Mr. Tim Duggan:

Undoubtedly, this is an additional cost for someone who is employing people. However, it has been deliberately designed - some people have criticised this because they say it takes too long to get to the maximum rate and the level of contribution is too low - that instead of introducing the contribution at 6% from the beginning, it is phased in over a decade to allow employers and employees to adjust budget-wise to this new cost on employment. The experience in other countries has shown that when it is introduced on a gradual basis like this, it becomes part of the normal remuneration negotiation that goes on between employers, employees and employee representatives on a continuous basis. Over that ten-year period, even though it starts out as a cost on employment, it should work its way into the normal remuneration packages of employees as part of those negotiations.