Finian McGrath (Dublin North Central, Independent)
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234. To ask the Minister for Finance if he will introduce an employer pay-related social insurance tax credit for new hires for micro-businesses with three to ten employees to support the small to medium enterprise sector in order to increase employment and generate a higher tax take; and if he will make a statement on the matter. [32931/15]

Michael Noonan (Limerick City, Fine Gael)
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The Deputy may be aware that my Department recently undertook a public consultation on the role the tax system can play in encouraging entrepreneurship. This consultation forms part of a broader review aimed at assessing the effectiveness of the tax system in terms of starting up and expanding a new business, reviewing the effectiveness of current tax expenditures aimed at entrepreneurs, and examining whether new measures could be introduced to incentivise entrepreneurial activity. I will take this review, and the Deputy's suggestion with regard to a PRSI tax credit for new hires in micro-businesses, into account in the context of my preparations for the forthcoming Budget.

I would point out that employment is effected by a number of factors, including the economic environment. I also note that the 2013 Forfás report on Costs of Doing Business in Ireland 2012 noted that "Ireland has one of the lowest levels of employer's social welfare contributions.  The Irish rate (9.7%) is significantly lower than the OECD average (14.8%) and the euro area average (18.8%)".^[1]CSO data confirm that employer social security costs here are the fifth lowest across the EU27.^[2]

[1]Page 24 of report "Cost of Doing Business in Ireland 2012" published by Forfás in April 2013

[2]Pages 35 and 36 of  report "Business in Ireland 2011" published by CSO in November 2013