Paschal Mooney (Fianna Fail)

This section relates to the jobs initiative in the context of halving the lower 8.5% rate of employers' PRSI where reckonable earnings in a week do not exceed €356. The lower 8.5% rate comprises a social insurance contribution of 7.8% and the national training levy of 0.7%. The section provides for the halving of the social insurance contribution and the national training levy. The overall objective is not only to maintain jobs but also to create new ones.

There has been some comment as to whether the measure is to be taken with the reduction in VAT to 9%. I heard industry representatives comment on this over the weekend, as I am sure the Minister did. The chief executive officer of the Irish Hotels Federation has exhorted his members to pass on all of the reductions and, by implication, to take advantage of the Government's initiative in creating new jobs. Some of those who have been interviewed and who work at the coal face are suggesting or inferring at best that they might hunker down and not pass on these savings. In fact, they might absorb the original costs into their own business costs. This suggests - I will not go any further than this - that they will not take on any new workers. Obviously, I would be interested in hearing the Minister's views.