Vol. 515 No. 4
95 Mr. R. Bruton asked the Minister for Finance if he has considered modifications to the rate of employers' PRSI to help employers in clothing and textiles to adjust to the higher wage costs envisaged under the partnership agreement in view of the very competitive nature of this sector. [6420/00]
I refer the Deputy to Parliamentary Question No. 169 from Deputy Ring on this same topic which I answered yesterday. The position is again set out below.
In the context of establishing a new national training fund, I announced in budget 2000 a reduction of 0.7% in employer class A and H contribution rates from April next. I have no further plans to change employer contribution rates for the year 2000-01.
Since 1994, a reduced rate of employers' PRSI has applied in respect of lower earning employees. From 6 April next, a rate of 7.8% as compared to the standard rate of 11.3%, will apply subject to an earnings limit of £14,560 per annum. This lower rate will apply to over half of employees insurable at class A, full rate, PRSI, including those in the clothing and textile sector.
In addition, the establishment from April of this year of a national training fund will have an important and beneficial impact in terms of maintaining national competitiveness. Moreover, there will be no additional financial imposition on employers as the introduction of a national training levy payable in respect of all class A and H employees at a rate of 0.7% on the same income base as Employers PRSI, is being matched by the above mentioned reduction of 0.7% in the current employers' PRSI contribution rates.
Finally, it might be noted that there are several schemes of support for both employers and employees, to encourage the employment of long-term unemployed from the live register. Such schemes, including revenue job assist and the back to work allowance scheme, provide additional allowances and PRSI-free holidays to employers to further support the reintegration of the long-term unemployed into the labour market, an increasingly important objective given the supply constraints evident in some parts of the labour market.
