Dáil Éireann Debate, Wednesday - 16 January 2013
194. Deputy Sandra McLellan asked the Minister for Finance his views on whether the 2011 jobs initiative has delivered value added jobs in the tourism sector in view of the fact that the cost to the State was €120 million in 2011 and €350 million in a full year; and if he will make a statement on the matter. [52690/12]
View answer195. Deputy Sandra McLellan asked the Minister for Finance if he will provide a breakdown of the number of persons employed full time and part time since the introduction of the jobs initiative which involved the reduction of VAT in services relating to the tourism sector; and if he will make a statement on the matter. [52691/12]
View answer196. Deputy Sandra McLellan asked the Minister for Finance the cost to the State of each job created in the accommodation and food sector as a result of the jobs initiative; and if he will make a statement on the matter. [52692/12]
View answer197. Deputy Sandra McLellan asked the Minister for Finance if he will provide a breakdown in terms of rates of pay for the 6,200 jobs which have been created as a result of the job initiative, May 2011, which involved a reduction in the rate of VAT in goods and services relating to tourism; if he will specify the percentage of these jobs that are at the minimum rate of pay; and if he will make a statement on the matter. [52689/12]
View answerI propose to take Questions Nos. 194 to 197, inclusive, together.
As part of the Jobs Initiative and in an effort to support job creation in the tourism industry, the Government introduced a temporary reduced rate of VAT of 9 per cent. The measure took effect at the start of the third quarter of 2011 and applied mainly to labour-intensive services provided by restaurants and hotels, as well as various entertainment services.
While I am in no doubt that the measures introduced as part of the Jobs Initiative have contributed in no small part to the employment gains we have seen in the accommodation and food sector since the second quarter of 2011, it is not possible to put a precise figure on the level of job creation which is directly attributable to these measures. Clearly factors other than the VAT reduction will impact on employment numbers.
However, research carried out by the Department and published in the Medium-Term Fiscal Statement (November 2012), showed that employment gains in the accommodation and food sector - the most relevant sector in terms of the available data published by the Central Statistics Office - since the rate reduction were contrasted with declines in both economy-wide employment and the wider service sector employment over the same period, suggesting that the measures did have a positive impact on employment growth. In this context I provided assurance to the tourist industry that the 9 per cent rate will continue throughout 2013, as currently legislated for.
While several sectors are likely to be affected by the measure, the impact is likely to have been greatest in the accommodation and food services activities sector. The broad employment figures, as well as those at the sector level, following the reduction in the VAT rate as part of the Jobs Initiative are outlined below. It should be noted that the CSO does not provide a breakdown between full and part-time employment at a sectoral level.
|
Seasonally Adjusted (‘000) |
2011 Q2 |
2011 Q3 |
2011 Q4 |
2012 Q1 |
2012 Q2 |
2012 Q3 |
|
Total Employment |
1,857.6 |
1,831.6 |
1,850.0 |
1,840.7 |
1,832.7 |
1,826.9 |
|
Full-time |
1,420.1 |
1,404.3 |
1,411.8 |
1,404.4 |
1,393.4 |
1,389.2 |
|
Part-time |
438.3 |
434.7 |
434.7 |
430.5 |
441.0 |
446.6 |
|
Accommodation and Food Services |
114.9 |
117.4 |
121.6 |
119.2 |
120.5 |
119.3 |
In relation to rates of pay, unfortunately the CSO does not provide such granular data as to allow analysis of this nature on an individual level. However, on a sectoral basis, looking at the average hourly earnings in the accommodation and food services activities sector may prove informative. These figures, which are not seasonally adjusted, are outlined below.
|
Average Hourly Earnings (€) |
2011 Q2 |
2011 Q3 |
2011 Q4 |
2012 Q1 |
2012 Q2 |
2012 Q3 |
|
Accommodation and Food Services |
12.52 |
12.58 |
12.43 |
12.10 |
12.38 |
12.34 |
