John Perry
Question:94 Mr. Perry asked the Minister for Finance his views on the decision to remove the ceiling on employers' PRSI and its impact on employment. [23306/01]
Written Answers. - PRSI Contributions.
I set out in my budget speech the background to the abolition of the PRSI contribution ceiling for employers. As I said at that time, the initiative had to be seen in the light of the substantial reductions in business taxes in the 2001, and previous budgets. In addition, I also announced in the budget a significant change in the capital allowances regime for plant and machinery which has substantially benefited a wide range of enterprises. Moreover, our employer PRSI system continues to compare very favourably with the EU norm. I am not aware that the abolition has had any effect on employment from the data which I have seen.