Written answers

Tuesday, 30 April 2013

Department of Jobs, Enterprise and Innovation

Small and Medium Enterprises Supports

Photo of Nicky McFaddenNicky McFadden (Longford-Westmeath, Fine Gael)
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269. To ask the Minister for Jobs, Enterprise and Innovation if he will identify some of the measures being taken to promote cost reductions for small and medium enterprises particularly in relation to labour costs; and if he will make a statement on the matter. [19762/13]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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In that regard, the Government has sought to ensure that the burden of taxation is not excessive and does not discourage job creation. The last Budget specifically contained a ten point tax reform plan to support small businesses. The measures contained in the Budget are intended to assist small businesses in a number of ways, including:

Helping their cash flow position;

Helping them access funding more easily;

Reducing the costs associated with the administrative burden of tax compliance;

Boosting demand for their products in new markets abroad;

Incentivising firms to create jobs.

As regards labour costs for small and medium enterprises, the economy has in recent years achieved very significant improvements. The European Commission, in its most recent forecast, projected that Irish unit labour costs will improve by 23 per cent relative to the euro area average over the period 2009 to 2014. In this regard, I have been engaged in a continuous process of reform to improve Ireland's competitiveness by enhancing wage flexibility while also ensuring protection for vulnerable workers. Last year, I reduced the overall number of Joint Labour Committees (JLCs). I asked the Labour Court to undertake a review of remaining JLC's in line with the provisions of the Industrial Relations Act which I introduced last year. Last week, the Labour Court submitted to me its Review on the Reform of the remaining JLC's. I view this report very much within the context of the continuous process of reform in the area that is designed to improve Ireland's competitiveness by enhancing wage flexibility while also ensuring protection for vulnerable workers. Specifically, the Report suggests a template on how many Committees will continue in existence, and the format within which they will operate over the next five years.

The Government is determined to maintain a focus on competitiveness and, to that end, Forfás, in conjunction with my Department, the Department of Finance and the Department of Social Protection has been tasked under the Action Plan for Jobs 2013 to assess the potential for further actions to support improvements in labour market competitiveness.

Finally, my colleague, the Minister for Social Protection, recently announced details of a new initiative, the JobsPlus scheme, which will incentivise businesses to hire additional employees from the Live Register. This innovative job creation scheme is focused on the long-term unemployed, providing a cash-flow benefit to businesses which hire jobseekers who have been on the Live Register for 12 months or more.

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