ESRI: Employers should pay for FÁS training

The Economic and Social Research Institute has recommended that employers be made pay for some of the training provided to workers by FÁS.

In a report published today, the ESRI criticised recent reductions in corporation tax for businesses, saying they had created a situation where FÁS training was funded by indirect taxation on the general population.

The ESRI said the Government should either increase corporation tax or introduce a special levy on businesses to recoup some of the cost of training.

The economic think-tank pointed out that businesses are the ultimate beneficiaries of FÁS training and should, therefore, bear some of the cost.

Business groups have predictably criticised the ESRI's recommendations.

Both the Irish Small and Medium Enterprises Association (ISME) and the Small Firms Association (SFA) described the call for increased corporation taxes as "ridiculous".

ISME chief executive Mark Fielding said Ireland's low corporation tax - at 12.5% - is one of the only things preventing foreign multinationals from leaving Ireland.

"It's such a sensitive time at the moment with our tax regime being attacked from all angles across Europe and for the ESRI now to come down to say that we should increase the corporation tax I think it's crazy, especially when the recent survey of multinational CEOs have said that our corporation tax level is probably one of the last advantages we have," he said.