Essentially, this amendment seeks the preparation of a report on the potential economic stimulus impact and cost-benefit analysis of a targeted VAT reduction for labour intensive services. Such a measure has been tried in other countries. In the context of employment creation in places of employment such as pubs, restaurants and hairdressing establishments, this amendment proposes that VAT would be reduced on the employment content of the costs of such businesses to enable them to be in a better position to recruit staff. In other words, it would cost them less to so do. We are not seeking that such a measure be introduced now. In view of the fact that other countries have tried such a measure, we believe it is worth exploring if it would lead to the creation of additional jobs in such businesses.

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