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Dáil Éireann debate -
Tuesday, 26 Jan 1982

Vol. 332 No. 1

Written Answers. - Unemployment Cost.

316.

asked the Minister for Finance if he will state on the basis of the information available to him from PRSI records the cost to the State of individuals becoming unemployed in 1979, 1980 and 1981 as reflected in (a) loss of direct taxation revenue, (b) loss of indirect taxation revenue and (c) expenditure required by way of unemployment relief from State funds; and the unemployment figures in each of those years.

It is assumed that what the Deputy has in mind is the collective cost of individuals becoming unemployed. The information sought is not available from PRSI records. To the extent that the data sought is available, the sources from which it has been extracted are indicated below.

(a) The main loss in direct taxation would arise on income tax receipts and on pay-related social security contributions. Changes in direct tax revenue from year to year consequent on changes in the level and composition of unemployment are a function of individual earnings before unemployment, the incidence of re-employment and the duration of unemployment. Since taxation statistics are not available which would enable the information requested by the Deputy to be compiled, it is not possible to indicate the loss of direct taxation in the years in question.

(b) Corresponding information on the aggregate loss of indirect taxation revenue arising in respect of unemployed persons is not available; there would of course be some offsetting indirect taxation revenue generated by the expenditure by the unemployed of financial assistance received by them.

(c) Expenditure by way of unemployment relief from State funds.

Unemployment Benefit (including pay-related Benefit)

Unemployment assistance (including smallholders)

Redundancy Fund Payment

£

£

£

1979

51,892,420

66,294,495

3,500,000

1980

88,173,331

81,709,919

5,230,000

1981

146,840,000

(Provisional)

109,840,000

(Provisional)

7,390,000

(Provisional)

Sources: Department of Social Welfare and the Department of Labour.

Unemployment Figures: (average for each year)

Live register

Number of persons on systematic short-time working

1979

89,645

1,310

1980

101,481

4,894

1981

127,873

6,067

Source: Central Statistics Office.

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