CIF urges against PRSI increases
02 July 2012
CIF urges against PRSI increases
The Construction Industry Federation (CIF) has warned that any moves to increase employers' PRSI contributions would have a detrimental impact on employment.
It said that increasing employers' PRSI contributions could actually lead to greater strain on the Exchequer, as it will force more employers to make staff redundant.
"The last thing this country needs is any move that will put greater pressure on employers," said CIF Director General, Tom Parlon. "The economy is still not on solid ground and many businesses are struggling throughout the country. They are hoping that there will be an upturn in economic conditions soon which will make it easier for them to do business."
"In many cases these companies are doing all they can to keep staff on their books. If additional costs were imposed on employers this may force them over the edge. They may not be able to afford the cost of keeping these staff if it requires them to fork over more money."
"At a time when the Government is trying to stimulate job creation, any measures which place extra burden on employers should be avoided. We don't need to see more barriers to employment. This country needs to have more people working. What we don't want to see is more people being made redundant because of poorly thought out policies being implemented."
"For example if you look at the construction sector it has already experienced by far the greatest fall in employment numbers since the downturn began. The number of direct construction workers fell from 269,900 in 2007 to only 102,600 during the first quarter of 2012. Over 165,000 people have lost their construction jobs in the last five years."
"Talking to various construction companies I know that many are just about able to keep their employees on their books. They are doing all they can to keep these people in employment. But with the continued decline in construction activity any move to increase employment costs is only going to make that harder," said Mr Parlon.
"A person in regular construction work is contributing thousands of euro in taxes to the Exchequer every year. This is a lot more beneficial to the economy than an out of work construction worker who is costing the economy about E10,000 euro in jobseeker's allowance on an annual basis."
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