Part of the existing public expenditure on social welfare should be redirected to fund an “ambitious” jobs stimulus package, employers’s group Ibec has said.
In its pre-Budget submission, presented to the Minister for Finance today, the group said the Government should use money it is already spending on social welfare to protect those in vulnerable employment and to help support new employment.
It also called for the introduction of a reduced rate of employers’ PRSI on new jobs created 2010.
Ibec said the Government’s budgetary measures should prioritise “preserving and creating employment”, along with stabilising the public finances.
The group’s director general Danny McCoy said: "Too many jobs have been lost and too many viable businesses are struggling to survive.”
Mr McCoy said: “While the Government must reduce public expenditure, now is the time for a substantive jobs stimulus package through the redeployment of existing expenditure."
In its submission Ibec welcomed the recent announcement that an expanded second round of the employment subsidy scheme would introduced shortly.
It said, however, the scheme must be broadened to include companies that have already availed of short-time working and companies engaged in seasonal production processes.
"If we make the right decisions now, the economy will emerge stronger from this recession. If we postpone these choices Ireland’s economic malaise could continue for many years," Mr McCoy said. The submission also said there should be “no relaxation” of the target to reduce the general Government deficit below 3 per cent by 2013.
According to the estimates, the budget deficit will be 12 per cent of GDP, assuming the Government achieves savings of €4 billion in the Budget.
Ibec called for companies to be allowed to offset R&D tax credit relief against either their employer’s PRSI liability or corporation tax.
