Mary White (Fianna Fail)

I second the motion. I welcome the Minister of State, Deputy Áine Brady. The two years between the first quarter of 2008 and the first quarter of this year have been traumatic for those who have lost their jobs and for businesses trying to survive in the face of recession. The number of people in employment peaked at 2.1 million during the first quarter of 2008. According to the most reliable indicator, the quarterly national household survey, the tsunami of the recession has since led to a decrease of 250,000 in the number employed. Thousands have emigrated during the this period.

After these two traumatic years there are some indications confidence is returning consumers and business, as measured in various sentiment surveys. The SME business owners who have survived - survival has been a mega achievement - are more confident that we have reached the bottom, whereas even one year ago most of them believed they were in free fall. As confidence returns and businesses gradually find themselves on a better financial footing, firms are cautiously considering taking on extra staff. They are cautious because in most cases they had to lay off loyal staff in the past two years and naturally do not want to rush into recruiting before they are sure this can be justified. The PRSI exemption scheme which encourages the recruitment of a person who has been on the live register for at least six months may provide the necessary encouragement and stimulus employers need to make the move and recruit that extra person or persons in 2010. As businesses are acutely conscious of cost, the PRSI saving of some €43,000 in the first year will provide a significant boost for small companies. Up to five additional staff taken on in 2010 can benefit from the PRSI exemption and up to 5% of the base workforce in the case of larger companies. When SMEs look at the range of persons unemployed eligible to participate in the scheme, they will discover there are many willing and capable people to meet their needs. I urge all Members to publicise the scheme and bring it to the notice of businesses.