Dáil Éireann debate -
Thursday, 6 May 1993

Vol. 430 No. 4

Written Answers. - Clothing and Footwear Sector.

Pat Cox

Question:

99 Mr. Cox asked the Minister for Social Welfare the amount it will cost to halve PRSI for the clothing and footwear sector in Ireland; if he will give details of this by sector, distinguishing, where possible, between the manufacturing and retailing in the data.

Pat Cox

Question:

100 Mr. Cox asked the Minister for Social Welfare the amount it would cost for each 1 per cent reduction in PRSI to the clothing and footwear sectors in Ireland; if he will give details of the sector, distinguishing, where possible, between the manufacturing and retailing function in the data.

Minister for Social Welfare (Dr. Woods):

It is proposed to take Questions Nos. 99 and 100 together.

The limited data available on employees and earnings in various sectors does not allow precise figures to be given in relation to the matter raised in the question. It is tentatively estimated that each percentage point reduction in PRSI for the clothing and footwear sector would cost between £1 million and £2 million annually. Having of employers PRSI for these sectors would cost between £7.5 million and £13 million. Halving of all PRSI (that is both employees' and employers' contributions, and including the health contribution and levies) would cost between £12 million and £21 million.

Social insurance contributions amount to over £1.5 billion annually, and meet a substantial part of the cost of a wide range of benefits, including pensions, for the workers covered. Any changes to this system would need to take account of the need for a secure source of funding for social welfare benefits, and the need to ensure that workers concerned retain adequate levels of social insurance cover.