Seanad debates

Wednesday, 15 December 2010

Financial Emergency Measures in the Public Interest (No. 2) Bill 2010: Committee and Remaining Stages

 

4:00 pm

Photo of Jerry ButtimerJerry Buttimer (Fine Gael)

I am talking to section 13. The Minister of State spoke about activation measures and supports. However, the most important aspect the Government has failed to address in the budget or the Bill is that people must be better off in work than on social welfare. As a result of this measure, they are not. The Government has reduced tax credits, revised tax bands, brought in a universal service charge and cut the minimum wage. The end product is that these measures have been targeted at those on middle to low incomes. Where is the incentive to provide employment, for a person to take up a job or for the ordinary person to spend? Consumer confidence is at an all-time low. It is to be hoped it will pick up by Christmas and people will go to Cork city and other cities to shop and support local industry.

The Minister of State spoke about businesses struggling. Our party proposed the abolition of the 8.5% rate of employers PRSI for staff earning below €356 per week for at least three years, which would have the effect of reducing the cost of employing a person on the minimum wage level for 40 hours per week. The Government did not even do that.

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