Employers' PRSI increase would hurt employment - CIF

The Construction Industry Federation (CIF) has warned thatany moves to increase employers’ PRSI contributions would have a detrimentalimpact on employment.  The CIF believesthat increasing employers’ PRSI contributions could actually lead to greaterstrain on the Exchequer, as it will force more employers to make staffredundant. 

“The last thing this country needs is any move that will putgreater pressure on employers,” said CIF Director General, Tom Parlon.  “The economy is still not on solid ground andmany businesses are struggling throughout the country.  They are hoping that there will be an upturnin economic conditions soon which will make it easier for them to dobusiness. 

“In many cases these companies are doing all they can tokeep staff on their books.  If additionalcosts were imposed on employers this may force them over the edge.  They may not be able to afford the cost ofkeeping these staff if it requires them to fork over more money.

“At a time when the Government is trying to stimulate jobcreation, any measures which place extra burden on employers should beavoided.  We don’t need to see morebarriers to employment.  This countryneeds to have more people working.  Whatwe don’t want to see is more people being made redundant because of poorlythought out policies being implemented.

“For example if you look at the construction sector it hasalready experienced by far the greatest fall in employment numbers since thedownturn began.  The number of directconstruction workers fell from 269,900 in 2007 to only 102,600 during the firstquarter of 2012.  Over 165,000 peoplehave lost their construction jobs in the last five years.

“Talking to various construction companies I know that manyare just about able to keep their employees on their books.  They are doing all they can to keep thesepeople in employment.  But with thecontinued decline in construction activity any move to increase employmentcosts is only going to make that harder.

“A person in regular construction work is contributingthousands of euro in taxes to the Exchequer every year.  This is a lot more beneficial to the economythan an out of work construction worker who is costing the economy about€10,000 euro in jobseeker’s allowance on an annual basis.

 “When you consider those facts it would be foolish tointroduce any measures that could diminish the number of people in work,” Mr.Parlon concluded.