asked the Minister for Industry and Commerce the initiatives he proposes to take following the publication of manufacturing firms' reason for not employing more people in the ESRI/Department of Labour Survey, in Employers' Perceptions of the Effect of Labour Legislation (August, 1986).
Written Answers. - Employment Protection Legislation.
42.
The objective of the report commissioned by the Department of Labour entitled Employers' Perceptions of the Effect of Labour Legislation was to assess the extent to which employers believed that employment protection legislation deters them from increasing their workforce and to determine the relative importance of such legislation in the broader spectrum of problems encountered by Irish business today.
The outcome of the survey suggested that, as far as taking on extra employees was concerned, the dampening effects of labour legislation was quite small and that firms were much more concerned about overall issues such as uncertainty of demand and the need to see reductions in income tax and social security contributions.
These conclusions are generally supported by a survey of business attitudes undertaken for the Review of Industrial Performance 1986, published recently by my Department, which concluded that the most important contribution which Government can make to industry was to impove the tax environment and control the cost of public utilities.
The Government's basic strategy towards industry is to boost investment and confidence through addressing the critical imbalance in the public finances which is at the root of such problems as unemployment, high interest rates and high levels of taxation. A better business environment is being encouraged, development policies are being promoted and the cost environment is being addressed.