Joe Costello (Dublin Central, Labour)

This is a good proposal as we are trying to incentivise employers to take on more people. There has been much criticism from employers that the cost of labour is very high, and that argument is being used in another potential battle on the mechanisms to set wages in areas where the trade union movement is not that strong and joint labour committees, registered employment agreements and employment regulation orders are in effect. There is a considerable concession being made to employers in the reduction of PRSI, and the onus must now be put on employers to see how they respond. This is an incentivisation measure that will lead to employer costs being reduced. It shows the Government is serious about the issue but employers are expected to respond.

The concern expressed by Deputies Ó Snodaigh and Wallace should be taken on board and there should be clear mechanisms to supervise and ensure there is no abuse of what is being proposed here. This is not in any way a mechanism for employers to get around employing people or reducing hours or wages. It seeks to ensure more people are taken off the live register. If it is not effective in doing that, the measure should be discontinued.

With regard to Deputy Higgins's comments, it is also another reason we should get this legislation through as quickly as possible. It is due to come into operation on 2 July, along with a host of other worthwhile measures. The reinstatement of a higher minimum wage is a desirable addition, as well as the 0.6% pension levy and PRSI reduction we are speaking about. There is also the national internship scheme.

All of these are geared towards the one purpose of getting people off the live register, getting the country moving and restarting the retail sector. All of this can be combined with the tourism incentives introduced in the Finance (No. 2) Bill. Under the present stringent conditions arising from what was introduced by the last Government in the form of the EU-IMF bailout, it is difficult to put a substantial stimulus package in place but this is a good list of proposals.

The purpose of this measure is to create jobs and I expect new jobs will be created as it is not a question of just bolstering old jobs. Will the Minister suggest how her Department will keep an eye on the operation of this proposal to ensure it fulfils the intended objective?

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