Joan Burton (Dublin West, Labour)

I thank Deputy Ó Snodaigh for the positive proposals he has made. I do not propose to accept the amendments because of the nature of the Bill and the way they are phrased. However, I accept the principle that the Deputy and other Deputies have set out, that we should have regular assessments the results of various initiatives. The reduction in employers' PRSI, as set out in the Bill, is to continue until the end of 2013. It is a fairly costly investment by the Government to support the retention of employment and the expansion of new employment. Through the media of committee discussions and parliamentary questions, I will be more than happy to report back to the Deputy and other Deputies the progress of this measure.

With regard to the effect of the measure on the cost of labour to employers, calculations done by the staff of my Department indicate that the saving to the employer will be a maximum of about €9.73 per week, or about €500 in a full year. It is not some enormous bonanza for employers. It is a small, targeted measure for particular sectors of the economy, alongside the reduction in the lower rate of VAT, which is an important measure, and the reinstatement of the national minimum wage.

I will be happy to return to Deputies in some months' time when we have information on how the measure is being received. Various international organisations, and in fact many organisations in Ireland, such as the ESRI and various universities, are moving to what is called evidence-based policy, in which one tries to show the actual impact of measures over a period of time. This is, in economic terms, part of a stimulus programme. Stimulus programmes are helpful in moving countries out of the kind of recession we are experiencing and into stabilisation and growth. As such, I hope this measure will produce a positive impact. One of the difficulties for the economy is that, partly because we are in a structural adjustment programme being administered by the IMF and the troika and partly because of the enormous collapse of the building and construction industry and the fall in Government revenues, the possibility of stimulus based on Government support is much more limited than I would like. Those Deputies who follow people such as Joseph Stiglitz will know that providing stimulus is important in terms of giving space to employers and helping to restore confidence in the economy. That is the intention of the measures that are contained in the Bill. They are important measures and I am confident we will obtain a response.

I mentioned the UK market previously. We recently had the important visit of the Queen of England to this country and this, along with the visit of the US President, has resulted in a lot of positive publicity for the country. Thus, we have some grounds for optimism, although, as I have said before, improving the economy, in the context of the size of the collapse in the construction sector, is a marathon and not a sprint. I hope these measures will retain jobs and begin to get the economy moving again.

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