Dáil debates

Wednesday, 15 June 2011

Social Welfare and Pensions Bill 2011: Committee Stage (Resumed)

 

4:00 pm

Photo of Aengus Ó SnodaighAengus Ó Snodaigh (Dublin South Central, Sinn Fein)

I move amendment No. 3:

In page 6, before section 4, to insert the following new section:

"4.—The provisions of section 3 shall apply to new jobs only.".

The amendment relates to the previous section so I will not say too much about it. The purpose is to ensure that the intention of section 3 would apply to new jobs only. We debated the issue and I took note of what the Minister said, namely, that part of the measure is a retention package. I will not delay too long on the point, but if it is a retention package it cannot be an incentive. For it to be an incentive it must be substantial and make a major difference. When I argued that it would create a significant difference in terms of being an incentive to reduce wages or change work conditions the Minister said there is no proof of that. The fact that an employer can retain jobs means there is a financial incentive involved in the change. No one is denying that times are challenging for employers but it is also very challenging for employees. I will not press the amendment. If we had more time I would have elaborated further on my proposal and the mechanism to ensure that at the very least if we are introducing a change to employer's PRSI contributions it would be tied only to the creation of new jobs. That would be an incentive to create new jobs rather than relating to existing jobs and being an incentive to undermine the conditions of existing employees.

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