(Limerick East) asked the Minister for Social Welfare, in light of the statement of the Minister for Labour of October, 1989, if he will outline the number of jobs which were created to date as a result of employers' exemption from the PRSI contributions for new employees; the way in which the number was calculated; in respect of the extension of the scheme the basis on which the claimed 5,000 jobs to date were computed; and if he will make a statement on the matter.
Written Answers. - PRSI Exemption Scheme.
13.
The PRSI exemption scheme, details of which I announced on 23 October of this year, provides for the waiving of employers' PRSI contributions in the tax year 1990-91 in respect of additional employees taken on during the period from 23 October 1989 to 28 February 1990. This scheme is part of a wide range of measures to improve job creation which were recently announced by the Government.
The figure of 5,000 additional jobs, to which the Deputy refers, represents the extra number of people expected to take up employment as a result of the current scheme. The operation of similar schemes on two previous occasions suggested that the length of the recruitment period over which the scheme operated influenced the number of employees taken on. The number of additional jobs anticipated to arise from the current scheme reflects the fact that this time the recruitment period will be in excess of four months. In contrast to previous occasions, however, the introduction of the scheme is taking place against a background of substantial economic recovery. In targeting 5,000 extra jobs, it is anticipated that the improved economic climate will afford employers increased job creation opportunities, which the scheme will encourage them to avail of during this period.