Vol. 433 No. 6
57 Mr. Hogan asked the Minister for Finance if he will give the measures that are aimed at lightening the fiscal and social charges which burden workers, especially in the labour intensive sector, as recently indicated by Commissioner Flynn; if he will give details of the policy changes that might be necessary in order to take advantage of this new policy initiative by the EC; and if he will make a statement on the matter.
The statement by Commissioner Flynn referred to by the Deputy is the Commission Communication "Community-Wide Framework for Employment". This communication listed many areas under which the Commission intended to present analyses and suggestions for co-ordinated action at Community level in order to boost employment growth. One of these was to investigate "the scope for reducing labour costs and increasing employment-intensity, notably by modifying the incidence of taxation systems". The Government awaits with interest the Commission's proposed analyses and suggestions for future co-ordinated action to improve employment growth.
In the meantime the Government is committed to minimising the tax burden and the tax wedge for workers. Substantial progress has been made on both these fronts since 1987 and the Programme for Government contains clear commitments to maintain and, if possible, improve upon these achievements. The improvement of the tax position of the low paid and the standard rate taxpayer — categories which predominate in labour intensive industries — are a particular priority for the Government.
