Róisín Shortall
Question:33 Deputy Róisín Shortall asked the Minister for Social Protection the reason for the delay in finalising full details on the PRSI incentive scheme for employers; and the way he intends to proceed [22002/10]
View answerTuesday, 25 May 2010
Questions (7)
Oral answers (24 contributions)
The employer job, PRSI, incentive scheme will be commenced in June and will be administered by the Department of Social Protection. Regulation or secondary legislation pertaining to the scheme is in the final stages of preparation, as are details of scheme administration.
The scheme will run for the calendar year 2010 only. However, any qualifying employment created in 2010 will be eligible for the scheme, which will be structured so that employment created prior to the launch can participate for 12 months forward from the time of launch and employment created later in the year will participate for 12 months to the corresponding date in 2011.
To qualify for the scheme the employment will have to constitute an increase in the employer's employed workforce above that applying in the three month period immediately prior to the date of commencement of the additional employee, who will have to have been on the live register for six months or more. In addition, participation in the scheme will be limited to 5% of the employer's existing workforce or five posts, whichever is the greater. The employer will also be required to declare when applying that the employment will be for, on average, 35 hours or more per week. These conditions are designed to prevent displacement from existing full time and part-time positions.
The scheme has not been launched to date as the regulation and administrative arrangements are being put in place. These arrangements are now close to completion and I expect to be launching the scheme in the coming weeks.
In this context it is important to note that jobs created prior to the launch will still be able to benefit from the scheme. For example, in the case of a qualifying employment created prior to the launch of the scheme standard employee and employer PRSI will be paid but, following approval for the scheme, the employer will benefit from a PRSI exemption for 12 months from their date of approval. Rebates of PRSI will not be a feature of the scheme.
The Minister's response, and his performance regarding this issue, is not good enough. This scheme was announced in the budget in December and here we are, five months into the year, and not a single job has been provided under this scheme. Over a week ago I asked the Minister's Department for details of this scheme, what had been done to promote it and how it would operate and it has still to come back to me with any response on that. Can the Minister tell us the reason this scheme was announced in December and five months have already been lost in regard to setting it up? We have more than 430,000 people on the live register. It would seem the Government has been so obsessed with the whole issue regarding the banks it has taken its eye off the ball in terms of job protection and job creation. Why is it that nothing has happened in the past five months regarding this scheme?
I have said that I hope we will have the scheme up and running within the next month. As I have already explained, anybody who has created employment within the terms of the scheme will be able to apply——
They do not know about it. The Minister did not tell them about it.
I am saying that people who have already created employment will be able to apply and they will get the exemption from the date of the launch of the scheme. I am anxious to get this scheme going and I agree with the Deputy that it is urgent. I have asked my Department to ensure that we progress the scheme as quickly as we can and I hope that we will have it up and running within a month from now. I will do my best to ensure that.
It is all very well for the Minister to say it is urgent but his actions and those of his predecessors would indicate that no urgency is being attached to the issue of jobs within the Government. Funding has been provided for this scheme since last December. There is the potential for 12,000 jobs to be created yet the Minister has not taken any action to set up or promote this scheme. It is fine for the Minister to say that employers can avail of it in retrospect but he has done nothing to promote this scheme. There is no process in place for making application. There has been no promotion of it. I want the Minister to tell us how an employer should go about applying for this scheme. What are the rules that will guard against job displacement and so-called deadweight? Has the Minister discussed those issues with employer groups, and will he give consideration to involving Enterprise Ireland in overseeing the scheme to avoid the possibility of job displacement?
I agree with the Deputy about the displacement and deadweight. That was one of the reasons for the delay because the officials in my Department had to ensure that when they were drawing up the regulations we would not create either displacement or deadweight. Deadweight was a problem with a previous scheme, and we are taking steps to avoid that.
What are those steps?
The steps are being written into the regulations. I will not announce the scheme today but——
Does the Minister know what they are?
I will not announce the scheme today.
It is five months since it was announced and there is still no detail available.
Allow the Minister to reply.
I agree that this scheme is a priority and I have worked hard to make sure it comes forward. I hope to have the scheme announced. I have to examine all the regulations. I will then sign the order and bring the scheme into place. I accept it would have been better if that could have been done faster but if we did not do the job thoroughly and if there were loopholes in the scheme that were open to abuse, that also would not——
Did the Minister not think about that before he announced it in December?
For goodness sake, 12,000 people could be benefiting from this scheme.
We must move on to the next question. We will hear a brief final reply from the Minister.
The Minister's lethargy means that not a single job has been created through it.
Please allow the Minister give a brief final comment.
As I said, we will have the scheme up and running in a month. It will run to the end of the year. We can then examine the scheme to see how it is working. It is important that the scheme——
That will be seven months, therefore, instead of 12 months.
No. As we said already, it will be backdated.
The Minister did not tell employers about it. It appears there is no sense of urgency about job creation.