Dept of Enterprise 'allocated €1.2bn'

Tánaiste Mary Coughlan said tonight her department had been allocated €1.2 billion to protect and create jobs.

However, the figures include a €781 million allocation for the Fás budget next year, along with €135 million for the already announced Employment Support Scheme, whose remit has been broadened after a low take up from businesses.

Minister for Finance Brian Lenihan indicated in his Budget 2010 speech earlier today the Government is looking at ways of streamlining the supports available for research and development.

The Minister for Enterprise, Trade and Employment, indicated this would involve companies being allowed to take their tax breaks against employee taxation costs, something for which a number of companies in the multi-national sector have lobbied.

Her department will also be spending €20 million on training initiatives aimed at taking younger people off the dole, it will also be allocating €14 million to allow the State to access EU funding to protect jobs. Ms Coughlan explained that to get this cash from the EU, the Government has to commit to spending money itself.

She estimated that the cost of the PRSI tax break given to employers who hire people on social welfare will cost €56 million next year.