Ms Patricia Callan:

It is untrue to say the country has decreased PRSI. There have been PRSI exemption schemes to support companies hiring long-term unemployed people and those coming off JobBridge. The problem with the schemes is that they have been underused relative to their value. Small companies are not tax experts and the scheme does not really resonate. One of the proposals, which is under discussion, is that it should be simplified. The proposal should be to give businesses €1,000 or €2,000 to take people on. This is plain language and is why measures such as the special savings incentive account scheme worked all those years ago. That would be better than the tax system. In real terms, we have experienced nothing but increased taxation on labour. The marginal tax rate for self-employed people is 55% and 52% for employees, which is one of the highest in Europe. It is a deterrent and we should be incentivising people to work. A tax on labour is a disincentive to work.

We welcome the reduction of business costs but it is mainly in the private sector. Government-imposed charges and fees have increased. It is business to business negotiation that has seen the benefit. It is no great feat that commercial rates have been frozen when rents have dropped by 20% or 30% in real terms. Rates have not dropped to the same extent even though we have years of deflation. There was no deflation in rates. The whole system is unfair. Why is the business community paying for the public good? It is not receiving a service in return. The whole system must be completely revisited and we are disappointed that, in the programme for Government, even if the €500 million of efficiencies in local authorities is achieved, it will do nothing to help businesses. Instead, it will offset the central Government contribution. The proposal is not to split it equally with ratepayers so rates will remain the same.

Members may be aware of the revaluation process at present, which will take ten to 15 years to get around the country. The process will impose extra challenges and people and result in bills increasing by 20% or 30% depending on location.

In terms of access to finance, we have proposed seven measures-----