Richard Bruton (Dublin North Central, Fine Gael)
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Question 74: To ask the Minister for Finance the number of employers who claimed double deduction for taking on persons who are long term unemployed in the most recent year for which data is available; the number of employees covered; the cost in aggregate of the relief and the restrictions that apply to qualifying employment and qualifying individuals and if he will consider relaxing these conditions [45752/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The Revenue Job Assist Scheme provides an incentive to encourage both the long-term unemployed to take up employment and employers to employ the long-term unemployed. Additional tax relief is available which is tapered over three years for the unemployed person returning to work. A tapering child allowance in respect of dependent children may also be due. A double wage deduction is available for employers who employ the long term unemployed. The numbers of employers and employees, together with the estimated costs to the Exchequer in relation to employees who participated in the Revenue Job Assist Scheme, are as follows (to the extent that they are available):

* Figures of Exchequer cost are rounded as appropriate.

The scheme is available to persons who have been continuously unemployed for the immediate period of 52 weeks prior to taking up a qualifying job and in receipt of certain payments made by the Department of Social Protection. Time spent on a number of State-aided training courses or schemes, including FÁS courses or Community Employment Schemes, can be taken into account as periods of unemployment. The scheme has also been extended to allow time spent in prison to be treated in the same way as time spent unemployed.

The scheme is available to employers for jobs which are for a minimum of 30 hours per week, and capable of lasting at least 12 months. It does not apply to jobs that are primarily commission based (i.e. over 75% of earnings derived from commission) or already grant aided by other agencies (statutory or otherwise).

The employer will not qualify if the employment results from the previous jobholder being unfairly dismissed; is taken up by the proprietary director of the company or the spouse of such a director; or is in an employment where the employer requires no workforce. In addition, the employer will not qualify for Revenue Job Assist for an employment if any employees were made redundant in the 26 weeks prior to the date of commencement of the new employment. However, the genuine replacement of an existing employee will qualify (e.g. replacing an employee who retires or voluntarily leaves the employment).

These conditions were put in place in order to counter any possible abuse of the scheme and it is difficult to see how they could be relaxed without opening the scheme to the potential for abuse.

It is important to point out that provided their tax affairs are in order, employers who take on employees under the Revenue Job Assist scheme may also qualify for the existing PRSI Exemption Scheme for the first 2 years of employment.