Willie O'Dea (Limerick City, Fianna Fail)
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Question 157: To ask the Minister for Finance the jobs created by initiatives funded by him under the jobs initiative; and if he will make a statement on the matter. [27331/11]

Willie O'Dea (Limerick City, Fianna Fail)
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Question 158: To ask the Minister for Finance the likely net impact on the Exchequer in 2011 and 2012 of measures announced in the jobs initiative; if a net economic assessment of the initiative has been or will be undertaken; and if he will make a statement on the matter. [27335/11]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 157 and 158 together.

The intention of the Jobs Initiative 2011 is to focus our now more limited resources on measures that offer the greatest potential for expansion and employment creation in the domestic economy. The aim is to target key sectors of the economy that can assist in getting people back to work, providing opportunities for those who have lost their jobs to re-skill and building confidence in order to encourage consumer activity. The Jobs Initiative 2011 should be viewed as one element of a wider strategy to support economic activity.

Given our commitments under the Joint EU/IMF Programme of Financial Support, and our current public finance difficulties, the Jobs Initiative 2011 is budgetary neutral over the period to 2014 and is being funded through the introduction of a temporary levy on pension funds.

The measures introduced as part of the Jobs Initiative 2011 were expected to result in a net gain for the Exchequer of approximately €200 million in 2011. This is because the forecast €470 million yield from the temporary levy on pension funds more than offset the estimated cost of the other measures introduced. These included the new temporary second reduced rate of VAT of 9%, aimed primarily at the tourism sector, the halving of the lower rate of employers PRSI, the suspension of the Air Travel Tax and the small additional amounts of current and capital expenditure.

In 2012, a net loss to the Exchequer of just over €200 million was projected. This is because in 2012, the full year cost of the measures introduced, including the new temporary second reduced rate of VAT of 9%, the halving of the lower rate of employers PRSI and the suspension of the Air Travel Tax were estimated to be greater than the forecast yield from the temporary levy on pension funds.

The implementation and monitoring of expenditure measures is a matter for relevant Ministers and Departments. My Department, in conjunction with the Revenue Commissioners, will monitor the revenue measures.

It should be noted that the proposed suspension of the Air Travel Tax, at an estimated cost of €15 million in 2011 and €90 million in 2012, was conditional on the airlines increasing passenger numbers in terms of restoring routes and capacity. Following discussions with the airlines in that regard, the Government decided to retain the Air Travel Tax in 2011, pending a further review next spring.

The Jobs Initiative 2011 is designed to support a return to economic growth and strengthen its foundations. It is of course extremely difficult to separate out the increase in economic activity that is attributable to specific initiatives, particularly as the QNHS employment data only shows gross sectoral flows. Nonetheless, the Jobs Initiative 2011 is an important part of the Government's overall strategy to establish the correct conditions to allow our economy to recover, while at the same time respecting the requirement to return our public finances to a sustainable position.