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Dáil
‹ Leaders’ Questions

PRSI employment incentive scheme

Summary

Kenny urged implementation of the €36 million PRSI holiday and restoration of enterprise-support funding to create jobs. The Taoiseach said the scheme was being implemented through an imminent social welfare Bill and would cover qualifying employment created during the year.

The Taoiseach can add the €20 billion he put into the banks to all the figures he mentioned. I asked why the €100 million enterprise stabilisation fund was cut by €22 million when it was designed specifically to get employers and businesses that were trading over this economic crisis. In both 2008 and 2009 Deputies Bruton and Varadkar, on behalf of the Fine Gael Party, put forward a series of measures to protect employment, to give incentives to employers and to give encouragement to employees. A number of them related to PRSI. In his Budget Statement last December, the Minister for Finance committed to leaving aside €36 million for a PRSI holiday for employers that take on new employees who have been six months on the dole in full-time jobs, which would give hope, confidence and the opportunity to contribute to our society and our economy to those involved.

The Department of Social and Family Affairs at the time issued a statement that the scheme would be implemented in a few weeks and it set out the conditions that would apply such as no substitute jobs, which I accept, and so on. However, the central issue, about which I am sure the Taoiseach is acutely aware, is the right to have a job. I support this fund because it was proposed initially by the Fine Gael Party in both 2008 and 2009.

Comment on this
Seamus Kirk An Ceann Comhairle Fianna Fáil

Can we have a question?

Comment on this

In the interests of taking some of the 430,000 people on the live register off the dole and encouraging employers to avail of this fund, which the Minister for Finance announced in this Budget Statement last December, will the Taoiseach give a commitment that inside one month he will stand by the Government's word and ensure the €36 million PRSI holiday for employers who take on new employees will be up and running? I support the Taoiseach on this and I would like the scheme to be realised and to be up and running halfway through the year. Will he see to it that the Government will implement this budget proposal?

Comment on this

That decision is in the process of being implemented. We have agreed the heads of a social welfare Bill, which will be announced shortly. Full details of the employer job incentive scheme relating to PRSI, including the application procedure, will be administered by the Department of Social Protection. The scheme will run for the calendar year and any qualifying employment created this year will be eligible for the scheme, which will be structured in order that employment created prior to its launch can participate for 12 months from the time of launch and employment created later in the year can participate for 12 months to the corresponding date the following year. For example, in the case of qualifying employment created prior to the launch of the scheme, standard employee and employer PRSI will be paid but, following approval for the scheme, the employer will benefit from a PRSI exemption for 12 months from the date of approval. PRSI rebates will not be a feature of the scheme. Account will be given for the creation of employment in 2010, as promised.

Comment on this

When will it be launched? Will it be inside a month?

Comment on this

The Government has made that decision. I expect the social welfare Bill to be published imminently.

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