Vol. 463 No. 3
84 Mr. D. Ahern asked the Minister for Finance the cost to the State of individuals becoming unemployed in 1995 as reflected in loss of direct taxation revenue, loss of indirect taxation revenue and expenditure required by way of unemployment relief from State funds; the overall employment figures in 1995; and if he will make a statement on the matter. [6533/96]
Unemployment as measured by the annual Labour Force Survey, the only reliable measure of employment and unemployment, fell from 218,000 to 192,000 between April 1994 and April 1995, while employment increased from 1,182,000 to 1,231,000 in the same period. Average employment in 1995 is estimated at 1,238,000; up from 1,193,000 in 1994.
The yield from direct taxation including income tax, corporation tax, income levies and training and employment levies, increased from £5,195 million in 1994 to £5,432 million (4.6 per cent) in 1995 reflecting the increase in employment in 1995.
The average number of persons on the Live Register fell from 282,000 in 1994 to 278,000 in 1995. The total paid out by the Department of Social Welfare in unemployment benefit and unemployment assistance also fell, from £1,015 million to £1,001 million in the same period.
In view of data constraints, it is not possible to give a precise estimate of the amount of taxation, if any, which would have been paid by persons who became unemployed in 1995, or the cost of unemployment compensation paid to persons who came onto the Live Register during that year. Therefore the specific information sought by the Deputy is not available.
Overall, the Government's macroeconomic policies, which are designed to promote low inflation and low interest rates, to which wage moderation has contributed, have underpinned strong growth accompanied by increased employment and reduced unemployment.
