Dáil Éireann Debate, Tuesday - 26 November 2013
314. Deputy Lucinda Creighton asked the Minister for Jobs, Enterprise and Innovation his views on whether the change to maternity leave, sick pay, and return to higher rate of PRSI for minimum wage workers will inhibit job creation; and if he will make a statement on the matter. [50618/13]
View answerPolicy responsibility for maternity benefit, illness benefit and PRSI is a matter for the Minster for Social Protection. Changes to these schemes were announced as part of Budget 2014. The change to the illness benefit scheme means that the number of days a person must wait before receiving illness benefit from the Department of Social Protection is being increased from three days to six days. The minimum and maximum rates of maternity benefit are being standardised at €230 per week for new applicants. In general, the changes being introduced to the maternity benefit and illness benefit schemes will not directly impose costs on business, as it is employees themselves who have the entitlement to the benefits.
The halving of employer’s PRSI in respect of staff earning up to €356 per week was introduced on a temporary basis in the Government’s jobs initiative of 2011. It was intended to stimulate job creation in a very difficult operating environment for business and was scheduled to terminate at the end of this year. We are now seeing signs of an upturn in the economy, with almost 5,000 jobs per month being created in the private sector.
Social protection expenditure remains the largest single area of public spending, accounting for almost 40% of gross current expenditure. As the Minister for Public Expenditure and Reform pointed out in his budget speech, this area of expenditure cannot be excluded from savings in the context of the need to balance public expenditure.
The changes announced represent small adjustments that were considered appropriate to contribute to the social welfare savings that have to be found in 2014. The changes must also be seen in the context of a reforming Budget that included a €500 million stimulus package to support enterprise growth and job creation.
The pro-jobs measures in Budget 2014 will allow us to continue to deliver the Action Plan for Jobs process. From my own Department’s perspective, Enterprise Ireland and IDA Ireland are targeting the creation of a total of 24,000 gross new jobs during 2014. This will result in the creation of more than 20,000 additional jobs elsewhere in the economy through supply chains and support services. The CEBs – which will become the new Local Enterprise Offices in 2014 - are expected to support the creation of a further 4,500 jobs in 2014.
