Oireachtas Joint and Select Committees

Tuesday, 2 October 2012

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

Employment and Youth Unemployment Issues and Pre-Budget Submissions: Discussion with IBEC and SFA

3:25 pm

Photo of Damien EnglishDamien English (Meath West, Fine Gael) | Oireachtas source

Ms Callan touched on the minimum wage. I am a long-term advocate of the minimum wage. I would not have a problem with a lower wage for the first six months if it would create jobs. Is there merit in considering a lower wage for a period of three or six months to see if a person is suitable? The gap must be closed by a social welfare payment because it will defeat the purpose if the individual ends up with less money. There is a cost to business to take on a staff member.

I have long been an advocate that we should give business an upfront grant of €5,000 or an agreed figure whatever it is, to create a job. People want an employment grant and that is the most straightforward thing. For business to avail of most of the scheme, they must be in profit to get the tax back. It is about cash. I get the impression that in the Department the concept of cash does not get the attention it deserves. One cannot run a business without cash.

We miss out on it in all our schemes. However, it is something we can work on too. Other issues that arise are the youth guarantee, which we can look at in the EU. Many of the issues raised have been covered. We can come back to the witnesses on the others as we move along.

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