Vol. 410 No. 3
25 Mr. McCartan asked the Minister for Finance whether an interdepartmental committee has been established to assess the impact of tax and PRSI rates on employment creation; if a report has been received from the committee; if it is intended to publish the report; and if he will make a statement on the matter.
I presume the Deputy is referring to the interdepartmental study which I announced in my budget of 31 January 1990. The working group examined, primarily, the relationship between PRSI and income tax and their combined impact on the lower paid. They also considered the impact of possible PRSI and income tax changes on employment.
The group reported at end-October 1990. Their report was part of the background to consideration by the Government of options for the 1991 budget. I have no plans to publish the report.
The group's conclusions were based, inter alia, on available economic research and on an examination of a variety of mainly revenue neutral changes. As regards employment, the group's main findings essentially were that possible changes in employee PRSI and in income tax affecting the lower paid would have little or no impact on employment and that the effect on employment of possible changes in employers' PRSI would be uncertain and probably small. It is important to bear in mind that PRSI rates in Ireland, for both employers and employees, are low by European Community standards.
