Vol. 533 No. 6
56 Mr. Callely asked the Minister for Finance if his attention has been drawn to concerns over the removal of the cap on the PRSI contribution level; the issues of concern which have been brought to his attention; when he is likely to review and make further changes in this regard; and if he will make a statement on the matter. [7874/01]
I can confirm that various employers and interest groups have voiced their concern regarding the removal of the employer PRSI contribution ceiling and the impact this will have on the business climate.
As I said recently in reply to a question on the same topic, the changes to PRSI must be seen in the wider context of the significant improvements in the overall business climate. While it is appreciated that not all businesses will have benefited from the significant corporation tax reductions achieved in recent years, very many have done so. In addition, a wide range of enterprises will also benefit from the improvements I announced in the budget in the capital allowances for plant and machinery. Furthermore, our employer PRSI system continues to compare very favourably with the EU norm. Overall, therefore, the environment for business continues to be very positive.
I do not propose to alter the decision regarding the removal of the PRSI contribution ceiling, however, I have also stated on many occasions that I intend to press ahead with the reform and simplification of the PRSI and levies system which has become particularly complex over the years. In progressing this agenda in my next budget, I will take into consideration the views expressed by the various employer groups.
