Dáil Éireann Debate, Tuesday - 27 September 2016
146. Deputy Niall Collins asked the Minister for Finance if he has examined incentivising small businesses and employers to take on apprentices in an approved programme via an income tax credit similar to the apprenticeship job creation tax credit scheme currently operating in Canada; the approximate cost of this; and if he will make a statement on the matter. [26440/16]
Amharc ar fhreagraThe Deputy may be aware that the State already provides support to apprentices directly through the National Training Fund (NTF), for which my colleague the Minister for Education and Skills holds responsibility.
The NTF was established by the National Training Fund Act, 2000, as a dedicated fund to support the training of those in employment, and those seeking employment. The Act also provides for the funding of research to provide information on existing and likely future skills requirements of the economy. The Fund is resourced by a levy on employers of 0.7% of reckonable earnings in respect of employees in Class A and Class H employments, which represents approximately 75% of all insured employees. The levy is collected through the PAYE/PRSI system and funds are transferred monthly to the Department of Education and Skills by the Department of Social Protection.
The total expenditure from the NTF in respect of 2016 is estimated at €362 million. Funding includes the pay and non-pay costs of providing Apprenticeship/Training Courses and the cost of training allowances paid to participants on Apprenticeship/Training Courses.
The Deputy may also be aware of the JobsPlus scheme, which replaced the Revenue Job Assist scheme and the Employer Job (PRSI) Exemption Scheme in July 2013. JobsPlus provides a grant to employers who employ individuals who are long-term unemployed. The transtion to a grant-based incentive was made in recognition that tax based incentives are only beneficial where a business has sufficient taxable profits to be able to fully utilise a tax credit or allowance. Often it would not be possible for a business to estimate profits in advance of taking a decision on whether to employ an additional individual and in this manner a grant based system provides more certainty for employers.
