Michael Noonan (Limerick City, Fine Gael)

The notable under-performance of tourism over the past few years highlights the need to improve the sector's cost competitiveness, an objective that the measures I have announced will help to advance. A set of costs that are especially important to tourism and other employment-rich areas of the economy are labour costs. One way to help job creation and improve our labour cost competitiveness is to ease the costs on employers of taking on new employees. Accordingly, and in line with the commitment given in the programme for Government, I am announcing today the halving of the lower rate of PRSI until end-2013 on jobs that pay up to €356 per week. This measure will take effect from 1 July next. Also, 1 July next is the effective date for restoration of the minimum wage to its previous level.

See this speech in context