoiseach agree with the conclusions on chapter 8 of the White Paper that financial, administrative and legal burdens imposed by Governments tend to fall most heavily on smaller and medium sized firms and that it must be a priority for this Government and the Community as a whole to reduce those burdens?

In regard to chapter 9 which deals with charges imposed by Government on jobs and employment, is the Taoiseach aware of the contents of Table 2 of the chapter which show that the rate of increase over the last 20 years in income tax and PRSI charges on labour in Ireland has been twice the rate of the average of the European Union and that this imposition of PRSI and income tax charges on employment is one of the contributing factors in our high level of unemployment?

The Deputy is fully aware that the Government set up the small business task force precisely to focus on the issues he has raised. In the most recent budget we took action along lines conducive to helping the small to medium sized business sector — to remove some of the obstacles and help that sector create jobs. It is an area that can be most successful in producing jobs as many other countries have found out also.

Of course we would all like social charges on labour to be as low as possible. In that regard we are at the lower end of the scale in comparison with our partners in Europe. However, the more competitive we can become the better and that is the direction in which we are working.

Is the Taoiseach aware that whereas 20 years ago Irish charges on labour were half the European average, they have now almost reached it? Is he aware of the recommendation in the report which states that in any efforts to reduce charges on labour, changes must be simple to be successful? Detailed proposals such as those the Government brought forward to provide a reduction in PRSI for those who promise to employ a person at less than £173 per week — they do not benefit if they pay £174 per week — are the complexities which are an obstacle to take-up and have been condemned by the Commission in the White Paper. This is an error by the Government in its efforts to reduce the costs of employing people.

There are many examples of variety of rates, for instance, in the UK. The fact that we moved in the last budget to make it more attractive and less expensive at the lower end of the scale to employ people is a welcome start in that direction. The social costs in terms of Ireland's position and that in other European countries are clear. Other countries have much higher social charges than ours, but that does not mean we should not become as competitive as we can in every way possible, and that is exactly what the Government strategy is about.