Dáil Éireann díospóireacht -
Tuesday, 13 Jun 1995

Vol. 454 No. 3

Written Answers. - Employers' PRSI Exemption Scheme.

Tom Moffatt

Ceist:

48 Dr. Moffatt asked the Minister for Social Welfare the cost incurred by his Department through the operation of the employers' PRSI exemption scheme which exempts employers from their PRSI contributions for a two-year period where they fill a new job from the live register; and the up-take of this scheme since its inception. [10638/95]

Minister for Social Welfare (Proinsias De Rossa)

The employers PRSI exemption scheme provides an incentive to employers to create full-time job opportunities for unemployed people taken on between specified recruitment dates. Subject to certain criteria, employers are exempted from paying the employers share of the PRSI contribution in respect of new employees for up to two years from the date of recruitment.

Details on the numbers of new employees approved under the scheme since its inception in 1986 are as follows:

Period of Scheme	New Employees Approved
86-87	2,900
87-88	956
90-91	1,329
93-94 and 94-95	4,698
94-95 and 95-96	3,239
95-96 and 96-97	336 (To-date)
Total approved	13,458

Information on the amount of savings to employers is not available. However, Departmental records for the 1993-94 contribution year would indicate that savings of an estimated £2.13 million were made by employers under the scheme for that contribution year. Similar information in respect of 1994-95 will be available later in the year when the contribution details for that year have been fully updated in my Department.

The current scheme has provision for the exemption to be granted to persons under 23 years taking up employment for the first time regardless of whether they were signing on the live register or not prior to taking up employment. In addition to this provision, the exemption will be in respect of two full years from the date of recruitment instead of the two nominated tax years under the previous schemes.

I am confident that these measures will make a worthwhile contribution to the Government's wide-ranging efforts to combat unemployment.