Olwyn Enright (Laois-Offaly, Fine Gael)
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Question 38: To ask the Minister for Social and Family Affairs the number of employers currently availing of the employers PRSI exemption scheme; the number of employees currently covered under the scheme; and if he will make a statement on the matter. [7986/07]

Michael Noonan (Limerick East, Fine Gael)
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Question 44: To ask the Minister for Social and Family Affairs his views on extending the employers PRSI exemption scheme eligibility rules to cover other employees in addition to those on the back to work allowance; and if he will make a statement on the matter. [7987/07]

Séamus Brennan (Dublin South, Fianna Fail)
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I propose to take Questions Nos. 38 and 44 together.

The PRSI exemption scheme was first introduced in 1989 at a time of high unemployment and high emigration. At the time, the scheme had a secondary focus on groups who might have difficulty entering the workforce, however its main aim was generalised job creation, rather than boosting the employment opportunities of disadvantaged groups. Since 2003 the employer's PRSI exemption scheme is aligned directly with the back to work allowance scheme. The scheme exempts employers from their share of the PRSI contribution in respect of recipients of the back to work allowance for the first two years of their employment. The employees' PRSI contributions are payable in the normal way. There is no limit on the number of people the employer can employ under the scheme. Since February 2005, 1,370 employers have availed of the scheme with a total of 1,992 employees covered. The scheme is continually monitored to ensure its relevance to current labour market and economic conditions. The Indecon evaluation of the back to work allowance scheme which was published in December 2000 concluded that the PRSI exemption has little impact on employment decisions. Given the major changes which have occurred in Irish labour market and economic conditions in recent years, I have no plans to extend the scheme to include other employees other than those who are currently on the back to work allowance. I am satisfied that, overall, the current arrangements introduced in 2003 ensure that the scheme supports those who are most distant from the labour market and whose need is greatest. I will continue to keep the scheme under regular review.