Éamon Ó Cuív (Galway West, Fianna Fail)
Link to this: Individually | In context

Question 14: To ask the Minister for Jobs, Enterprise and Innovation the measures he will introduce to assist the retail sector. [14636/11]

Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context

1The jobs initiative announced by the Government on 10 May includes a number of measures which will assist the retail sector. In particular, the commitment to halve employer's PRSI costs for those earning less than €356 per week will be of benefit, particularly given the part-time nature of many jobs in that sector. Also the reduction in the 13.5% VAT rate to 9% which will apply to hairdressing and printed matter is intended to stimulate consumer spending.

With regard to labour costs, the Deputy will be aware that I published the Report of the Independent Review of Employment Regulation Orders and Registered Employment Agreement Wage Setting Mechanisms on 24 May. The Report's overall finding is that the basic framework of the current JLC/REA regulatory system requires radical overhaul to make it fairer and more responsive to changing economic circumstances and labour market conditions. I have held discussions with various representative bodies on my proposals to overhaul the ERO/REA system, including discussions with employer representative organisations in the retail sector. These discussions afforded me the opportunity to hear at first hand the views of the main representative bodies on how a meaningful and overdue reform might be implemented in these wage-setting mechanisms in order to protect existing jobs and encourage employment growth in key sectors of the economy, including the retail sector. It is my intention to complete discussions with relevant parties by Friday 10 June with a view to submitting a final action plan for consideration by Government before the end of the month.

Along with my colleagues in Government, I will be taking further actions to improve the competitiveness of the retail sector over the coming months. Following the report of the facilitator, John Travers, on a Code of Practice to regulate relationships and practices in the Grocery Goods Sector, I intend to enact legislation that will ban a number of unfair practices in the retail sector. Provision for the Code of Practice will be included in the forthcoming Competition and Consumer Bill. I am also keen to ensure that Local Authority costs which impact on businesses are kept as low as possible. While almost all Local Authorities have again frozen or decreased their Annual Rate of Valuation in 2011, I have had detailed discussions with the Minister for the Environment, Community and Local Government on how we can work together to maximise opportunity for local business development and to keep all costs which impact on business as low as possible. This work will continue and will include the exploration of options for further reducing Local Authority charges to business. Rental costs are an important factor for high street retail businesses in particular. Under the Land Conveyancing and Law Reform Act 2009, upward-only rent reviews were abolished for all new leases signed on or after 28 February 2010.

The Programme for Government expresses our intention to legislate to end upward-only rent reviews for existing leases. This is a matter for the Minister for Justice and Equality in the first instance and I understand that the Minister, Deputy Alan Shatter, has been in contact with the Attorney General on this matter.

Pearse Doherty (Donegal South West, Sinn Fein)
Link to this: Individually | In context

Question 19: To ask the Minister for Jobs, Enterprise and Innovation if he is actively considering a €500 million jobs fund. [14728/11]

Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context

1On 10 May, the Government launched a €500 million Jobs Initiative which has the objective of:

- restoring confidence in the economy, both internationally and domestically,

- supporting the maintenance of existing jobs, and facilitating the creation of new ones,

- improving the business environment, and

- assisting people to get back to work.

The Initiative includes a range of measures which will be taken across Government Departments - including my own - to stimulate the economy and help get people back to work.

The key elements of the Jobs Initiative include:

- a commitment to maintaining our 12.5% corporate tax rate;

- the introduction of a new temporary, second reduced rate of VAT to apply primarily to restaurant and catering services, hotel and holiday accommodation and various entertainment services;

- the halving of the lower rate of employer's PRSI on earnings up to €356 per week;

- the reduction of the air travel tax rate to zero;

- a major reform to the visa application system for entry to Ireland;

- a focusing of the State's capital expenditure towards more employment-intensive projects in the areas of education, local and regional roads and sustainable transport projects;

- additional funding for energy efficiency schemes;

- the provision of an extra 20,900 activation places for the unemployed; and

- improvements to the R&D tax credit scheme.

- developing proposals for a partial credit guarantee scheme to improve access to finance for SMEs, and for a Microfinance Start-up Fund.

This Jobs Initiative is an important first step in putting jobs at the heart of the new Government's strategy. The Programme for Government outlines a much broader range of initiatives which will be embodied in that strategy.