Noonan Announces Plan for ‘Jobs Creation Bill’ in 1st 100 Days if FG Elected to Govt

At the launch of the YFG Youth Manifesto, ‘Let’s Get Young Ireland Working’, Fine Gael’s Finance Spokesman, Michael Noonan announced details of his Party’s plans to hold a ‘Jobs Creation Bill’ within 100 days if elected to office on the 25th of February.

“If we get elected to Government on February 25th, we want to start implementing the jobs plan element of our 5 Point Plan straight away.

“The primary focus of the ‘Jobs Creation Bill’ will be to stimulate growth, protect jobs and create new sustainable jobs in the economy. We would plan that the ‘Jobs Creation Bill’ (JCB) will have passed all stages by July 1st.

“The main components (see Appendix 1 for more detail and costings) of the JCB will include;

• A cut in the 13.5% rate of VAT to 12%;
• Halving the lower 8.5% rate of PRSI;
• Exempting from VAT service companies that export more than 90% of their output. At present this just applies to manufacturing companies.
• Abolition of the Travel Tax;
• Re-allocation of the remaining National Pension Reserve;
• 5,000 National Graduate Internship Places.

“These make up the first stage of the policies needed to support recovery in the jobs market. The ESRI projects that, with the right policies, the Irish economy has the capacity to add 100,000 additional jobs by 2015. Fine Gael’s 5 Point Plan is the only coherent strategy to deliver on this potential.

“The total cost of these initial measures will be €338 million in 2011. In order to finance these additional job-creation measures while respecting the deficit targets agreed with the EU and IMF, we will bring forward the 0.5% levy on pension funds agreed with the pensions industry as a fairer alternative to the halving of income tax relief on new pension contributions being proposed by Fianna Fáil.

“With these measures, implemented within 100 days if elected to office, Fine Gael can provide real hope to a younger generation who have seen their plans and aspirations devastated by a collapsing economy. Fine Gael has the plan and the people to start creating a new hope for a new generation of Irish workers. If we receive the support of the public on the 25th of February our policies and plans will start impacting on the problem by the start of July.”



Appendix 1 – Fine Gael Measures for Inclusion in Jobs Creation Bill

A cut in the 13.5% rate of VAT to 12%
Alongside the rise in the standard 21% rate of VAT proposed by this Government, we will cut the 13.5% rate of VAT on labour-intensive services (construction, home extensions, hotels, restaurants, hairdressing, newspapers etc.) by at least 1.5% until 2014, bringing it down to 12%. This will boost the competitiveness of our tourism sector and help divert domestic consumer spending from import-intensive goods into labour-intensive domestic services. Cost: €196 million.

Halving the lower 8.5% rate of PRSI
We will halve employers’ PRSI for all new and existing jobs paying up to €356 per week from employers’ PRSI until 2014. This makes more sense than the PRSI holidays limited to staff hired after six months on the dole, which is of no benefit in protecting existing jobs and indeed can lead to displacement of existing employees: Cost €100 million.

VAT Exemption for Service Exporters
We will extend the 13A VAT regime from exporters of goods to exporters of services from Ireland, such as insurance, financial services, IT and consulting, health services and travel and transport services. This means that service companies that export more than 90% of their output will become VAT exempt, improving their cash-flows and cutting down on red tape. With the right policy environment, service exporters could play a major role in lifting Ireland out of recession. Cost: €10 million.

Abolition of the Travel Tax
To support our business and tourism sectors, we will complete the abolition of the job-destroying travel tax if we can secure a deal with the airlines to restore cancelled routes. Cheaper and more extensive international access in and out of Ireland will be vital for export-led recovery. Cost: €27 million.

5,000 National Graduate Internship Places
This will offer part-time one-year placements in the public service, private sector and voluntary sector for unemployed graduates to gain valuable experience while studying for a masters or diploma. Among the positions available will be classroom and teaching assistants in schools and nursing assistants in hospitals. Cost: €5 million net of social welfare savings.

Re-allocation of the remaining National Pension Reserve
The Finance Act will also amend the National Pension Reserve Act to transfer control of the remaining reserves to a New Economy Recovery Authority (NewERA), as a first step in the process of restructuring and recapitalising streamlined semi-state utilities to bring forward an extra €7 billion in investments in water, energy and telecommunications. Initial investments by the NPRF will, when market conditions are right, be supplemented by the proceeds of the sale of non-strategic state assets, such as ESB International, Power Generation and Customer Supply (but not ESB Networks) and Bord Gais Supply (but not the pipelines).

Additional Spending on Home Insulation and other Energy Saving Measures
We will double resources for certain home insulation and other residential and commercial energy saving schemes in the second half of 2011. We will bring forward demand for these schemes by announcing their closure to new applications in 2014. Cost: €26 million