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Job Initiatives

Dáil Éireann Debate, Tuesday - 18 September 2012

Tuesday, 18 September 2012

Ceisteanna (616)

Thomas P. Broughan

Ceist:

616. Deputy Thomas P. Broughan asked the Minister for Jobs, Enterprise and Innovation if he has carried out a study of so-called mini-jobs policy that is operational in Germany and under consideration in the UK; his views on such mini-jobs policies; and if he will make a statement on the matter. [38590/12]

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Freagraí scríofa

I am aware that the UK is considering a “mini-jobs” model, similar to that which has been in operation in Germany for the past number of years, which allows people to earn up to a certain limit each month without paying tax or social insurance. There are differing views on the merits of such a model, including the prospect of full-time jobs being split into several “mini-jobs” to reduce or avoid income tax.

The Irish Government’s objective is to create a business environment which supports the creation of new jobs and the retention of existing ones. Through the Jobs Initiative, the Action Plan for Jobs and Pathways to Work, the Government has introduced a range of measures to achieve this objective.

For example, under the Jobs Initiative, the Government reduced VAT from 13.5% to 9% on a range of services in labour-intensive sectors. It also halved employers’ PRSI on payroll costs of up to €356 per week. These measures helped to support an increase in employment in the hospitality sector in the first quarter of 2102, as reported in the Quarterly National Household Survey published by the Central Statistics Office on 7 June.

The Action Plan for Jobs contains 270 measures for delivery across all Government Departments and 36 Agencies to support job creation. These include simplification of the Employers’ PRSI Exemption scheme and the improved promotion of Revenue’s Job Assist scheme, both of which provide financial benefits to employers who take on people from the Live Register.

Pathways to Work also provides a range of measures to support individuals to move from the Live Register into employment, including Springboard skills conversion courses and the JobBridge internship programme.

The Government will continue to deliver and build on these initiatives in preparing the 2013 Action Plan for Jobs, and will be open to exploring further ideas which can support the creation of jobs in the economy.

In the meantime, details of a range of practical supports available to business to help them start up, grow and create jobs is available on my Department’s website, www.djei.ie.

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