Vol. 492 No. 1
109 Mr. Gormley asked the Minister for Finance in regard to the Government's commitment to the national anti-poverty strategy, the proposals, if any, his Department has to facilitate a full employment environment through the implementation of taxation measures so directed; and if he will make a statement on the matter. [13678/98]
The national anti-poverty strategy notes that the most effective way of reducing poverty is the creation of jobs. The Government's policy programme, An Action Programme for the Millennium, recognises the need to reduce the burden of personal taxation. The tax measures introduced in this year's budget are consistent with these aims.
The 1998 budget implemented the first stage of significant tax reform that was signalled in An Action Programme for the Millennium. Among the measures introduced were reductions of 2 per cent in both the standard and top rates of income tax, significant increases in personal allowances, a widening of the standard income tax band, an increase in the PRSI-free allowance to £100 per week and an increase in the income threshold for the payment of the employment and training and health levies.
The 1998 budget also introduced a new initiative — Job Assist — which is designed to help the long-term unemployed return to work. This provides a special tax deduction tapered over three years for persons unemployed for one year or more who take up a job, and a double tax deduction for employers employing a previously long-term unemployed person. This can last up to 36 months provided the previously long-term unemployed person is still employed by them.
I am confident the tax measures I introduced, and the measures outlined in An Action Programme for the Millennium, are employment-friendly and will succeed in maintaining the strong employment growth of recent years.
