Labour senator: PRSI plans may push firms ‘over edge’
John Whelan warned that such measures could push many small and medium enterprises “over the edge”.
In addition, he said the real problem with sick leave was within pockets of the public rather than private sector.
Up to now, the opposition to Ms Burton’s proposals has largely come from within Fine Gael, which believes it would be counter-productive to place extra costs on businesses in the current economic environment.
However, Mr Whelan said it was “fair to say” there was some unease within Labour on the issue, despite Ms Burton being deputy leader of the party.
He said “compromise” would be required, with a “scalpel” rather than “a sledgehammer” used to tackle the problems.
He praised Ms Burton’s performance as minister and said she was prepared to argue her own case but also “listen to a sustainable argument”.
The small-business sector and the self-employed were “at the end of their tether” and caution needed to be exercised before any further burdens were imposed on them, he said.
“They have clung on magnificently and bravely, they’ve scaled back, cut down, put in all the hours — they’ve just nowhere else to go,” said Mr Whelan.
He cited Ms Burton’s recent comments to the effect that Middle Ireland could not take more financial pain. “I do hope that Joan Burton keeps her comments in mind when it comes to any changes within the whole area of employers’ PRSI or within the whole area of sick leave in the private sector.”
The proposal to increase PRSI is to cover a €1.5bn shortfall in the social insurance fund from which welfare benefits such as jobseeker’s allowance are paid.
Making employers pay for the first four weeks of sick leave would be another way of reducing the shortfall. Such a move would cut the €876m paid out by the State each year in illness benefit, which comes from the social insurance fund.
Analysis: Whelan: Labour needs internal dialogue
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