Irish Jobs Initiative: Minister for
Jobs, Enterprise and Innovation Richard Bruton today unveiled plans for partial
loan guarantee scheme, micro-finance fund, 15-day prompt payment scheme, radical
reform of JLC/REAs wage boards, diaspora finders fee scheme and other measures.
Irish Jobs Initiative: VAT and PRSI cut to boost tourism and
Unveiling further details of measures contained in today’s Jobs Initiative
announcement, Bruton said:
“Firstly, a partial loan guarantee scheme will be in operation by the autumn.
This measure, which operates successfully in most of the countries with which we
are competing, will be of particular help to precisely the innovative companies
which we are trying to encourage as part of our growth strategy. For every €400m
that is guaranteed by the State an additional 4,500 companies can get further
credit that will in turn create more than 8,000 jobs.
“Secondly, a micro-finance fund will provide funding for small loans to
start-ups. We recognise that the recovery will be driven, in part, by businesses
which start up during the recession but many start-ups lack the small amounts of
finance that can be the difference between success and failure. This commitment
on a micro-finance fund is the government’s contribution to filling this
particular gap in the enterprise finance gap
in the market.
“Third, it is clear that Government can also play a key role in improving cash
flow to businesses, and from 1st July next, all government bodies (excluding
commercial semi states) will be required to pay suppliers within 15 days of
receipt of a valid invoice. Given that the public sector enters contracts with
suppliers worth €15bn each year, the importance of such a policy for all the
companies that do business with the State is clear.
“In terms of reducing costs to business I very much welcome the announcements by
my colleagues Ministers Noonan and Varadkar of reductions in employers’ PRSI, a
targeted VAT reduction and in the travel tax.
“I would also like to welcome the reversal of the previous Government’s decision
to impose employers’ PRSI on share based remuneration. This measure reduces the
cost of employment and promotes modern workplace arrangements whereby employees
share the rewards of success.
“I recently received the Report of the Independent Review of Employment
Regulation Orders and Registered Employment Agreements, which I will be
publishing shortly. The Report says that the system requires radical overhaul so
as to make it fairer and more responsive to changing economic circumstances and
labour market conditions.
“In particular, there are issues relating to overtime and premium payments for
Sunday working, the number of JLCs, and the general functioning and supervision
of the system.
“Furthermore, we will be seeking ways to increase take-up of already-existing
cost-reducing schemes, including Revenue’s Job Assist and the Employers PRSI
“In the area of research, development and innovation, the change in the R&D tax
credit announced today will make Ireland a more competitive location for
locating R&D activities, and will thus have a substantial impact on job creation
in this vital sector. This technical change, which will be revenue neutral, will
allow companies to choose whether to account for the credit against corporation
tax or against the cost of employing researchers. This will greatly improve
Ireland’s attractiveness to multinationals when comparing operating costs
between alternative locations. This change will be included in the forthcoming
“I will shortly be announcing a further series of R&D investments totalling more
than €50m underpinning employment across a number of sectors.
“Finally, two other issues that I am pleased to announce.
“We will shortly be piloting a scheme to incentivise individuals, both in
Ireland and among our diaspora, to attract fast-growing emerging international
companies which are currently not reached by the IDA. I have had detailed
discussions with the IDA and private sector organisations, and details of the
scheme will be announced in the coming weeks.
“I am also pleased to announce a range of measures to improve access to public
procurement by SMEs. Every 1% increase in public procurement contracts won by
small and medium sized firms would deliver €150 million extra in business for
this crucial sector.”
Irish Men without Work - - Male unemployment is now 17.3%, while
unemployment among men aged 20-24 is 32.3%.