Government Jobs Initiative sees introduction of private pensions levy

Minister Noonan said he appreciated the concerns of those in the pensions sector, but said that the levy would be temporary, and he pointed to the extensive tax reliefs applied to private pensions in recent years. The levy is expected to raise some €470m per annum for four years. Minister Noonan insisted that the levy was the best solution, as other taxes would be "more damaging to our economy".

Other Details

There is much focus on our flagging tourism industry in the initiative. As expected, the Air Travel tax is to be reduced to zero. And Minister Noonan said the Minister for Justice Alan Shatter would announce full details of a holiday and short stay visa waiver programme tomorrow, which would make it easier for visitors to come to Ireland. The VAT rate is also to be reduced from 13.5pc to 9pc on tourism-related goods and services, effective from July 1, 2011 to end-2013.

Again, as widely expected, €30m is to be allocated to school works, while there will be an additional €60m allocated to regional roads.

An internship programme is to be set up which will entitle those who take part to an extra €50 per week over and above their social welfare entitlements, while 20,000 places are to be made available to those who want to return to education or avail of training, at a cost of €11m in 2011.

Minister Noonan confirmed that employers PRSI for low paid workers earning less than €365 was to be halved, and that the cut in the minimum wage of €1 would be reversed.

Unveiling further details of measures contained in today's Jobs Initiative announcement, Minister for Jobs, Enterprise and Innovation Richard Bruton unveiled plans for a partial loan guarantee scheme, a micro-finance fund, a 15-day prompt payment scheme, and future reform of JLC/REAs.

The full Government Jobs Initiative programme is available for download here (PDF).