Michael Creed (Cork North West, Fine Gael)
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Question 165: To ask the Minister for Finance the job creation initiatives contained in budget 2011; and if he will make a statement on the matter. [2392/11]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The National Recovery Plan outlines the measures necessary to put the public finances in order. It also identifies the areas of economic activity that will provide growth and employment in the next phase of our economic development and specifies the reforms the Government will implement to accelerate growth in these key sectors. The essential conditions for growth are either already in place, or policies to achieve them are being pursued.

A range of specific policy actions will further support the process of recovery. These can be broadly categorised as follows: - labour market reforms to remove barriers to employment and disincentives to work,

- reforms to improve the non-labour elements of cost competitiveness, and

- supportive sectoral policies to assist recovery across the enterprise base.

These policy actions will support the export recovery, which can, in turn, deliver high value employment and act to stimulate the domestically trading sectors of the economy. Given that Ireland is a small open economy, sustainable growth in the long-term must be export-led.

Budget 2011 progressed specific policy measures to improve the environment for job creation as the economy improves. These include:

The commitment to maintain the 12.5% corporation tax rate;

The extension of the three year corporation tax exemption for start up

companies commencing a new trade in 2011 and the linking of the relief to

the amount of employers PRSI paid by a company;

The continued investment in industry by the development agencies, including EI, IDA, SFI and the County Enterprise Boards;

An additional 15,000 activation places and supports being provided, through the National Employment Action Plan, to ensure that the unemployed have the opportunities for education, training and work experience;

The extension of the Employer Job (PRSI) Incentive Scheme to the end of 2011;

The transformation of the Business Expansion Scheme into an Employment and Investment scheme;

The reduction in the air travel tax to €3 from March 1, 2011.