Ms Patricia Callan:

No, and that is why we argue in particular for differential rates when people are heading into longer-term unemployment. This is relevant for youth unemployment as well because there must be a particular incentive early on.

Employers need to invest a good deal in training people and giving them experience. It is a real cost for an employer to have someone in the door for the first three or six months. There should be a direct subsidy rather than a tax provision. The tax system is complicated and most small businesses do not really get it. While employer PRSI incentives are lovely and we like them and so on, if one offered a company €3,000 or €5,000 to take someone in, it is a good deal more straightforward.