Written answers
Tuesday, 24 September 2013
Department of Finance
Departmental Expenditure
Michael McGrath (Cork South Central, Fianna Fail)
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192. To ask the Minister for Finance if he will provide in tabular form, the costs incurred annually since 2011 for each aspect of the jobs initiative as announced; the revenue raised from measures to fund the scheme; and if he will make a statement on the matter. [39556/13]
Michael Noonan (Limerick City, Fine Gael)
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The Jobs Initiative announced in 2011 included a range of Revenue and Expenditure Measures to support the protection of existing jobs and the creation of new ones. Details of the revenue measures, as announced, are set out in the table below.
Revenue Measure | Description | Yield/Cost € million |
---|---|---|
9% VAT rate | To support the tourism industry, a second reduced rate of VAT of 9% was introduced from 1st July 2011 under end December 2013 | -120 in 2011 |
-350 in 2012 and 2013 | ||
-60 in 2014 | ||
PRSI | Having the lower rate of PRSI until end-2013 on jobs that pay up to €356 per week. | -85 in 2011 |
-190 in 2012 | ||
-183 in 2013 | ||
-15 in 2014 | ||
PRSI | Abolition of employer PRSI on share based remuneration | -9.5 in 2011 |
-17.7 per year thereafter | ||
Pension Funds Levy | A levy of 0.6% on the market value of assets under management in pension funds and pension plans approved under Irish tax legislation. | +470 per year for 4 years |
As a measure to fund the Jobs Initiative, a temporary 0.6% stamp duty levy on pension fund assets was introduced in the Finance (No.2) Act 2011. This was estimated to yield €470 million a year for 4 years. The Revenue Commissioners have advised me that receipts amounted to €463 million in 2011 and €483 million in 2012. This is broadly in line with the amounts anticipated to be collected in those years. There is no yield from the levy as yet in respect of 2013. The deadline date for payment of the levy in 2013 is 25 September next.
The Jobs Initiative also included a number of current and capital expenditure measures, among which there are a number of measures aimed at retraining the workforce. The details of the expenditure on these measures are a matter for my colleague the Minister for Public Reform and Expenditure, Brendan Howlin T.D.
The impact of the Jobs initiative can be seen by the increase in employment levels, particularly in the accommodation and food services sector. With regard to the training measures, my colleague the Minister for Social Protection, Joan Burton T.D., recently announced that the number of internships, originally planned at 5,000 has now exceeded 20,000.
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